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Kuwait faces imminent oil capacity constraints

Wednesday, December 8, 2021

Significance

Capacity has fallen by around 15% over the past four years and is below the country’s official OPEC baseline. COVID-19 and difficult executive-legislative relations in 2020-21 have interfered with oil sector project delivery.

Impacts

  • As projects flounder, Kuwait will lose market share to regional rivals.
  • Restructuring the Kuwait Petroleum Corporation from eight operating companies to three may boost administrative efficiency.
  • Upstream operations are unlikely to be much affected by restructuring, given the dominance of Kuwait Oil Company.

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