MUSCAT: The energy sector in Oman is undergoing significant transformation, serving as a fundamental element of the country's economic framework, characterized by resilience, adaptability, and a progressive outlook. The most recent report from the National Centre for Statistics and Information (NCSI) for the period ending September 2024 offers an in-depth analysis of the sector's performance in areas such as oil, gas, refineries, petrochemicals, electricity, and water.
Oil In the context of global oil market fluctuations, Oman’s oil sector has demonstrated a consistent growth pattern. Daily production experienced a substantial increase, averaging 1.0408 million barrels during the first three quarters of 2024, compared to 994,500 barrels in 2023.
The average price per barrel also saw a slight yet significant rise, reaching $83.9, up from $80.5 in 2023. This indicates the Sultanate's capability to sustain competitive pricing despite varying global demand. However, oil exports experienced a minor decline in September 2024, totaling 25,092.5 thousand barrels, down from 25,279.4 thousand barrels in September 2023. This equilibrium between production and export levels highlights the sector's dedication to ensuring stability while fulfilling international commitments.
Gas Natural gas continues to be a vital component of Oman’s industrial and energy policies. Total production and imports increased to 42,222.1 million m3 by September 2024, compared to 40,585.5 million m3 the previous year. The gas sector's capacity to satisfy growing demand is further illustrated by a significant rise in consumption by power generation facilities, which reached 1,402.8 million m3, compared to 846.8 million m3 in 2023.
The increase in gas consumption underscores its essential function in facilitating Oman’s shift towards more sustainable energy alternatives while maintaining the continuous operation of both industrial and residential services.
Refineries experienced a varied performance in 2024, with total production decreasing to 57,410.6 thousand barrels, down from 62,648.4 thousand barrels in 2023. However, this decline reveals a noteworthy change in market trends. The output of premium-grade fuel (95) surged significantly, rising to 1,328.2 thousand barrels from 609.1 thousand barrels the previous year. This trend indicates a shift in consumer preferences towards higher-quality fuels, likely influenced by changing market demands and improved economic conditions.
In contrast, the production of regular-grade fuel (91) saw a significant drop, falling to 496.9 thousand barrels from 770.7 thousand barrels in 2023. This contrasting production trend illustrates the sector’s capacity to adapt to evolving consumption patterns and prioritize high-value products.
Oman's petrochemical sector continues to enhance its role as a vital element in economic diversification. By September 2024, polypropylene production—a key product—rose to 81.1 thousand metric tonnes, an increase from 61.1 thousand metric tonnes in 2023. This growth reflects the sector’s capability to satisfy the increasing global demand for high-quality petrochemical products.
Total petrochemical production experienced a minor decrease, totaling 699.6 thousand metric tonnes, down from 722.5 thousand metric tonnes the previous year. This slight reduction highlights the necessity for continued investments aimed at enhancing production capacity to satisfy international market demands.
In the electricity sector, Oman has maintained a consistent growth pattern, reflecting the country's expanding urban and industrial development. By September 2024, total electricity generation reached 37,584.7 GWh, an increase from 34,777.4 GWh in 2023. Similarly, net electricity production rose to 36,210.9 GWh, compared to 33,741.8 GWh the prior year.
Regarding water resource management, Oman demonstrates its dedication to sustainability and resilience amid rising demand. As of September 2024, total water production was recorded at 383,391.7 thousand m3, a slight decrease from 390,727.3 thousand m3 in 2023. Notably, the Muscat Governorate saw a significant rise in water production, reaching 20,076.4 thousand m3, up from 17,793.7 thousand m3 the previous year.
