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.