EY: Solar EOR could generate growth in Oman

MUSCAT, Oman -- According to a new report from Ernst & Young (EY), deploying solar enhanced oil recovery (EOR) in Oman to reduce natural gas used for oil production will have a significant and lasting impact on the country’s economic growth.

The Ernst & Young (EY) report, sponsored by GlassPoint Solar and titled Solar Enhanced Oil Recovery: An In-Country Value Assessment for Oman, found that full-scale deployment of solar EOR by the end of 2023 could save 531,000 thousand cubic feet (mcf) of gas per day and generate up to 212,000 jobs throughout the Sultanate.

GlassPoint Solar is the leading provider of solar steam generators to the oil and gas industry for applications such as EOR

Oil operators worldwide deploy EOR to loosen heavy oil and boost well productivity by up to 300 per cent. By replacing gas-fired steam generation with solar, GlassPoint Solar  can reduce EOR gas consumption by up to 80 per cent; the gas saved can be redirected to higher value uses such as LNG export, industrial development and power generation.

“EOR is of strategic importance to Oman’s future oil production, but its use of natural gas creates a gas supply conflict with other national priorities,” said Mark Gregory, EY chief economist. “Using solar energy for steam production will free valuable gas resources needed to power new industries and diversify the economy. Furthermore, if Oman were to localize the supply chain for solar steam generators, solar EOR could contribute more than $12 billion to Omani GDP over the next decade.”

Gas savings will fuel industrial expansion

Natural gas used for oil production accounts for almost a quarter of Oman’s total gas consumption, and that number is growing rapidly*. EY concluded that the full-scale deployment of solar EOR in Oman, in which solar produces 80% of the steam needed for EOR, would redirect up to 531,000 mcf of gas per day by the end of 2023.

The gas not burned for EOR can be used for higher-value applications, such as LNG export and power generation. Additionally, gas can be redirected to the Omani private sector, where dozens of industrial projects have been cancelled or stalled in the past decade due to gas shortages.

“Greater access to natural gas is critical to achieving economic diversification,” said Ahmed Amor Al Esry, partner and oil and gas sector leader at EY Muscat. “Gas used for oil production means less gas to power Oman’s growing economy. Solar EOR can help maximize our existing gas resources, which could have a transformational impact on the future of the Sultanate.”

Establishing a world-class solar power industry in Oman

Oman is well-positioned to grow into a hub for solar EOR technologies and supporting industries. As a result, the nation’s workforce will develop greater expertise across solar technology innovation, project deployment and manufacturing. Experience with solar EOR development will transfer to other energy-related sectors, fostering broader economic growtnike