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PDO Has Big Role in Oman's Transition

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Like larger oil- and gas-producing nations in the Middle East, Oman is keen on diversifying its economy away from hydrocarbons and thriving in the energy transition. It recently set a net-zero target by 2050 for Scope 1 and 2 "operational" emissions that dovetails with its economic diversification plan, known as Vision 2040, under Sultan Haitham bin Tariq al-Said. Oman has a smaller hydrocarbon endowment than neighboring Mideast Gulf states and its reserves are harder to access. But oil revenues still account for almost 35% of its GDP, which means it will not rapidly abandon hydrocarbons. Indeed, like bigger producers Saudi Arabia and the United Arab Emirates, Oman plans to expand its production in the coming years and use oil and gas revenues to fund its transition plans, which are focused on hydrogen, renewable power and carbon capture and storage (CCS). Oman is the largest Arab oil producer that is not a member of Opec, but it does belong to the broader Opec-plus alliance. The economic diversification plan would promote more renewable energy projects that would help meet the country's domestic demand while freeing up more of its oil and gas for export. To oversee and follow up on carbon neutrality plans, Sultan Haitham recently set up the Oman Center for Sustainability. Oman aims to become a top producer and exporter of green hydrogen, with a targeted annual output of about 1 million-1.25 million tons by 2030. “In Oman we are blessed with natural resources like the sun, wind and potential to produce green hydrogen — that’s why our net zero strategy is multipronged,” said Ali Al-Riyami, a consultant and former official at Oman’s energy ministry.

Topics:
Low-Carbon Policy, CO2 Emissions, Corporate Strategy , Renewable Electricity , Hydrogen, Carbon Capture (CCS), Exploration, Oil Supply, Gas Supply
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