MUSCAT, NOV 24 - The energy industry of Oman, the engine of the Sultanate’s economy, is well-placed to help the country tackle climate change in alignment with the Paris Agreement by converting the challenges presented and converting them into new economic opportunities given the industry’s success over the last 50 years in supporting Oman’s transformation into a modern economy.
The oil and gas markets that have been the wind in the sails of the Middle East’s economic growth since the mid-1900s are charting a new course. A new era beckons as rising populations and obligations to the Paris Agreement mean a transition ‘energy basket’ will be the mainstay of the 21st century. A multifaceted energy basket, which utilizes both fossil fuels and renewable energy, is a proactive approach to meet this demand at an affordable cost.
“A coordinated, multisectoral, innovative and scalable effort — this is what Oman must rapidly embrace in order to adapt to the intensifying impact of climate change with economic and environmental efficiency,” said Raoul Restucci, Managing Director, Petroleum Development Oman. “The ability to engage on these issues and ensure key building blocks are in place is increasingly critical for all stakeholders involved in the country’s energy industry.”
Oman’s top 300 officials and executives tasked with leading the country’s energy industry will meet on Monday, November 25, to brainstorm on how best the sector can help the country meet its climate goals, while driving economic growth. The world’s biggest economies are all still figuring out what ‘good decarbonization’ looks like, so bolstering clarity will improve forecasts and risk-reward profiles.
The Sultanate has vast potential in generating power through renewable sources of energy such as solar and wind. It has set an ambitious goal to have 30 per cent of its electricity demand met by renewable energy projects by 2030, and it also seeks to escalate gas production, shifting its oil-gas production mix from 35 per cent gas in 2015 to more than 50 per cent in 2025.
The 7th edition of the Gulf Intelligence Oman Energy Forum will take place this week, in partnership with PDO, Oman Shell, BP Oman, Occidental of Oman, Oman LNG, Daleel Petroleum and Al-Tamimi. International Speakers from US, Europe and Asia will be joined by regional subject-matter experts from Jordan, Saudi Arabia and Algeria to share best-practices from around the world.
“Have no doubt: the energy transition is capital intensive business. Investor confidence is pivotal to meeting a target that the world cannot afford to miss: the sustainable implementation of the Paris Agreement. What is one key ingredient to buoy investors’ appetite? Transparency,” said Sean Evers, Managing Partner of Gulf Intelligence.
BP Energy Outlook anticipates that the Middle East will remain the world’s largest oil producer and the second-largest gas producer. The region will account for over 34 per cent of global liquids production and 20 per cent of gas production by 2040. At the same time, the share of non-fossil fuels in the Middle East’s primary energy demand mix increases from 1 per cent in 2017 to 13 per cent in 2040.
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