Energy
From The Report: Kuwait 2014
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As new discoveries are being made in the north of the country, and as the industry develops increasingly sophisticated extraction technologies, Kuwait’s oil revenues should see a new boost. The authorities are also seeking to develop the country’s natural gas resources, as these could provide a valuable alternative for electricity generation. Although the kingdom was ranked as the world’s sixth-largest oil producer in 2013, the government still has its eyes set on energy diversification, with solar energy being the most promising option.

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Overview

Moving forward with new projects while increasing private involvement
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With more than 100bn barrels of proven oil reserves, new discoveries in the north of the country and increasingly sophisticated extraction methods ready to be implemented, it is expected that oil revenues will continue to be Kuwait’s most significant economic pillar well beyond 2014. Kuwait ranked as the world’s sixth-largest oil producer in 2013, and despite having the second-smallest land area of all OPEC countries, the kingdom exports the third-largest volume of oil among members. Focussed…

Analysis

Developing expertise with the help of international oil companies to raise output
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As the Kuwaiti government moves to invest billions in upgrading and expanding its oil production facilities, it has targeted an ambitious increase in crude output, with plans to produce 4m barrels per day (bpd) by 2020. New demand for enhanced oil recovery (EOR) in the Greater Burgan area has already facilitated further participation by international oil companies (IOCs). The nation’s vast, technically challenging northern fields hold high future production potential, with Kuwait’s human resources…

Analysis

Upgrading the state’s refineries to improve quality and boost exports
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Following shutdowns caused by power shortages in early 2014, Kuwait’s refineries are poised to undergo improvements in the year via multibillion-dollar upgrades and new facilities led by the private sector, including construction of the world’s largest oil refinery, which will substantially boost both exports and revenues. At the same time, refined products will soon be cleaner and of higher quality, with the Clean Fuels Project slated to improve export quality and reduce the environmental impact…

Analysis

Enlarging the grid with an array of new power projects
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In addition to ambitious production and refinery expansion plans, the Kuwaiti government is also moving to rapidly enlarge and upgrade its power grid. With recent refinery shutdowns highlighting the country’s energy vulnerabilities, and domestic consumption of heavily subsidised electricity continuing to rise, the country’s power grid is in urgent need of new supply sources. The efforts of the Partnerships Technical Bureau (PTB) to roll-out power projects under a fledgling public-private partnership…

Analysis

Expanding renewables capacity to meet growing demand
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Kuwait’s vast oil wealth has allowed its leadership and citizenry the luxury of inexpensive, readily available electricity, with energy demands traditionally met using oil-fired power stations. Oil consumption for power generation previously comprised a relatively small portion of overall crude production and did not make a major dent in oil revenues. However, with an expanding population, sustained world oil prices of more than $100 per barrel, and increased concern about government spending and…