Energy
From The Report: Oman 2023
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As Russia’s invasion of Ukraine and climate change continue to disrupt market dynamics, the transition to cleaner sources of energy has never been in sharper focus. Oman’s policy response is guided by Oman Vision 2040, which aims to put the economy on a more diversified and sustainable footing, while protecting the environment and improving livelihoods. Other notable initiatives include the country’s goal of becoming a net-zero economy by 2050, and an international leader in the export and production of hydrogen. This includes adding 25 GW of captive solar and wind capacity to serve green hydrogen projects. Oman has also pledged to reduce its greenhouse gas emissions by 7% compared to the business-as-usual scenario by 2030. Oman’s reserves of natural gas are set to play a leading role in fuelling industrial growth in the coming years, as processes that currently use fossil fuels switch to green hydrogen, allowing Oman to step up exports of its surplus gas as liquefied natural gas.

This chapter contains interviews with Talal Al Awfi, CEO, OQ; Hamed Al Naamany, CEO, Oman LNG; Mazin Al Lamki, CEO, Energy Development Oman; and Steve Phimister, Managing Director, Petroleum Development Oman.

Articles from this Chapter

Overview

In transition: Oil and gas are still the central to the industry, but efforts are under way to facilitate the switch to cleaner fuels
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As Russia’s invasion of Ukraine and climate change continue to disrupt market dynamics, the transition to cleaner sources of energy has never been in sharper focus. Oman’s policy response is guided by Oman Vision 2040, which aims to put the economy on a more diversified and sustainable footing, while protecting the environment and improving livelihoods. Other notable initiatives include the country’s goal of becoming a net-zero economy by 2050, and an international leader in the export and…

Interview

Going green: Talal Al Awfi, CEO, OQ, on maintaining oil production and funding alternative energy projects
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Interview: Talal Al Awfi What projects are in the pipeline to achieve decarbonisation and fulfil Oman’s energy transition strategy? Which are the main priorities? TALAL AL AWFI: Oman’s National Energy Strategy is closely aligned with its long-term economic vision. The country aims to generate at least 30% of its power from renewables by 2030. Renewables are playing a larger role in the energy mix, with rapid growth seen in solar and wind power. Given that the cost of energy produced from renewables…

Analysis

Drilling up: Advanced technologies are making the extraction of oil in deep reservoirs less costly, contributing to a rise in production
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Ever since Oman’s oil production exceeded 1m barrels per day (bpd) in 2016, the sultanate has strived to maintain a comparable daily output. Despite the drop in production resulting from the onset of the Covid-19 pandemic in March 2020, which crippled global crude demand, Oman’s production of crude and condensates – a light type of crude oil derived from gas production – rebounded from its pandemic lows. The industry received an additional boost from international prices being significantly…

Interview

Ahead of the curve: Hamed Al Naamany, CEO, Oman LNG, on priming the local gas industry to meet global demand
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Interview: Hamed Al Naamany What are the priorities of the domestic natural gas industry in light of global developments? HAMED AL NAAMANY: The local natural gas sector is working to remove bottlenecks in operations, investment and procedures amid global macroeconomic shifts. The industry is also prioritising the optimisation of existing facilities and production enhancements. Looking to the future, the focus will be on strengthening operations and becoming more responsive to changes in demand, with…

Interview

Alternative sources: Mazin Al Lamki, CEO, Energy Development Oman (EDO), on the role of renewables and hydrogen in the shift to sustainability
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Interview: Mazin Al Lamki What role do you envision for renewables in the future energy mix, and what more can be done to boost private investment in this space? MAZIN AL LAMKI: The substantial expansion of renewable power sources presents numerous advantageous opportunities for Oman’s energy sector. With the potential to exceed 200 GW of solar and wind generation capacity, the country’s renewable potential far surpasses its current domestic demand, opening doors for export of renewable energy…

Analysis

Fuelling the transition: Existing infrastructure and new projects are expected to help the sultanate reach its green hydrogen targets
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With the development of a global hydrogen-based economy presenting a significant avenue to advance economic transformation across the GCC, Oman, Saudi Arabia and the UAE have taken the lead in exploring such opportunities. While Saudi Arabia and the UAE are developing general hydrogen strategies, Oman is focusing specifically on green hydrogen generated from renewable or low-carbon energy sources. Opportunities Oman aims to produce 7.5m-8.5m tonnes of green hydrogen per year by 2050, by which point…

Interview

Efficiency gains: Steve Phimister, Managing Director, Petroleum Development Oman (PDO), on decarbonisation and lower-emissions fuels
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Interview: Steve Phimister What are the main investment opportunities in the domestic oil and gas segment? STEVE PHIMISTER: The appetite for investment in oil and gas in Oman is positive in 2023 and will remain so in the long term. Local players are working to increase productivity, security and affordability while reducing emissions. Similar targets are shared by neighbouring countries. To that end, investment in decarbonisation technologies is expected to facilitate an abatement of emissions in…

Analysis

Decarbonisation solutions: The Gulf looks to carbon capture and hydrogen to drive the transition to clean energy production and net-zero emissions
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As hydrocarbons producers reap sustained revenue from high global prices, national oil companies (NOCs) in the Gulf are accelerating investment in carbon capture, utilisation and storage (CCUS); hydrogen; and cleaner sources of energy to make their activities less carbon-intensive and support the energy transition. Gulf NOCs’ low-cost production advantages and massive hydrocarbons resources mean that CCUS can reduce emissions for the coming decades as the world continues to rely on oil and gas…

Analysis

The long game: Impact of rising global oil prices on the shift towards renewables
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After opening 2022 at around $78 per barrel, Brent crude oil prices rose sharply over the next few months to surpass $127 on March 8 – the highest price in 14 years, driven in part by Russia’s invasion of Ukraine – before moderating slightly to around $106 as of mid-March. Although investment in oil and gas has fallen by about 30% since the outbreak of the Covid-19 pandemic, there are signs that increased demand and the rise in prices could lead to a reversal of that trend. Carbon Tracker,…

Analysis

Powering the transition: Hydrogen holds promise for sustainable energy in the Gulf
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With hydrocarbons-rich countries in the Gulf increasingly looking to reduce their carbon emissions, some in the region are turning to multi-coloured hydrogen as a more environmentally sustainable solution. Along with renewable sources like solar and wind, hydrogen is regarded as a potential low-carbon or zero-carbon fuel that is key to the transition away from fossil fuels. However, different types of hydrogen tend to have different types of impact on the environment. Blue hydrogen is created when…