Oman is largest oil and natural gas producer in Middle East not a member of OPEC

by Sabrina I. Pacifici on October 20, 2013

EIA full Backgrounder Report on Oman: “Located on the Arabian Peninsula, Oman’s proximity to the Arabian Sea, Gulf of Oman, and Persian Gulf grant it access to some of the most important energy corridors in the world, enhancing Oman’s position in the global supply chain. Oman plans to capitalize on this strategic location by constructing a world-class oil refining and storage complex near Duqm, which lies outside the Strait of Hormuz (an important oil transit chokepoint). Like many countries in the region, Oman is highly dependent on its hydrocarbons sector. In 2012, Oman’s hydrocarbons sector accounted for 86% of government revenues, according to the country’s Ministry of Finance. Further, revenues from oil and natural gas accounted for approximately 40% of Oman’s gross domestic product in 2012, according to IHS Global Insight. Oman’s fiscal breakeven price for oil in 2013 is approximately $104 per barrel, according to a 2012 government announcement, meaning that Oman’s government needs the export price of oil to remain at or above that level to secure sufficient revenues. For reference, in 2012 the price for Omani crude was $109 per barrel. The continued viability of developing Oman’s oil and natural gas resources relies heavily on extraction technologies. Several enhanced oil recovery (EOR) techniques are already used in Oman, including polymer, miscible, and steam-injection techniques. Due to the relatively high cost of production in the country, Oman’s government offers incentives to international oil companies for exploration and development activities in the country’s difficult-to-recover hydrocarbon plays.”

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