Oman Energy Situation

Sultanate Oman
231px	193px
Capital	Maskat
Official language(s)	Arabic
Government	Monarchy
Head of State	Sultan Qabus bin Said bin Taimur Al Said
Total area	309,500 km2
Population	3,154,134 (July 2013 est.)
GDP (nominal)	US$ 69.97 billion (2011)
GDP Per capita	US$ 23,133 (2011)
Currency	Omani Rial
Time zone	GST (UTC+4)
Electricity generation	19.81 TWh (2011)
Access to Electricity	98.0 %
Wind energy (installed capacity)	-
Solar Energy (installed capacity)	-

Overview

Economically, Oman depends on oil resources. Due to a decline of oil resources, the country increasingly seeks to diversify, industrialize and privatize the economy. Oman's export products are petroleum, reexports, fish, metals and textiles. In 2012, the country's main export partners were China (31.9%), Japan (12.9%), United Arab Emirates (10.1%), South Korea (10%), Thailand (4.4%) and Singapore (4.4%). Oman imports mainly machinery and transport equipment, manufactured goods, food, livestock and lubricants. In 2012, products are primarily imported by the United Arab Emirates (23.6%), Japan (12.6%), India (8.5%), China (6.4%) and the US (6.1%).

Energy Supply

In 2011, Oman has produced a total amount of 73,508 ktoe of energy, which is about 3,078 PJ or 854,898 GWh. Its only energy sources are crude oil (65%) and gas (35%). Oman has no other energy sources, such as coal, nuclear power, heat or renewable energy. The following table provides an overview of Oman's energy production in 2011. Between 2005 and 2012 the supply of electricity has been increased by 11.4 TWh (+120%) and could respond to the fast growing demand of electricity.

Table 1: Total Energy Production of Oman (2011):

Energy Source	in ktoe	in PJ	in %
Coal and Peat	0	0	0
Crude Oil	47,406	1,985	65
Oil Products	0	0	0
Gas	26,102	1,093	35
Hydro	0	0	0
Geothermal, Solar etc.	0	0	0
Biofuel and waste	0	0	0
Electricity	0	0	0
Heat	0	0	0
Total	73,508	3,078

Energy Supply

The total primary energy supply in Oman was 25,276 ktoe in 2011, which is consistent with 1,058 PJ or 293,959 GWh (see table 2). Unlike the national energy production, gas accounts for the largest amount of primary energy supply in Oman (18,040 ktoe), followed by crude oil (9,927 ktoe). Oman is a fossil fuel exporting country. In 2011, the country was exporting 39,481 ktoe of crude oil, 2,152 ktoe of oil products and 9,797 ktoe of natural gas.

Table 2: Total Primary Energy Supply of Oman (2011):

Energy source	in ktoe	in PJ
Coal and Peat	0	0
Oil	9,927	416
Oil Product	-2,690	-113
Gas	18,040	455
Nuclear	0	0
Hydro	0	0
Geothermal, solar, etc.	0	0
Biofuel and waste	0	0
Electricity	0	0
Heat	0	0
Total	25,276	1,058

Energy Consumption

Oman's total final consumption (TFC) has steadily been increased in recent years. While in 2000 the energy consumption accounted for 588 ktoe (6,833 GWh), energy consumption has added up to 1,591 ktoe (18,512 GWh) by 2011. comparing various sectors with each other, the residential sector consumes the most energy, namly 49%, followed by the sector of commercial and public services (34%) and the industry (14%). The excect figures are outlined in the following table.

Table 3: Oman's TFC of Energy (2011):

Sector	Consumption in ktoe	Consumption in GWh	in %
Industry	222	2,583	14
Transport	0	0	0
Residential	779	9,060	49
Commercial and Public Services	549	6,380	34
Other non-specified	40	489	2.6
TFC	1,592	18,512

Energy Sources

Oman has not installed any capacities based on renewable energy.

Policy Framework, Laws and Regulations

General Energy Policy, Energy Strategy

Due to the high dependency on domestic gas and diesel, the Authority for Electricity Regulation (see for a description chapter “Institutional Set-up in the Energy Sector”) seeks to diversify the electric generation process. Besides importing gas, the Authority
for Electricity Regulation remains committed to include renewable energy resources into the country’s energy system. Still, Oman lacks a policy framework and policy instruments and fuel subsidies which prevent the deployment of renewable energy. <o:o:p></o:o:p>

Specific Strategies

(Biomass, Renewable Energies, Rural Electrification, Energy Access Strategy, Poverty Reduction Strategy etc.)

Institutional Set-up in the Energy Sector

The Authority for Electricity Regulation is responsible for the regulations of the electricity and the water sector. It was established in 2004 based on a Royal Degree (78/2004) and according to article 19 of the Law for the Regulation and Privatization of the Electricity and Related Water Sector. The Authority's duty is to secure the provision of electricity and water services in Oman.

The Rural Areas Electricity Company SAOC (RAECO) is an Omani company which provides electricity to customers all over the Sultanate of Oman. It was established in 2005 according to the electricity sector & related water privatization law pursuant to the royal degree No 78/2004. The company is responsible for electricity generation, transmission, distribution & supply and desalination activities under a license issued by Authority for Electricity Regulation. The Royal Degree 79/2004 also issued an electrification funding to provide electricity in remote areas. According to the World Bank, access to electricity amount to 98.0 %.