Market Trends of Kuwait Oil and Gas Upstream Industry
This section covers the major market trends shaping the Kuwait Oil & Gas Upstream Market according to our research experts:
Onshore Segment to Dominate the Market
- Kuwait, an Organization of the Petroleum Exporting Countries (OPEC) member country, is one of the world's top producers and exporters of crude oil. Kuwait's total oil proven reserves amount to an estimated total of 101.5 thousand million barrels in 2018. The country's petroleum export revenue accounts for more than half of its GDP and 95% of government income.
- Nearly all of Kuwait's crude oil production comes from its onshore fields. As of March 2020, the total onshore rig count of Kuwait has reached 50.
- Onshore production in the Partitioned Neutral Zone (PNZ) centres on the Wafra oil field, began producing oil at the end of 1953. Wafra is the largest of the PNZ's onshore fields, with approximately 4.9 billion barrels in estimated recoverable reserves, and is considered a super-giant heavy field.
- In Kuwait, future oil and gas consumption is expected to increase due to key factors such as a strong economy, population growth, and fuel economy. The dependence on oil and gas is further expected to increase as the country's infrastructure continues to heavily rely on petroleum-based products. Kuwait also has plans to raise its crude oil production capacity in the coming year.
- The demand for drilling services and equipment is expected to be strong due to Kuwait's goal of increasing its oil and gas production capacity over the next coming years by developing heavy oil fields and offshore.
Understand The Key Trends Shaping This Market
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Natural Gas is Expected to Drive the Market
- Kuwait increased efforts to explore and develop its non-associated natural gas fields, which makes up a small portion of its natural gas production.
- At the end of 2018, Kuwait holds natural gas total proved reserves of 1.7 trillion cubic metres with an R/P ratio of 97.
- Greater natural gas production is expected to increase Kuwait's feedstock for its struggling electricity sector, which frequently fails to generate enough electricity to meet peak demand. Kuwait's share of natural gas use in its primary energy consumption has increased.
- In 2018, the production of natural gas has reached 15 million tonnes oil equivalent (Mtoe) with a growth rate of 7.6% compared to the previous year.
- The market players are also undertaking several investment plans to cater to the increasing demand for oil and gas products. Government policies and support related to the exploration and production of oil and gas are playing a major role in the industry and encouraging the companies to boost Kuwait oil and gas investments.
