Oman giving up more oil

Country is the largest regional producer that's not a member of OPEC.
By Daniel J. Graeber  |  Sept. 19, 2016 at 6:23 AM
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STOCKHOLM, Sweden, Sept. 19 (UPI) -- Oil production from Oman, the largest regional producer that's not an OPEC member, has increased by about 5 percent, a Swedish energy company said.

Swedish producer Tethys Oil said its share of oil production from two onshore operations in Oman, before the government's take, was 12,489 barrels per day in August, about 5 percent more than July levels.

The company is the largest onshore license holder in the country, which is the largest oil and gas producer in the region that's not a member of the Organization of Petroleum Exporting Countries.

Total oil production is around 1 million barrels per day. Oman exports around 375 billion cubic feet of natural gas per year and, using liquefied natural gas, is a key energy supplier to the Asian economy.

A report from the U.S. Energy Information Administration said Oman produced more oil this decade than during the last, thanks in part to enhanced oil recovery techniques, or processes that use steam, gas or chemical injections for further well stimulation.

In a May note, Moody's Investors Service warned the drop in crude oil prices, off more than 50 percent since the middle of 2014, has undermined the economy and finances for members of the Gulf Cooperation Council: Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman.

Moody's said Oman had a steeper financial decline than its peer economies, however, because of its dependence on oil and natural gas. Hydrocarbons accounted for nearly 70 percent of total exports, while oil and gas revenues accounted for almost 90 percent of total government revenues in the five years ending in 2015.

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