Energy Report Oman
- ID: 2105418
- June 2016
- Region: Oman
- 10 Pages
- The Economist Intelligence Unit
Soaring domestic energy consumption, driven by rapid population growth and economic diversification efforts, will grow faster than real GDP (which The Economist Intelligence Unit forecasts will grow at an average of 2.2% a year in 2016-20). Annual energy consumption will rise from 37.7m tonnes oil equivalent (toe) in 2016 to 57.6m toe in 2020.
Growth in energy consumption is driven by the increase in demand for electricity by both the residential and industrial sectors. The government subsidises gas that is allocated to industrial projects, to promote growth and encourage foreign companies to undertake projects in the sultanate. Nevertheless, likely cuts to natural gas subsidies during the forecast period will moderate the pace of consumption growth.
Oman lacks the energy and financial reserves of its wealthy Gulf neighbours and its state budget has been hit hard by the decline in oil prices. The sultanate, which relies on hydrocarbons export earnings for nearly three-quarters of its fiscal revenue, is forecast to run a sizeable fiscal deficit of 16.9% of GDP in 2016. However, this deficit will generally decline to an annual average of 6.4% of GDP in 2017-20 in line with the general recovery in oil prices.
Industry List: Alternatives, Energy, Coal, Energy, Electricity, Energy, Energy, Energy, Nuclear, Energy, Oil and gas
Industry Codes (NAIC): 22
Industry Codes (SIC): 49