Oman Oil And Gas Downstream Market Size, Share, Growth, Forecast and outlook (2024-2031)

Oman Oil And Gas Downstream Market is Segmented By Type(Refining, Petrochemicals, Distribution, Wholesale and Retail Marketing), By Product(Light Products, Liquified Petroleum Gas (LPG), Gasoline (Petrol), Naphtha, Medium Products, Heavy Products, Petroleum Coke, Asphalt and Tar, Paraffin Wax ), By End-User(Petrochemical and Industrial Manufacturers, Utilities, Municipalities, Commercial Transportation, Airlines, Others), and By Region (Alba, Botosani, Cluj, Olt, Timis, Vrancea, Others) – Share, Size, Outlook, and Opportunity Analysis,  2023-2030

Oman Oil And Gas Downstream Market Size

The Oman Oil and Gas Downstream Market reached 2.6 million barrels per day in 2022 and is expected to reach 2.8 million barrels per day by 2030, growing with a CAGR of 1.1% during the forecast period 2023-2030. Since commercial production began, Oman's oil and gas downstream market has been the main driver for the country's economic development.

The oil and gas industry contributes about 30% of Oman's GDP and traditionally, taxes and earnings from oil and gas operations fund about 70% of the nation's budget. Under its Vision 2040 plans, the country emphasizes diversifying its economic origins by using the oil and gas sector as a foundation.

90% of the nation's GDP is planned to come from non-oil activities under the Vision 2040 strategy. The Ministry of Energy and Minerals sets government regulations and policies, with NOC Petroleum Development Oman being the major operator and holding the largest oil reserves in the country. American E&P Company Occidental Petroleum, which is driving Oman oil and gas downstream market, comes in after NOC Petroleum Development Oman with regard of size and scope. 

Oman Oil And Gas Downstream Market Scope

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Oman Oil And Gas Downstream Market Dynamics

Rising Number of Refineries

Since Oman initiated commercial production in 1967, oil has been the driving force in the economy of the country. The sector was severely impacted by the drop in oil prices in 2020, but it is now recovering owing to government support. The government has revealed a budget of US$ 23.38 billion for the country's oil and gas industry in 2022, which is expected to lead to an expansion of the oil and gas downstream sector. 

Ras Madrakah Petroleum Industry Co. and Yanchang Petroleum International signed a contract with Genoil Inc. in July 2021 to provide technology licensing for a 200,000 b/d refinery that will be built in the Duqm Special Economic Zone on Oman's east coast. As a result of lesser bottlenecks and the potential for new refineries & petrochemical facilities, the refinery’s overall capacity is expected to increase during the forecast period.

Volatility in Oil Prices

Oil wealth also has a significant impact on the development and welfare of Oman. The government was recommended to take into account actively promoting non-oil environmental resources due to the potential risks associated with oil price fluctuations. Oman aimed to base its 2022 budget on an oil price of US$ 50/b, up from US$ 45/b in 2021, according to its finance minister. 

The estimated oil price will help Oman deal with the volatility of the oil market and indicates a reliable fiscal deficit forecast that can be financed. The downstream market is prone to changes in the price of crude globally. Sharp and unpredictable variations in oil prices can have an influence on downstream operations' profitability, making it difficult for businesses to plan long-term investments in the nation.

Oman Oil And Gas Downstream Market Segment Analysis

Oman oil and gas downstream market is segmented based on type, product and end-user.

Rising Expansion of Downstream Facilities

During the forecast period 2023-2030, the petrochemical and industrial manufacturers segment is anticipated to account for about 1/4th of Oman oil and gas downstream market. The market in Oman has grown significantly owing to petrochemicals and related industries, which also present numerous opportunities for market expansion. The majority of Oman's oil reserves are controlled by the state-owned Petroleum Development Oman (PDO), one of the biggest oil and gas operators.

