MUSCAT, Oman, July 22 (UPI) -- The Daily Star reported that oil-rich Oman is taking steps to provide for its future when hydrocarbon resources run out.
Oman currently has a relatively healthy economy, but Sultan Qaboos bin Said will need to lessen his country's reliance on petroleum revenues and its dependence on foreign workers as the nation creates a diversified economy that will outlast his country's oil reserves.
Oman, the oldest independent state in the Arab world, has an economy, which is heavily based on oil production. While recent high oil prices have driven state revenues well above predictions, state projections of current and future production are cause for worry as the current rate of 750,000 barrels per day actually represents a decline, as Omani production shrank 8.9 percent between 2002 and 2003 alone.
Oman's production is less than a tenth of neighboring OPEC-member Saudi Arabia.
Oil revenues currently provide more than 40 percent of Oman's $24 billion gross domestic product.
Some specialists estimate that Oman's oilfields will run dry in less than 20 years.
A top consideration of the Omani government is to fight corruption, epitomized by a recent scandal in which Omani company National Gas officials were found to be diverting gas to other countries for personal profit.
The government intends to better utilize the country's significant natural would not be a final cure for the looming revenue/resource crunch.
