• Jordan, unlike its immediate neighbors, does not possess significant energy resources. As of January 2013, the Oil & Gas Journal estimated Jordan's proved oil reserves at just 1 million barrels and its proved natural gas reserves at slightly more than 200 billion cubic feet (Bcf). Oil shale resources have the potential to increase Jordan's reserves significantly, but as of early 2013 such resources are not yet commercially viable.
• As a result of its lack of significant energy resources, Jordan relies heavily on imports of crude oil, petroleum products, and natural gas to meet domestic energy demand. In 2010, Jordan imported approximately 68,000 barrels per day (bbl/d) of crude oil and 36,000 bbl/d of refined products. In addition, Jordan imported almost 90 Bcf of natural gas in 2010.
• Government statistics indicate that in 2011 the use of oil and oil products accounted for over 80 percent of Jordan's total primary energy demand, but that domestic sources of oil and natural gas met just 3 percent of that demand.
• Jordan is pursuing several pipeline deals, notably with Iraq, to help bolster its energy security. One proposal would send Iraqi oil from the area around Basra to the Jordanian port of Aqaba on the Red Sea. If constructed, the pipeline would initially carry up to 1 million bbl/d, with over 100,000 bbl/d available for use inside Jordan. The plan also calls for a natural gas pipeline to run along the same route as the oil pipeline, with up to 100 million cubic feet per day (MMcf/d) being allocated to help meet Jordanian demand.
• The Arab Gas Pipeline (AGP)—which runs through Jordan from Egypt—is the principal source of Jordanian natural gas imports, although volumes fell dramatically in 2011 as a result of unrest in the Sinai Peninsula (from 89 Bcf in 2010 to 29 Bcf). Initial estimates indicate that Jordan boosted oil imports (particularly fuel oil, which is used in power generation) by more than 25 percent in 2011 to help make up for the loss of natural gas volumes from the AGP.
• Exploration for hydrocarbon-based energy resources is proceeding slowly in Jordan, but several major international energy companies have interests in the country. Exploration near Jordan's eastern border with Iraq and in the areas around the Dead Sea could lead to additional discoveries, but in the short term Jordan will continue to rely on energy imports and a nascent renewable energy sector to meet domestic energy demand.

Analysis Last Updated: March 2013