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Oman

Executive Summary

Last Updated: January 7, 2019   |   Previous years
Summary  |  Notes  |  Background reference

Overview

  • Oman is the largest oil and natural gas producer in the Middle East that is not a member of the Organization of the Petroleum Exporting Countries (OPEC).
  • Like many countries in the Middle East, Oman is highly dependent on its hydrocarbon sector. With the increase in international oil prices, the hydrocarbon sector accounted for 30% of Oman’s nominal gross domestic product (GDP) in 2017, an increase from 27% in 2016, according to the Central Bank of Oman. [1]
  • Natural gas accounted for 68% of Oman’s domestic energy consumption in 2017 (Figure 1).


Petroleum and other liquids

  • According to the Oil & Gas Journal, Oman had 5.4 billion barrels of estimated proved oil reserves as of January 2018, ranking Oman as the seventh largest proved oil reserve holder in the Middle East. [2]

Production and consumption

  • In 2017, Oman participated in production cuts agreed to by OPEC members. Because of this agreement, oil production fell from peak 2016 levels, averaging 980,000 b/d in 2017 (Figure 2).
  • Oman consumed 198,000 b/d of petroleum and other liquids in 2017 (Figure 2), most of which were petroleum products refined at Oman’s refineries. A small amount was imported.

More about Production and Consumption in Oman>

Exports

  • Oman is an important crude oil exporter, particularly to Asian markets (Figure 3). China is Oman’s largest export market, receiving 70% of Oman’s crude oil exports in 2017.
  • In 2017, Oman exported 806,000 b/d of crude oil, a decrease from a peak in 2016. The lower crude oil exports were the result of Oman’s production cut implemented under the agreement between OPEC and non-OPEC countries to reduce the global oversupply of crude oil.


Natural gas

  • According to the Oil & Gas Journal, Oman held 23 trillion cubic feet (Tcf) of proved natural gas reserves in 2017. [4]

Production and consumption

  • Oman’s natural gas production grew to a high of 1.1 billion cubic feet (Bcf) in 2017, reversing a recent decline.
  • Oman consumes slightly more than 70% of the natural gas it produces. Consumption more than doubled from 2007 to 2017, increasing from 384 Bcf to 775 Bcf (Figure 4).

More about Natural Gas in Oman>

Imports

  • Oman imports small quantities of natural gas. Oman imported 70 Bcf in 2017 via pipeline from Qatar.

Exports

  • Oman is a member of the Gas Exporting Countries Forum (GECF) and exports natural gas as LNG through its Oman LNG facilities near Sur in the Gulf of Oman.
  • In 2017, Oman exported 394 Bcf of natural gas (Figure 5). [5] Nearly all of Oman’s natural gas exports go to South Korea and Japan, accounting for 84% of exports in 2017. [6]
  • Although Oman is a major exporter of natural gas, rising domestic consumption has caused exports to decline.


Electricity

  • Oman’s electric generation more than doubled between 2006 and 2016, from 13 billion kilowatthours (kWh) to 32 billion kWh. Electricity consumption during the same period also grew at a fast rate, tripling from 10 billion kWh to 29 billion kWh.
  • Oman is a part of the Gulf Cooperation Council’s (GCC) grid interconnection system, which allows for electricity transfers between the six connected countries (Kuwait, Saudi Arabia, Qatar, Bahrain, the United Arab Emirates, and Oman).


Notes

  • In response to stakeholder feedback, the U.S. Energy Information Administration has revised the format of the Country Analysis Briefs. As of December 2018, updated briefs are available in two complementary formats: the Country Analysis Executive Summary provides an overview of recent developments in a country's energy sector and the Background Reference provides historical context. Archived versions will remain available in the original format.
  • Data presented in the text are the most recent available as of January 7, 2019.
  • Data are EIA estimates unless otherwise noted.


Endnotes

  1. Central Bank of Oman, "Annual Report 2017," (June 2017), page 9.
  2. Oil & Gas Journal, "Worldwide Look at Reserves and Production" (December 4, 2017).
  3. Central Bank of Oman, "Annual Report 2017," (June 2017), page 53.
  4. Oil & Gas Journal, “Worldwide Look at Reserves and Production” (December 4, 2017).
  5. BP, "Statistical Review of World Energy 2018"
  6. BP, "Statistical Review of World Energy 2018"