Overview
Technology adoption in Oman’s energy sector is progressing from foundational digitalisation toward Industry 4.0 integration. The Fourth Industrial Revolution Centre (inaugurated 2024) serves as a national accelerator for AI, IoT, blockchain, and advanced analytics deployment across priority sectors. The sector’s current digital maturity level reflects both infrastructure readiness and organisational capacity for technology absorption.
Key Indicators
| Indicator | Current | 2040 Target |
|---|---|---|
| Digital Maturity | Emerging | Advanced |
| Automation Level | Low-moderate | High |
| Data Analytics Adoption | Early stage | Widespread |
Analysis
Technology transformation in energy spans several dimensions: process automation, data-driven decision making, customer experience digitalisation, and ecosystem connectivity. PDO, OQ Group, Shell, BP, TotalEnergies, OPAL are leading adopters, deploying enterprise resource planning, IoT sensors, and cloud-based platforms. However, the broader sector ecosystem, particularly SMEs, lags significantly behind. The 5G rollout provides enabling infrastructure, but enterprise adoption requires complementary investment in skills, change management, and data governance frameworks.
Challenges
Technology adoption barriers include high upfront costs, shortage of local tech talent, legacy system integration complexity, and cybersecurity concerns. Oil price volatility, reserve depletion risk, high breakeven cost (~USD 75/bbl), slow progress on enhanced oil recovery, and the need to pivot toward green hydrogen at scale.
Opportunities
AI and machine learning applications, digital twins for asset management, blockchain for supply chain transparency, and IoT-enabled predictive maintenance represent high-impact opportunities. Green hydrogen mega-projects (HYPORT Duqm, 25 GW), solar irradiance advantage (>2,000 kWh/m2/yr), carbon capture and storage potential in depleted reservoirs, and downstream petrochemical expansion.
Vision 2040 Targets
Reduce hydrocarbon GDP share to below 20 percent; achieve 30 percent renewable energy in the electricity mix; become a top-three global exporter of green hydrogen by 2040; increase Omanisation to 90 percent.