Tuesday 5 October 2010

FT.com - Oman walks energy balance tightrope

On the face of it, the outlook is not good. Oman has reserves of only 5.5bn barrels of oil in place, compared with 267bn in Saudi Arabia and 104bn in Kuwait, according to the US Energy Information Administration. That means that Saudi Arabia has almost 50 times as much oil as its southern neighbour.

A quick calculation might then suggest that at current rates of production of more than 800,000 barrels a day, and standard rates of recoverability, the sultanate only has sufficient oil in place to last for the next 10 years.

However the basis of that quick calculation would be misguided, say experts.

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