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Oman's energy sector must move beyond its traditional focus on production and infrastructure development by investing in specialised energy trading expertise to strengthen competitiveness and maximise returns from its resources, according to a former senior energy official.
Ali bin Abdullah Al Riyami, former Director General of Marketing at the Ministry of Energy and Minerals, has emphasised the importance of developing Omani professionals with expertise in international energy markets, commodity pricing, shipping, risk management and commercial negotiations.
He highlighted that the economic value of oil extends beyond extraction, with trading strategies, market timing and contractual decisions playing a significant role in determining profitability.
As Oman approaches 2027, Al Riyami believes the sector's priorities should increasingly centre on maximising value rather than simply expanding production volumes. This would involve integrating the Sultanate's oil production, refining, storage and export infrastructure into a more commercially responsive energy ecosystem.
Strategic assets such as the Ras Markaz crude oil storage terminal and the Duqm refinery could play an important role in strengthening Oman's trading capabilities. The facilities are connected by an approximately 80-kilometre pipeline, supporting greater flexibility in crude oil storage, processing and exports.
Al Riyami also stressed the need to improve operational efficiency while reducing production costs and emissions intensity. He suggested that future competitiveness would depend increasingly on the ability to supply reliable, cost-efficient energy with a lower environmental footprint.
On renewable energy and green hydrogen, he advocated a commercially grounded approach, emphasising competitive production costs, secured buyers and long-term offtake agreements as essential conditions for sustainable project development.
Addressing global oil market conditions, Al Riyami cautioned that prices could remain volatile through the remainder of 2026, influenced by geopolitical developments, supply disruptions, shipping costs and fluctuations in global demand.
He identified supply security, inventory levels and economic performance in major consuming markets as key indicators to monitor.
Looking ahead, the opportunity for Oman lies in evolving from a reliable energy producer and exporter into a stronger participant in global energy trading, combining infrastructure investment, commercial expertise and operational efficiency to generate greater long-term economic value.
