• 2 days Shell Oil Trading Head Steps Down After 29 Years
  • 2 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 2 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 2 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 2 days Venezuela Officially In Default
  • 2 days Iran Prepares To Export LNG To Boost Trade Relations
  • 2 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 2 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 3 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 3 days Rosneft Announces Completion Of World’s Longest Well
  • 3 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 3 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 3 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 3 days Santos Admits It Rejected $7.2B Takeover Bid
  • 3 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 4 days Africa’s Richest Woman Fired From Sonangol
  • 4 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 4 days Russian Hackers Target British Energy Industry
  • 4 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 4 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 4 days Lower Oil Prices Benefit European Refiners
  • 4 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 5 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 5 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 5 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 5 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 5 days OPEC To Recruit New Members To Fight Market Imbalance
  • 5 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 5 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 6 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 6 days GE Considers Selling Baker Hughes Assets
  • 6 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 6 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 6 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 6 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 6 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 9 days The Oil Rig Drilling 10 Miles Under The Sea
  • 9 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 9 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 9 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
Alt Text

Can Russia Break Its Oil Dependence?

Russia’s economic growth is struggling,…

Alt Text

OPEC Concedes That U.S. Shale Won’t Die

OPEC has significantly adjusted its…

Alt Text

Did Oil Markets Overreact To The Saudi Purge?

Oil markets responded dramatically to…

Despite Low Oil Prices, Kuwait Plans To Invest $42 Billion By 2022

Iran Kuwait Offshore Field

Kuwait’s state-run oil company is planning US$42 billion in investments by 2022, as the country pursues a three-fold strategy to increase oil production, expand its refineries and flesh out a clean fuels project.

Speaking at an oil committee meeting on Wednesday, Kuwait National Petroleum Corporation’s (KNPC) officials said investments would focus on expanding two key refineries—Mina Al Ahmadi and Mina Abdullah.

KNPC officials also touted the country’s Clean Fuel Project (CFP), which they said was already more than half complete and should be 75 percent complete by the end of this year. Related: Oil Prices Take A Step Back As Dollar Appreciates

It all fits into Kuwait’s apparent policy of spending extravagantly in the middle of an oil price slump, that is now easing.

A senior Kuwaiti official was quoted on Thursday as saying that Kuwait is "spending as much as possible" to boost economic growth in an atmosphere of depressed oil prices.

But cuts are also in order. Finance Minister Anas Al-Saleh, also the acting oil minister, has told Bloomberg that the country is pursuing some austerity and other measures as well, including a reduction in utility subsidies, the introduction of corporate taxes, and merging of state entities. Related: The Newest Metric For Gauging Stock Performance In The Oil Patch

“We are determined to go forward and spend as much as possible on our economy and infrastructure,” Al-Saleh said in an interview with Bloomberg Television, adding that reducing the budget shortfall is also a priority.

Last week, a senior Kuwait Petroleum Corp official said the company planned to increase oil production by 44 percent to almost 4 million barrels a day in 2020. That was when Kuwaiti crude was trading at around $40 per barrel.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • G. V. FOREMAN on May 20 2016 said:
    Well the Arab "cat" is out of the bag. The Kuwait’s oil minister “praised OPEC’s strategy for pushing out US shale as successful”. By default, OPEC was OK with US shale production as long as the oil stayed IN the US. However, in 2014, OPEC saw a concerted effort on the part of US oil producers and explorers to amend the 1975 Energy Policy and Conservation Act (EPCA) allowing for the unfettered, unregulated export of US crude. From OPEC’s standpoint the euphemistic gloves were and still off. It is not entirely ironic that within three to four months of their, US oil interest lobbying effort, global oil prices began their precipitous drop, August 2014, the source of which was attributed to a global oil glut. One, at least this one, can’t help but wonder if this was a matter of reality, of convenience or perhaps a bit of both. The reality, from OPEC’s standpoint, plays out like this: a “dear” friend, the US, which for 40 years wrote off the global oil market, is now exporting crude onto the global market introducing and volatilizing the global crude market. Resolution, from OPEC’s standpoint, “create” an oil glut on a global bases, resulting in decreasing oil prices to the point that US oil exploration, development and expansion, specifically horizontal fracking, would no longer be economically viable.
    Granted, the strategy is a two edged sword resulting in a loss revenue for OPEC members. However, the result for OPEC will be maintained market share simultaneously decimating the US fracking energy. From OPEC’s standpoint, the strategy was and is a “win-win” situation. For U.S. energy concerns, it is "back to the drawing board" and cut what "we" can, where "we" can, as much as "we" can, in order to maintain operations cash flow.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News