(MENAFN- Muscat Daily) The deployment of solar enhanced oil recovery (EOR) technology in Oman to reduce the amount of natural gas used for oil production will have a significant and lasting impact on job creation and economic growth in Oman over the next decade, according to a recent report from Ernst & Young (EY).
The report, sponsored by GlassPoint Solar and titled Solar EOR - An In-Country Value Assessment for Oman, found that the full-scale deployment of solar EOR, in which solar produces 80 per cent of the steam needed for EOR projects, by the end of 2023 could save 531,000 mcf of gas per day and generate up to 212,000 jobs throughout the sultanate.
Last year, PDO and GlassPoint, a leader in solar EOR, had announced the successful commissioning of Middle East's first solar EOR project at PDO's Amal West field, in southern Oman.
Speaking to Muscat Daily, Rod MacGregor, CEO of GlassPoint, said that the company has an opportunity to establish a manufacturing facility and supply chain within Oman to meet growing demand for solar EOR throughout the region.
He said, ''This investment would create a world-class solar industry alongside Oman's world-class oil and gas industry. There are also immediate opportunities for solar EOR in Oman's neighbouring countries which are also challenged by gas scarcity and oilfield maturity, but enjoy abundant sunshine.''
''We need three conditions to deploy solar EOR: Abundance of sunshine, presence of heavy oil and shortage of natural gas resources. We have all these throughout the region except Qatar, that has enough gas resources. Oman is well ahead of other regional countries and if it does it there is an opportunity for Oman to be established as a regional hub for solar EOR,'' MacGregor said.
He added that GlassPoint is engaged in discussions with PDO as well as other operators in the oil and gas industry in Oman to explore opportunities for solar EOR.
EY chief economist Mark Gregory said, in a press statement, that 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.
''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 localise the supply chain for solar steam generators, solar EOR could contribute more than US$12bn to Oman's GDP over the next decade,'' Gregory said.
The EY report noted that 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 shortage.
It said that Oman is well-positioned to grow into a hub for solar EOR technologies and supporting industries. As the pioneer of solar EOR, Oman can seize regional and global export opportunities which can create additional jobs by localising the solar supply chain and ancillary industries. Coupled with the impact of gas savings, full-scale solar EOR deployment across the region could create up to 212,000 permanent jobs in Oman, as well as an additional 90,000 jobs to support project construction, the report added.
''Oman is not ready for the full-scale deployment of solar EOR, but this is an idea which is possible over ten years. And we are optimistic,'' added GlassPoint's MacGre
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