The Hashemite Kingdom of Jordan depends heavily on importing crude oil to fulfill its domestic energy needs due to its lack of natural resources. In response, the Kingdom is vigorously looking to broaden its energy sources with oil and gas, and to develop indigenous energy sources, as well as improve energy conservation and efficiency.
The Kingdom’s growing population and influx from neighboring countries strained its infrastructure and services,thereby leading to a surge in energy consumption, and resulting in the Kingdom’s largest energy bill in its history in 2012. The inequity of the Kingdom’s energy consumption versus resources reached a critical phase due to the disruptions of Egypt’s natural gas supply during 2012, which accounts for over 10% of its energy imports. This resulted in an effort by the Kingdom’s government to draft a master plan seeking investments of up to $18bn by 2020 towards locally-produced energy alternatives such as shale oil. – Oxford Business Group, The Report: Jordan 2012 | Energy
In 2010, Jordan increased its spending on oil imports from JD2.6bn ($3.67bn) to a dramatic JD4.019bn ($5.66bn) in 2011. – Ministry of Energy & Mineral Resources, Energy 2012, Facts & Figures
And in January 2012 alone, Jordan increased its spending on oil imports by 80% year-on-year. – Oxford Business Group, The Report: Jordan 2012 | Energy
-Ministry Of Energy & Mineral Resources, Jordan, Annual Report 2011
In 2009, Jordan imported 300 million cubic feet per day of natural gas from Egypt, which dropped to 220m cubic feet per day in 2010 and to 80m cubic feet in 2011. This forced Jordan to turn to alternatives for natural gas, such as diesel and fuel oil to generate electricity for its energy needs. – Oxford Business Group, Jordan: Recharging the energy sector
Jordan’s estimated daily losses over the drop in Egyptian gas supplies in 2011 were $4m and $1.42bn by year-end. – Jordan’s Electricity Regulatory Commission
In 2011, Jordan imported about 6 million tons of crude oil and oil products and the overall demand for primary energy was about 7.5 million tons – an increase of 1.4 % compared to demand in 2010. – Ministry Of Energy & Mineral Resources, Jordan, Annual Report 2011
Jordan’s economic woes are weighed down by inflation, heavy energy imports, reliance on foreign aid, growing unemployment, poverty rates, and an acute budget deficit.
In November 2012, in an effort to prevent Jordan’s treasury from continued financial strain, the Jordanian government lifted subsidies on oil derivatives and began selling fuel products at cost. This lead to a spike in fuel prices and sparked protests and political unrest throughout the Kingdom.
Currently, new and renewable energy resources’ share of Jordan’s energy mix does not exceed 1%. However, Jordan’s Government has set out to increase that share to 7% by 2015 and 10% by 2020.
Fortunately, the Kingdom has 75bn tons of shale oil reserves, which can be utilized commercially by direct incineration to produce electricity and by retorting to produce crude oil. Jordan stands a strong chance of becoming a major shale oil provider, which will ultimately relieve its dependency on importing crude oil, significantly reducing its conventional energy bills, as well as driving its economy. – Ministry Of Energy & Mineral Resources, Jordan, Annual Report 2011