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OmansNews

Muscat, Oman
Monday, March 18, 2015
2 pages
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OilDealsandWars
OmanisoneofthelargestoilproducerintheMiddleEast,
anditis
notamemberofOPEC.OPECstandsfor
OrganizationofPetroleumExportingCountries.OPEC
helpscountriesdistributetheiroilaroundtheworld.
Omanhasalargeamountofoilhowever,theirpricesare
notattheirbestsincethispastfebruary,theyaretoolow
OmansOil

____________________________________

Oman oil mines during a lovely sunset


___________________________________

Minister,MohammedAlRumhy,saidataconferencein
KuwaitCity.Standard&Poors(
it'samarketforbusinessin
theworld)
loweredthecountrysoutlooktonegativefrom
stableonDec.5,citingariskthatoilmaydropmorethan
1
expected
.

Omanisatthevergetoconsidertheideaofbeingapartofthe
OPEC.ThereasontheywouldliketojoinOPECisbecauseof
theirlowcostofoil.Theoilpricehasgonedownto$27per
barrel,butsomeofthecapitalexpendituresareforfuture
production.However,theoperatingcostaloneforPDOis

around$10perbarrel2
.PDOisthePetroleumDevelopment
OmanwhichcontrolsbusinessoftheoilforOman.

Thisyearsoilbusinesswillmakeabout

980,000barrelsaday,
whichisabout4percentmorethantheyearof2013.Its
crucialthatwecontinueexecutingthefutureprojects,Al
activitiesbecausewhenthemarketturnsaround,weneedto
havetheseAufisaid.Itscrucialthatwecontinuetheseismic
activitiesandtheexplorationopportunitiesidentifiedandready

togo.5
Oilbusinessisavery
i
mportantforthecountryofOman.Moreover,thedecisionto
beapartofOPECisabigdeal

becausetheywanttobeindependentandhavethe
moneyfortheirown.
Howeverbecauseofthiscrisis,itopensupdoorsfor
newprojectstheywouldwanttodofortheoil
communityin.Sofar,refineryexpansionwillbe
completedbytheendof2016,anda280kmlong
MuscatSoharproductpipelineandLiwaPlastics
IndustriesComplexwillbecommissionedby2017

and20184
.In2019Oman..1 theywouldwantto
doubletheoutputoftherefineriesby2019improving
itsplantsandbuildinganewandbetterone.
OmanplanstoexpanditsstateownedSoharplantto
boostrefiningcapacityby70%.Oncecompleted,the
plantwillbeabletoprocessheaviercrudeoilfor
3
export
.
Oman'soilratewithrisedramatically
withthenewrefinery,anditwillbebuiltin
Duqmwiththecapacitytorefine230,000
bbl/da.
Thesenewupcomingprojectswillmakea
verylargeimprovementtocommunityandhopefully
alloftheseprojectscanbesuccessful.

Our We Spending Too Much Money on


the Oil Business?
WhenIthinkofOman,Ithinkoilofcourse!Then
yourealizehowisthecountrydoing?Arethey
earningmoney,aretheymovingforwardwiththis
businessthattheyareknowfor?Ibelievei'mtorn
inbetweenifthissituationsisaprooracon,My
prosideofthesituation.Welltheproofthisis
thattheoilbusinessisboom
ing
either
satisfying
andunsatisfyingeveryoneknowswhatisgoing
on.Omanhasthebiggestadvantagetheywork
ontheirownandtheydon'tworkwiththeOPEC.

SincetheydonotworkwiththeOPEC,allofthe
profitgoestoOman.Sincetheygetmoreofthe
profittheyspendmoremoneyontheoil,either
doingmoreexpansionsororganizingtheproduct
more.

Thenegativespectrumofthissituation

isthatitsparksconflictswithother
countries.
Currentlythey,havingalotof
kidnappedofworkersandattackstofrom
IS
militantgrouptryingtotakecontroloftheir
minesofoilandtakingtheirbillions!

"AllUScitizensareencouragedtobeawareof
theirsurroundings,andtakeextraprecautions
whentravellingthroughoutthecountry,"saidthe
USembassy,urgingcitizensto"carefully

considertherisksoftravellingtoSaudiArabia"1
.

Also,theyspendalotofmoneyonoilwhentheycouldbe
helpingwiththecountry.portionoftheelectromagneticenergy
emittedbythesunandnaturallyfilteredintheupper
atmospherebytheozonelayerUVradiationcanbeharmfulto
livingorganismsandhasbeenlinkedtoincreasingratesofskin
2
cancerinhumans.


MypersonalopinionIthinkthatspendingonmoneyonone
thingasinoilisnotgoodforthecountry.Allthecountryever
worryaboutisproducingoilanddistributingtotheirbuyers.

____________________________________

OurwespendingtoomuchmoneyontheOil
business?

1.
P,A.F."TheStatement,WhichWas
PublishedontheEmbassyWebsiteLateonFriday,
DidNotIdentifytheSourceoftheThreatsandSaid
NoDetailsWereAvailableonthePlannedAttacks."
TimesofOman
.N.p.,14Mar.2015.Web.18Mar.
2015.
<
http://www.timesofoman.com/News/48762/Article
USembassywarnsWesternoilworkersinSaudiAr
abiaofattacks
>.
2.
"OmanEnvironmentCurrentIssues."

Geography
.N.p.,24Aug.2014.Web.18Mar.2015.
<
http://www.indexmundi.com/oman/environment_cu
rrent_issues.html
>.

OilDealsandWars.
1.

NationsSayingOPECDecisionWrong."

____________________________________
Dotheyeverstopandthinkabouttheircountry
andpeople?SoinconclusionIbelievei'min
betweenbothbecausewecanbothcomprehend
thesituationwecanusemoneyforsecurityandoil
forthecountryofOman.Alsowecaninvest
moneytokeepawayfromgroupsthatwannacome
andtakeawayoil.Alsowecanuselessmoneyon
theoilandcontributemoretothecountryand
thereneed
s.

Bloomberg.com
.Bloomberg,20Jan.2015.Web.18
Mar.2015.
2.
James,A.E."OilProducersinOmanCut
CostsasCrudePricesFall."
TimesofOman
.N.p.,16
Mar.2015.Web.17Mar.2015.<Oilproducersin
Omancutcostsascrudepricesfall>.
3.
Gerbich,Carlin."NewOilRefinerytoBe
BuiltinDuqm,Oman."
NewOilRefinerytoBeBuilt
inDuqm,Oman
.N.p.,17Mar.2015.Web.18Mar.
2015.
<
http://www.constructionweekonline.com/article329
81newoilrefinerytobebuiltinduqmoman/
>.

Macdonald,Fiona."OmanJoinsOtherOil

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