• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 2 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents * Too late now
  • 8 hours Russia Accuses U.S. Of Stoking Tensions With Missile Test
  • 7 hours OPEC will consider all options. What options do they have ?
  • 2 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 6 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 3 hours TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
  • 11 hours With Global Warming Greenland is Prime Real Estate
  • 6 hours What to tell my students
  • 2 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 21 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 19 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 15 hours Get First Access To The Oilprice App!
  • 4 hours Flaring is at Record Highs in Texas
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Is Kuwait’s $500 Billion Oil Plan Overoptimistic?

Kuwait’s oil minister is skeptical about the need—and the ability—of the state oil company to spend close to US$500 billion on an expansion program that should run until 2040, Reuters reports, citing local media.

Khaled al-Fadhel said he was not against the expansion as such, but added that he believed the projected US$495 billion (150 billion dinars) to fuel this expansion are “optimistic.”

Kuwait, along with the UAE and Saudi Arabia, contributes half of OPEC’s total, Wood Mackenzie’s chief analyst Simon Flowers noted in a recent article for Forbes, adding that oil industry expenditure in the three countries has remained relatively stable in the last few years despite the downturn.

Between 2014 and 2018, Flowers said, the combined upstream investment of Kuwait, the UAE, and Saudi Arabia had gone down by 19 percent, from US$83 billion to US$67 billion, while global industry investments fell as much as 40 percent during the same time.

Kuwait’s total production capacity currently stands at 3.15 million barrels of crude from wholly owned fields, but plans are to boost this to 4 million bpd by 2020 and 4.75 million bpd by 2040.

Meanwhile, production, however, is far from this capacity. In December, the country produced 2.8 million bpd of crude oil, which was higher than what it pumped in November, at 2.77 million bpd. Despite the increase, the oil minister, who was only appointed recently, said Kuwait was committed to the production cuts, which should take off some 3 percent of its daily output off the supply chain.

Al-Fadhel said, in his first public comments after his joining the Kuwaiti cabinet, that he expected the oil market to stabilize soon, with demand for the commodity healthy, in spite of growing worry about the global economy.

"The oil market is in a better place today than it was a few years ago," the official said as quoted by Saudi Asharq Al-Awsat, noting the “unprecedented” level of cooperation among so many large producers.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play