Energy
Energy, a vital ingredient for economic growth, human well-being, and modern, technology-driven lifestyles, is becoming a singularly important global issue because of the predominant dependence of the global economy on fossil fuels—oil, natural gas, and coal—geographical disparities in their availability, as well as rapidly rising consumer demand worldwide. Together, these factors are responsible for the escalating financial, political, and environmental consequences of the world’s energy economy, trends that are expected to continue well into the future.
Energy planning and economics, resource choices and production technology, supply and distribution infrastructure, end-use considerations, market structures and pricing, consumer access, and relevant policy and regulation, are all complex aspects that require informed analyses—based on quantitative data, international experience, and local insight—for devising effective solutions and investment decisions.
The specific areas in which Hagler Bailly offers services in the energy sector are outlined below:
Energy Market Forecasts and Analysis
Hagler Bailly Pakistan has developed specialized tools and methodologies for the integrated analysis of energy demand and supply particularly suited to the needs of developing countries, where underdeveloped markets and uncertainties associated with the economy and resource availability increase the complexity of planning tasks.
The firm’s proprietary Pakistan Energy Model and associated databases have been used extensively in the country by public sector utilities, hydrocarbon exploration and production companies, and government and multilateral agencies for evaluating market trends, pricing impacts, fuel supply options, infrastructure capacities, and for planning the expansion of production, processing, and distribution infrastructure to meet growing national needs. The model’s capabilities include evaluation of the customer base and demand characteristics at the consumer level, econometric and end-use analysis of household and industrial energy requirements and extrapolation to sectoral demand profiles, electricity demand and generation planning, and fuel substitution in the power, industry, and transportation sectors. The model also permits evaluation and balancing of supplies from multiple sources, and of purchase obligations, such as’ take-or-pay’ provisions, taking into account seasonal variations in energy demand.
Pricing, Financial, and Economic Evaluation
Hagler Bailly Pakistan has assisted governments and private sector companies in analyzing pricing structures and value chains in order to evaluate the impact of policy and market developments on energy prices. These have included producer and consumer tariffs for oil, gas, petroleum products, liquefied petroleum gas (LPG), compressed natural gas (CNG), and electricity. Hagler Bailly Pakistan maintains detailed databases on producer and consumer energy prices in Pakistan as well as in international markets, and models that account for specific pricing formulae under applicable energy sales and purchase agreements. These tools allow the firm to conduct rapid assessments of price variations on account of changes in international energy prices, shifts in the supply mix, technological alternatives, and short- and long-term economic and market impacts.
Hagler Bailly Pakistan also assists clients in undertaking economic assessment of energy infrastructure projects following prescribed guidelines, such as those of the World Bank and the Asian Development Bank, and for the integrated technical and economic assessment of project alternatives.
