04-05-2017
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Join Date: Oct 2012
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PKG repositories
It should be noted that by default pkg points to pkg.oracle.com. If you are familiar with Linux apt-get or yum that point to vendor repositories, this is much the same thing.
if you don't alter it, when you run pkg update it will connect to the internet, communicate with pkg.oracle.com and download updates.
if you DO alter it, you'll have to change the pkg publisher (repository location) to a local file system. Then manually go to oracle and get the pkg repo updates install them into your repo yourself. it doesn't save time to do it manually, in fact it's a lot more of a hassle to do it because you have to manage the repository AND the server.
If you don't have a security reason (you don't want the server to talk to the internet because it contains sensitive date) or a networking reason.
It's far better and easier, especially for a novice sysadmin, to leave pkg alone and just update from the internet. The same could be said of apt-get and yum they have the same options.