DNV’s Oil & Gas Decarbonisation in the Gulf Region report finds that GCC countries are pursuing a dual strategy of continued hydrocarbon expansion alongside targeted decarbonisation to maintain global competitiveness.

Since 2005, the GCC has supplied nearly 18 per cent of global oil and gas, a share expected to grow due to low production costs, advantaged resources, and proximity to rising Asian demand.

Emissions reduction is increasingly viewed as essential to sustaining this role.

Operational decarbonisation is accelerating.

Electrification of pumps, compressors, and offshore facilities—via grid connections, renewables, and hybrid systems—is reducing Scope 2 emissions.

Energy-efficiency measures, digital tools, and artificial intelligence are lowering energy intensity and emissions per barrel.

Methane abatement is a major near-term focus, with routine flaring targeted for elimination by 2030, expanded leak detection and repair programs, and alignment with international methane initiatives.

Domestic energy systems are being restructured to reduce internal oil and gas consumption through renewables, electrification, and efficiency, freeing volumes for export and low-carbon fuel production.

Export profiles are shifting toward higher-value products, including petrochemicals and low-carbon fuels.

The report highlights hydrogen and ammonia as major long-term opportunities. By 2060, MENA is projected to produce around 19 Mt of hydrogen and 13 Mt of ammonia annually, exporting about half, mainly to Europe and Asia.

Carbon capture, utilisation and storage underpins this transition, with over 98 per cent of regional CCUS projects located in the GCC.

Captured carbon is expected to reach 250 Mt per year by 2060, alongside 81 Mt per year of carbon removal from BECCS and DAC.

Overall, DNV concludes that the Gulf’s energy transition will be sequenced: emissions intensity declines while hydrocarbon production, revenue growth, and investment continue. -OGN/TradeArabia News Service