Statements made by the Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al-Ghais, during the “ADIPEC” energy sector conference in Abu Dhabi, align with the recommendations of local oil experts.
They emphasize the need for increased investment in Kuwait’s oil and gas sector to boost production. These experts advocate for raising Kuwait’s oil production from 2.8 million barrels per day to over 3 million barrels, with a long-term goal of reaching 4 million barrels per day by 2040.
“Al-Hayat” gathered insights from these experts, including Dr. Ali Al-Hababi, former oil advisor, who stresses the importance of expanding factories that rely on oil derivatives and increasing Kuwait’s share in OPEC to meet global oil demand. He notes that the era of oil remains significant, especially with increasing demand, and Kuwait must capitalize on this period before global oil demand declines, as countries explore alternative energy sources like electric vehicles. Al-Hababi also underscores the importance of diversifying income sources to reduce reliance on a single commodity.
Financial analyst Muhammad Ramadan insists that Kuwait should raise its OPEC production share to over 3.2 million barrels per day by the end of 2024, in line with the recent statements by the Oil Minister. He believes Kuwait’s ability to produce 4 million barrels per day is achievable but requires substantial expansion of oil investments, similar to Saudi Arabia’s significant investments in the oil sector.
Ramadan finds the Minister of Oil’s statement regarding a $300 billion investment by 2040 modest and calls for more substantial oil investments.
Legal financial analyst Salem Al-Hamoud suggests utilizing financial surpluses from higher oil prices to increase oil investments, particularly in petrochemical industries. He emphasizes Kuwait’s right to demand an increased OPEC share but asserts that the Ministry of Oil and its subsidiaries should advocate for expanding drilling rigs and leveraging financial surpluses to enhance various industries.
Kuwait Petroleum Corporation aims to reach a sustainable crude oil production capacity of 4 million barrels per day by 2035 and maintain it until 2040, including the divided zone.
In the refining sector, it aims for a maximum refining capacity of 1.6 million barrels per day in 2025, with a focus on processing heavy Kuwaiti oils in local refineries. The petrochemical industry is aggressively expanding, targeting 14.5 million tons annually by 2040, with a considerable share coming from subsequent transformative products.
This comprehensive strategy aims to strengthen Kuwait’s position in the global energy market.
