Impact of Oil Industry on Oman Economy

oilSolar power is being used in Oman to support oil production.  This is going to be beneficial for Oman’s Vision 20-20 plans for economic diversification.  By using solar on the oilfield, natural gas can be diverted from oil production to private industry.  This can lead to the establishment of a high-technology export industry within the Sultanate.

Currently, the Oman economy is somewhat of a leader in oil production in the region.  Oman is viewed as an Enhanced Oil Recovery (EOR) leader. For the past six or seven years, Oman has been increasing its oil production by injecting high-pressure steam into oil-bearing formations.   Large amounts of natural gas are burned to produce steam and then pumped into the reservoir to heat the oil making it easier to extract. The Sultanate is now ready to take the technology to the next level by generating the steam required for oil production using solar power instead of by burning natural gas.

In an Ernst & Young report, it was found that by using solar enhanced oil recovery in Oman, the Oman economy can be “transformed.” Indeed, if it was used in its entirety, within the next decade, a further 212,400 permanent jobs could be created, over half a billion cubic feet of gas per day can be released and over $12b can be contributed into Omani GDP.  Those numbers are an attractive sway for enhancing the Oman economy.

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