During the forecast period, the downstream facilities, including Liwa Plastics, Duqm Refinery and Salalah OQ LPG, are expected to grow. The crude oil distillation unit of the Duqm refinery began operations in 2023, indicating operational preparation for all of the refinery's components. The refinery has a capacity of 230,000 barrels per day and is developed with a hydrocracking unit and a petroleum coke unit in consideration.

Source: DataM Intelligence Analysis (2023)

Oman Oil And Gas Downstream Companies

The major global players include Royal Dutch Shell PLC, Petroleum Development Oman, Kuwait Petroleum International, Total S.A., Oman Oil Marketing Company SAOG, Oman LNG, Partex Oil and Gas orPIC, BP Plc and Occidental Petroleum.

COVID-19 Impact on Oman Oil And Gas Downstream Market

COVID Impact

The downstream oil and gas market in Oman was not exempt from the pandemic's severe effects on the rest of the world. Working from home has substantially lowered Oman's use of electricity, thus lowering LNG prices that were already under pressure due to the country’s weak economy. The agreement of OPEC+ countries began to cut production to roughly 10 million barrels per day of crude production as they faced a pandemic-induced fall in oil prices in 2020. 

The New Agreement aims to cut the worldwide supply by 10% from May to July in response to the sharp decline in demand expected for 2020. IMF estimates that Oman's economic recovery picked up momentum in 2022 owing to the recovery of the hydrocarbon industry and the relaxation of COVID-19 limitations.

AI Impact 

Owing to enhanced techniques made accessible by AI, engineers and researchers can maximize the design and development of the oil and gas downstream business. By automating processes that are risky or time-consuming for humans to complete, organizations can increase productivity, lower costs and improve safety. AI systems, for example, may monitor equipment and signal workers of potential faults before they develop into larger obstacles, reducing the probability of accidents and downtime. 

AI can also assess huge amounts of data to give operators insights that assist smart drilling location decisions, reducing the chances of expensive and failed drilling operations. By providing better resource management, waste reduction and regulatory compliance, artificial intelligence has the potential to substantially decrease the environmental impact of the market.

Russia-Ukraine War Impact

As tensions between Russia and Ukraine grow, several countries imposed trade restrictions and export bans. As Russia is subjected to harsh sanctions, oil and gas prices are expected to remain high for a period of time, which will be beneficial for oil-producing nations and the Gulf countries especially. The country hopes to diversify its economy away from oil and expects that investments in tourism planned between 2021 and 2023 would generate US$ 7.8 billion.

Oil prices surged drastically to about US$ 140 per barrel in March after the beginning of the Ukraine war after hitting a 17-year low in April 2020. According to government numbers released in August, Oman saw a budget surplus of US$ 2 billion in the first half of 2022 as revenue increased as a result of rising oil and gas prices. In the forecast period, it is anticipated that the country's fiscal reforms and increased oil prices will accelerate economic development and provide a budget surplus.

Key Developments

• In March 2023, a memorandum of agreement for cooperation in upstream and downstream oil production was signed between Iran and Oman. The 13th government, led by President Ebrahim Raeisi, put a special emphasis on encouraging overall growth with the country's neighbors, particularly Oman. Increased efforts are being made to foster these collaborations, particularly in the oil and gas sector.
• In 2023, TotalEnergies, a French multinational integrated energy and petroleum company, announced that it will begin gas production from onshore Block 10 in the Sultanate of Oman and agreement with Oman LNG, a joint-venture organization established by a Royal Decree in 1994, for a long-term LNG purchase contract. These developments are in line with TotalEnergies' growth strategy in gas and LNG, a fuel contributing to the energy transition.
• In November 2021, The Omani government announced that the Sohar Free Zone would be the site of its first petroleum coke calcining (CPC) facility. The US$ 150 million initiative would enable refineries in the Sultanate of Oman to add value to the large quantities of petroleum coke they are now producing.

Why Purchase the Report?

• To visualize the Oman oil and gas downstream market segmentation based on product, application and end-user, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of oil and gas downstream market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

Oman oil and gas downstream market report would provide approximately 39 tables, 36 figures and 152 pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies