His Excellency Dr Mohammed Bin Hamad Al Rumhy, Minister of Oil & Gas, Sultanate of Oman speaks exclusively to Pipeline Magazine’s Julian Walker about the current state of the oil market and how heavy oil is playing an important part in Oman’s energy mix
How important is heavy oil to Oman’s hydrocarbon industry?
How important is heavy oil to Oman’s hydrocarbon industry? Heavy oil plays a very important role within our hydrocarbon mix. Oman has maturing fields and light oil and gas has been explored and produced. Over two decades ago, we turned to exploring our unconventional resources. Oman has five active heavy oil fields and has achieved remarkable success with its enhanced oil recovery (EOR) programmes. We have innovated and invested in new technologies to explore this unconventional oil. Our hydrocarbon landscape sees all four major enhanced oil recovery techniques in execution. We also use solar energy to support EOR in the Amal heavy oil field.
What is your outlook for a more balanced oil industry?
The oil industry is in the process of balancing itself. Prices are rising; inventories have declined with producers complying with the OPEC and non OPEC production cut agreement, and demand from emerging markets for oil is increasing. The oil market still has an excess of supply. The current price point is a sign of recovery, and 2018 will be a crucial year to balance the market. It is very important that OPEC and non-OPEC producers continue their cooperation to maintain suitable oil market conditions that encourage oil investments.