SHIFTING ENERGY

For nearly nine decades, Petroleum Development Oman (PDO) has been at the heart of Oman's economic growth. Today, as the first Omani Managing Director of the 88-year-old company, Aflah Al Hadhrami is steering PDO into a new era, one defined by purpose, people, and sustainability.

- RAWAN HASSAN

There's no denying that the global energy landscape is in flux. Calls for a faster transition to sustainability are intensifying, but the International Energy Agency (IEA) notes that the overall outlook for oil demand has barely shifted from last year's forecast. Yet, 2025 has already tested the resilience of oil markets. Trade tensions and economic uncertainty are dampening growth, while OPEC+'s decision to speed up the unwinding of production cuts has added fresh pressure.

Meanwhile, according to IEA estimates, global oil demand, mainly driven by the U.S. and China, is projected to rise by 2.5 million barrels per day between 2024 and 2030, reaching a plateau of about 105.5 million barrels per day by the decade's end. In contrast, growth is expected to slow sharply—easing from roughly 700,000 barrels per day in 2025 and 2026 to marginal increases in the following years—before tipping into a slight decline by 2030, under current policy and market trajectories.

While the global landscape appears challenging, oil has been the pillar of Oman's economy since 1967, funding infrastructure, education, and healthcare. The sector provides about 72% of government revenues and nearly 30% of GDP, with China as the main export market, based on the International Trade Administration's data. Oman produces around one million barrels per day under OPEC+ quotas, with reserves of 5.2 billion barrels of oil and 24 trillion cubic feet of gas, as of 2022.