Can Kuwait get its oil strategy back on track?

Can Kuwait get its oil strategy back on track?

WASHINGTON: The Arab Gulf States Institute in Washington, in partnership with Reconnaissance Research, has published a groundbreaking study titled “Can Kuwait Get Its Oil Strategy Back on Track?” This collaborative research offers a comprehensive review of the obstacles and opportunities that lie ahead for Kuwait’s oil sector amidst the global surge in oil demand due to Russia’s invasion of Ukraine.

According to the report, despite oil being the lifeline of the Kuwaiti economy, Kuwait has struggled to take advantage of the heightened oil demand. Notably, the Kuwait Petroleum Corporation (KPC) failed to meet its oil exploration and production capacity targets. Additionally, the Al-Zour refinery project has encountered significant delays, leading to billions of dollars in unrealized revenue. This, coupled with an accelerating global shift away from fossil fuels, raises concerns about the potential for untapped hydrocarbon resources remaining unused.

The study also found an apparent reluctance among Kuwaiti officials to transparently discuss or address the reasons behind the KPC’s missed targets. A series of potential factors – including opaque goal setting, inconsistent implementation mechanisms, and inadequate financing and staffing – have been identified as possible contributors to this slowdown in oil production. Getting Kuwait’s oil strategy back on track will necessitate a