Future of Sultanate of Onan is uncertain with Oman's limited oil reserves. Other sources of income, agriculture and industry, are small in comparison and account for less than 1% of the country's exports, but diversification is seen as a priority by the government. Agriculture, often subsistence in its character, produces dates, limes, grains, and vegetables, but with less than 1% of the country undercultivation, Oman is likely to remain a net importer of food. Since a slump in oil prices in 1998, Oman has made active plans to diversify its economy and is placing a greater emphasis on other areas of industry, such as tourism. Metkore Alloys is due to build a world-class 1,650,000-tonnes-per-annum capacity ferro-chrome smelter in Oman with an envisaged investment of $80 million. A free-trade with the United Statestook effect 1 January 2009.
Oman's proved reserves of petroleum total about 5.5 billion barrels, 25th largest in the world. Oil is extracted and processed byPetroleum Development Oman (PDO), with proven oil reserves holding approximately steady, although oil production has been declining.
Oman's natural gas reserves are estimated at 849.5 billion cubic meters, ranking 28th in the world, and production in 2008 was about 24 billion cubic meters per year.
