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Oman: Investment in Oil, Gas Exploration, Production Stand at $5.84 Bn

Oil companies operating in Oman drilled many exploratory wells in various oil and gas concession areas, targeting different reservoirs at varying depths (Oman News Agency)
Oil companies operating in Oman drilled many exploratory wells in various oil and gas concession areas, targeting different reservoirs at varying depths (Oman News Agency)
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Oman: Investment in Oil, Gas Exploration, Production Stand at $5.84 Bn

Oil companies operating in Oman drilled many exploratory wells in various oil and gas concession areas, targeting different reservoirs at varying depths (Oman News Agency)
Oil companies operating in Oman drilled many exploratory wells in various oil and gas concession areas, targeting different reservoirs at varying depths (Oman News Agency)

The total volume of investment in oil and gas exploration, production, and development during the first half of 2023 reached $5.84 billion, announced Director General of Oil and Gas Exploration and Production at the Energy Ministry Saleh al-Abbouri.

Abbouri said that capital expenditure, including geological surveys, drilling, and facilities, accounted for 62 percent of total investment, while 38 percent went to operating expenses.

According to Oman News Agency, the official indicated that during 2023, oil companies operating in Oman drilled many exploratory wells in various oil and gas concession areas.

The operations targeted different reservoirs and at varying depths, indicating that the initial results of some of the wells are “promising” and will be confirmed through long-term testing that may extend for several months or more, said Abbouri.

Some wells need further study and testing, with the primary objective of maintaining stable levels of production and reserves.

Untapped concession areas are open areas for investment, said Al Abbouri, noting that the Ministry launched a tour of bidding early this year for Blocks 15, 54, and 36, which received significant interest from several local and international companies.

The Ministry is currently studying the offers, and the areas will be assigned shortly.

Abbouri stated that Occidental Oman recently announced operations within the Block 65 oil field, noting that the well is not exploratory but one related to previously discovered fields.

The well’s initial production reaches 6,000 barrels of oil equivalent per day, which is relatively higher in volume than wells previously explored in the region.

However, he indicated that the production there is expected to decrease naturally.

Abbouri explained that the company is currently working on a water injection project to maintain the same production levels from this well and wells to be drilled in the same field.

He affirmed that Oman is committed to its agreement with the Opec+ countries to reduce its crude oil production.

Oman has announced a voluntary reduction of 40,000 barrels per day of crude oil in May 2023, said Abbouri, adding that the country is committed to doing so until December 2024.

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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."