Decarbonisation measures are becoming an integral part of long-term competitiveness amongst Gulf Cooperation Council (GCC) countries.

This is according to independent energy expert and assurance provider DNV, which recently released its report, Oil & Gas Decarbonization in the Gulf Region. The report is the second in DNV’s Energy Transition Outlook 2026 series on the Middle East, which looks at how Gulf Cooperation Council (GCC) countries are cutting the emissions intensity of their core oil and gas production while continuing to play a central role in global energy supply.

A key message from the report is that the region’s 18% contribution to global oil and gas production is expected to grow, as investment continues in low-cost resources. At the same time, decarbonisation enablers such as electrification of assets, energy efficiency improvements, digitalisation, and methane mitigation are enabling production growth while reducing production emissions across the value chain.

National decarbonisation targets will also be supported by the expansion of solar and wind capacity, which will reduce domestic oil and gas use in power generation during the 2030s and in transport from around 2040. The expansion will also free up volumes for export alongside petrochemicals and low-carbon fuels as GCC countries diversify beyond crude exports through investment in downstream and related industries.

Hydrogen and ammonia are emerging as new low-carbon export opportunities that complement oil and gas while supporting longer-term revenue diversification. With access to low-cost natural gas, abundant renewable resources, and established export infrastructure, the GCC is well-positioned to scale both low-carbon and electrolysis-based hydrogen production. By 2060, the Middle East and North Africa (MENA) is expected to produce around 19 Mt of hydrogen and 13 Mt of ammonia per year, with most projects concentrated in the GCC. Around 50% of production is expected to be exported, primarily to Europe and advanced Asian economies, integrating hydrogen and ammonia into global decarbonisation pathways.

Carbon capture, utilisation, and storage (CCUS) is central both to the decarbonisation of oil and gas production and to the delivery of low-carbon hydrogen at scale. Over 98% of current CCUS projects in the MENA region are located in the GCC, led by Aramco, ADNOC, and QatarEnergy. CO₂ capture capacity, including bioenergy with carbon capture and storage (BECCS) and direct air capture (DAC), is projected to reach around 250 MtCO₂/yr by 2060, supporting national net-zero ambitions.

Request a copy of the report here.