GCC crude output contracts 5.4% as energy sector adapts to market realities

Muscat: The Gulf oil sector generated $561.2 billion in value added at current market prices during 2024, contributing 24.0 percent to the region's gross domestic product, while constant-price value added reached $541.9 billion, representing a 29.3 percent share, according to freshly released data from the Statistical Centre for the Cooperation Council for the Arab States of the Gulf (GCC-Stat).

The figures reveal a 5.4 percent contraction in crude oil production across the GCC states in 2024, with output averaging 16.1 million barrels daily, down from 17.0 million barrels per day in 2023. Crude exports followed a similar trajectory, declining 7.2 percent to 11.5 million barrels daily compared to 12.3 million barrels per day in the preceding year. The Centre's comprehensive "Energy Statistics" publication offers detailed insights into the performance of oil, gas, and renewable energy sectors throughout the Gulf region, noting stable gas production alongside expanding reserves.

Marketed natural gas production registered a marginal 0.4 percent decrease, settling at 442.0 billion cubic metres versus 443.8 billion cubic metres in 2023.

The report highlights robust reserve growth, with crude oil reserves expanding at an average annual rate of 30.7 percent during the 2020–2024 period, while natural gas reserves grew at a more modest 1.0 percent annually.

By year-end 2024, GCC states held proven reserves of 511.9 billion barrels of crude oil and 44.3 trillion cubic metres of natural gas.

The Gulf states maintained their pivotal position in global energy markets throughout 2024, accounting for 21.8 percent of worldwide crude production and commanding a 26.6 percent share of global crude exports.

Their influence extended to natural gas markets, contributing 10.0 percent of global marketed production and 13.5 percent of international gas exports.

The region's resource wealth remains formidable, possessing 32.7 percent of proven global oil reserves and 21.2 percent of worldwide natural gas reserves.

On the renewable energy front, GCC states achieved total installed capacity of 14.2 gigawatts in 2024—still a modest 0.3 percent share of global capacity, though signaling growing diversification efforts.

The Gulf electrical interconnection network delivered substantial economic benefits, generating $540.5 million in savings through cross-border energy trading, with total exchanged power reaching 1,795.9 gigawatt-hours.