Energy & Utilities
From The Report: Kuwait 2022
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Kuwait is largely reliant on oil for exports, government revenue and GDP contribution. The country is therefore particularly sensitive to fluctuating global hydrocarbons prices and the long-term financial risks associated with the global shift towards lower-carbon sources of energy. Transitioning towards a more diversified and sustainable energy mix is an ongoing challenge for the country, as for much of the region, in light of the industry’s long-standing history and key contributions to the economy. A raft of ongoing energy projects seek to promote progress towards Kuwait’s goal of enhanced in-country value addition, as well as economic diversification and resilience to turbulent hydrocarbons prices, while also aligning the country with the international sustainability agenda. Increasing non-associated gas production, heavy oil production and crude oil processing are particularly compelling opportunities to meet Kuwait’s energy needs and align the country’s development with long-term goals.

This chapter contains an interview with Sheikh Nawaf Al Sabah, CEO, Kuwait Petroleum Corporation.

Articles from this Chapter

Overview

Fuelling change: As demand shifts to lower-carbon energy sources, the country is focusing on a diversified and sustainable energy mix
OBG
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Kuwait is largely reliant on oil for exports, government revenue and GDP contribution. The country is therefore particularly sensitive to fluctuating global hydrocarbons prices and the long-term financial risks associated with the global shift towards lower-carbon sources of energy. Transitioning towards a more diversified and sustainable energy mix is an ongoing challenge for the country, as for much of the region, in light of the industry’s long-standing history and key contributions to the economy. A…

Interview

Adding value: Sheikh Nawaf Al Sabah, CEO, Kuwait Petroleum Corporation (KPC), on boosting upstream and downstream capabilities
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Interview:Sheikh Nawaf Al Sabah What are the most attractive investment opportunities in the country’s oil and gas industry? SHEIKH NAWAF: As part of KPC’s 2040 strategic plan we aim to increase the production of oil to 4m barrels per day (bpd) and gas capacity to 4bn standard cu feet per day (scfd) by 2040. Achieving and sustaining these targets will be largely dependent on implementing a substantial capital investment programme to cover our upstream, midstream and downstream operations. Onshore…

Analysis

Powering the future: Incentive-driven solar, wind and hydrogen development plans are steering the uptake of cleaner energy sources
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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 from renewable sources to 15% of the total by 2030, at which time overall demand was projected…

Analysis

Decarbonisation solutions: The Gulf looks to carbon capture and hydrogen to drive the transition to clean energy production and net-zero emissions
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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 that CCUS can reduce emissions for the coming decades as the world continues to rely on oil and gas…

Analysis

Replenishable resources: Higher oil prices and the expected fiscal windfall are expected to catalyse investment in renewables
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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 US Energy Information Administration estimated that month that the average Brent crude price for…