Kuwait’s upstream oil activities and crude oil exports are the central pillars of the country’s economy. In recent years the government has embarked upon an economic diversification drive to reduce vulnerability to oil price volatility and generate sustainable long-term growth. Renewable energy production is also targeted for expansion as Kuwait works towards fulfilling its climate commitments,…
The energy transition continued apace in 2022 despite Russia’s invasion of Ukraine in February of that year, ongoing disruptions to supply chains and inflationary pressures – all of which translated into high energy prices around the globe. However, sustained high prices may mark an inflexion point in shifting the global energy system away from a dependence on hydrocarbons and towards lower-cost…
Kuwait’s upstream oil activities and crude oil exports are the central pillars of the country’s economy. In recent years the government has embarked upon an economic diversification drive to reduce vulnerability to oil price volatility and generate sustainable longterm growth. Nevertheless, infrastructure expansion works are taking place, or have recently been completed, at each stage of the hydrocarbons…
Interview:Ahmed Jaber Al Eidan What are the challenges and opportunities in scaling up non-associated gas production in Kuwait? AHMED AL EIDAN: Expanding non-associated gas production represents a strategic shift towards diversifying domestic energy resources. Non-associated gas production reached 562m standard cu feet per day and will have a major boost when new Jurassic production facilities…
High global oil prices have enabled Kuwait to maintain a trade surplus despite the domestic political changes observed in recent years, measuring a GDP growth of 8.9% in 2022. Although 2023 saw the country’s GDP contract by 0.6% amid global headwinds, diversification efforts guided by New Kuwait 2035, new infrastructure developments in and beyond the hydrocarbons sector, and a push for privatisa
Despite predictions of declining hydrocarbon consumption, significant demand remains due to economic transformations and disruptive events like the Covid-19 pandemic and the Russia-Ukraine conflict. However, underinvestment in new production and regulatory challenges may affect the oil and gas industry. Investors and non-financial partners are seeking direct engagement with oil companies to assess…
To address one of the highest rates of per capita energy consumption globally, the government of Kuwait is taking a multi-pronged approach involving the reduction of subsidies following the rollout of incentives for green energy solutions and national energy efficiency initiatives in 2016-17. Emir Sheikh Sabah Al Ahmed Al Jaber Al Sabah first announced a target in 2012 to increase domestic energy production…
After opening 2022 at around $78 per barrel, Brent crude prices rose sharply over the next few months to surpass $127 on March 8 – the highest price in 14 years, driven in part by Russia’s invasion of Ukraine. Prices remained elevated throughout much of the year, although they had returned to early January levels by early December amid growing fears of a global recession and weakening demand. The…
As hydrocarbons producers reap sustained revenue from high global prices, national oil companies (NOCs) in the Gulf are accelerating investment in carbon capture, utilisation and storage (CCUS); hydrogen; and cleaner sources of energy to make their activities less carbon-intensive and support the energy transition. Gulf NOCs’ low-cost production advantages and massive hydrocarbons resources mean…
