Much research has previously been done into the benefits of energy diversification for national economies; however, these studies have focused on oil-importing countries. This study examines how diversification of the energy sectors in oil-exporting countries could shift the reliance on depletable energy resources to a more sustainable model of renewable energy resources. This study extends the existing literature on energy diversification from oil-importing countries to the previously unstudied region of oil-exporting countries (GCC countries), with a focus on Oman. It fills a gap in worldwide knowledge about energy sustainability in countries which have a unique economic structure where the economy depends majorly on oil and gas revenues. By distinguishing rules and regulations, technology choices, and policies and strategies according to current energy usage, the thesis explains why oil-exporting countries such as Oman have been slower than other parts of the world in implementing energy diversification policy to enhance their energy sustainability, despite having made efforts to substantially improve their oil extraction techniques. This failure to diversify to renewable resources is largely because of the absence of suitable energy policy, as well as oil and gas abundance and large government subsidies that reduce costs of energy use for residents, both of which encourage inefficient energy use and increasing demand. By using a primary mixed methods approach of semi-structured interviews (25 interviews with government officials, academics, and private sector employees) and a case study research design, the study shows that the impact of energy diversification policy in the energy sector of Oman is poor, mainly because of inadequate political will and the heavily fossil fuel-dependent energy structure of Oman. Based on these findings, the study proposes ways in which oil-exporting countries can reduce their local dependence on oil and gas resources and increase their energy efficiency and conservation measures. Policy makers should use the findings of this study to create strong renewable energy policies, academics should use them to further focus on this important subject and private sector companies in the energy field can also benefit by implementing some of the energy-saving measures described.

Much research has previously been done into the benefits of energy diversification for national economies; however, these studies have focused on oil-importing countries. This study examines how diversification of the energy sectors in oil-exporting countries could shift the reliance on depletable e...