Interview with Mr. Kalim A Siddiqui, former President of Byco Petroleum
PAGE: Tell me something about yourself, please:
Kalim Siddiqui: I have five beautiful daughters and 13 grand children Ma shaa Allah. All my daughters are married and deserted the nest leaving me with my lovely spouse. I am a former Managing Director of Pakistan State Oil and former President of Byco Petroleum. I am holding a Bachelor in Chemical Engineering from University of Bradford in England (UK) and a Masters in Chemistry from Karachi University, has broad-based, global experience by working in USA, UK, Australia, Vietnam & Pakistan for over 36 years. I am an enthusiastic and highly accomplished Executive with 36 years’ of extensive fuels/lubricants business expertise in marketing, sales, operations management and system re-engineering in oil industry by running supply chain, streamlining processes, hunting for new business and growing top producing accounts; I have experience of developed and emerging markets/cultures. I am a collaborative Leader with aptitude to achieve change, excite the organization, infuse new ideas and deliver dramatic, bottom-line outcomes; recognize to accomplish multiple customer-specific priorities with competence, exemplary follow-up and interpersonal abilities; I am highly expert in high-level market segments, top-down selling and vertical market mastery.
I have served as Chairman Oil Companies Advisory Committee (OCAC) and has held directorships in various reputable companies, & professional and educational institutes including Pakistan Refinery Limited, Pak-Arab Pipeline Company, Asia Petroleum Limited, Pak-Grease Manufacturing Company Limited, Petroleum Institute of Pakistan, Pakistan Advertisers Society and Lahore University of Management Sciences. Before joining PSO in 2001, I have served in Caltex (now Chevron) for over 20 years locally as well as internationally. International assignments were located in the USA, Australia and Vietnam. In a longer spell of over 20 years in Caltex, I have dealt with fuels, lubes and LPG in all aspects like product development, product engineering, supply chain, operations, production/manufacturing and sales/marketing, My three years of work in the UK was with Howden Engineering Company, Burmah-Castrol refinery, North West Water Authority and A.P.V Company before coming back to Pakistan in 1980.
PAGE: What is your take on the recent developments in the oil & gas industry?
Kalim Siddiqui:Â The recent developments in the global oil and gas industry are a matter of serious concern. The US-Iran conflict has demonstrated how quickly geopolitical tensions can disrupt energy supplies, transportation routes, refining operations and international prices.
In my view, the present situation is more than simply a crude-oil supply crisis. Disruptions to refineries, shipping and distribution networks have created particular pressure on diesel and other refined petroleum products.
The crisis has also highlighted the importance of energy security. Countries need diversified sources of supply, adequate petroleum storage, modern refining capacity and contingency plans to protect consumers and their economies from international shocks.
For Pakistan, these developments should serve as a wake-up call to strengthen domestic exploration, improve refining and storage capacity, develop strategic petroleum reserves and diversify its energy sources.
PAGE: What is your perspective about the oil prices in the wake of the US-Iran war?
Kalim Siddiqui:Â I expect oil prices to remain elevated and highly volatile as long as the US-Iran conflict continues and uncertainty remains over the security of oil supplies and shipping routes in the Gulf.
The Strait of Hormuz is particularly important because of its role in global energy transportation. Any prolonged disruption could put considerable upward pressure on crude prices. At the same time, I would not expect prices to move in only one direction. If diplomatic efforts succeed, shipping normalises and production and refining capacity are restored, prices could come down significantly.
My assessment is that the immediate outlook will be dominated by geopolitical developments rather than normal market fundamentals. Therefore, oil-importing countries such as Pakistan should prepare for continued volatility rather than assume that prices will quickly return to their previous levels.
PAGE: Flows of diesel and other refined fuels remain constrained due to the conflict. What is your take?
Kalim Siddiqui:Â The shortage of diesel and other refined petroleum products is particularly concerning because refined fuels are essential to virtually every part of the economy.
Diesel is critical for transportation, agriculture, construction, industry and the movement of goods. Therefore, prolonged restrictions on diesel supplies can have a wider economic impact than an increase in crude-oil prices alone. It can raise transportation costs, food prices and overall inflation.
The current situation demonstrates that energy security is not only about having access to crude oil. A country must also have sufficient refining capacity, storage facilities, strategic reserves and reliable transportation and import routes. For Pakistan, I believe this is an appropriate time to strengthen petroleum-product inventories and strategic reserves and to ensure that the country has sufficient supplies to withstand temporary international disruptions.
PAGE: How would you comment on Pakistan’s reported proven oil reserves?
Kalim Siddiqui: Pakistan’s reported proven oil reserves of approximately 243 million barrels are modest compared with the major oil-producing countries. The figure also highlights Pakistan’s continuing dependence on imported crude oil and petroleum products. However, I would not look at the reserve figure in isolation. Pakistan still has considerable potential for further exploration, and the country needs to create an environment that encourages investment in exploration and production through consistent policies, appropriate incentives and regulatory stability.
At the same time, Pakistan should recognise that domestic oil reserves alone cannot meet its energy requirements. The country needs a comprehensive energy strategy combining domestic oil and gas exploration with renewables, hydropower, nuclear energy, energy efficiency and diversified petroleum imports. The present international crisis has clearly demonstrated the vulnerability of countries that depend heavily on imported energy. Pakistan should therefore use this situation as an opportunity to strengthen its energy security, increase strategic petroleum reserves, improve refinery capacity and reduce its vulnerability to international oil-price and supply shocks.