Oman is stepping up investments in its energy sector as part of its broader economic diversification strategy. Data from 2024 shows a modest decline in crude oil production but a notable rise in natural gas output.
According to the Central Bank’s latest report, Oman’s average oil price stood at $81.2 per barrel in 2024. While this figure was slightly below the previous year’s average of $82.3, the oil and gas sector still accounted for 34.6% of nominal GDP. Around 73% of total government revenues also came from this sector.
Crude oil production dropped by 5.4% in 2024 to an average of 992,600 barrels per day, totaling 363.3 million barrels for the year. In contrast, natural gas output rose from 51,996 million cubic meters in 2023 to 54,612 million cubic meters in 2024 — an increase of about 5%. The growth was driven by rising industrial activity, higher electricity demand, and strong export needs.
Experts emphasize that natural gas plays a central role in Oman’s long-term energy strategy. The country aims to enhance production diversity, reduce reliance on imports, and establish a sustainable energy framework for the future.
Economists note that this upward trend in natural gas output could bring positive momentum to the Omani economy. However, they also highlight the need to closely monitor the decline in oil production and uncertainties in global energy markets.
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