The Straits of Hormuz, an important oil transit chokepoint, as viewed from NASA’s Space Shuttle. The Musandam Peninsula, dominated by Oman, points towards Iran at the top of the photograph. The land mass stretching along the edge of the Shuttle’s starboard wing is the United Arab Emirates. Some two-thirds of the world’s remaining oil reserves lie beneath this region and it’s beautiful deserts.
Oman is the largest oil and natural gas producer in the Middle East that is not a member of the Organization of the Petroleum Exporting Countries. Located on the Arabian Peninsula, Oman’s proximity to the Arabian Sea, Gulf of Oman, and Persian Gulf grants it access to some of the most important energy corridors in the world, enhancing Oman’s position in the global energy supply chain. Oman plans to capitalize on this strategic location by constructing a world-class oil refining and storage complex near Duqm, Oman, which lies outside the Strait of Hormuz. Like many countries in the region, Oman is highly dependent on its hydrocarbons sector. Over 2012/13, revenues from the O&G and hydrocarbons sectors accounted for approximately 50% of Oman’s gross domestic product and 86% of government revenues respectively.