Kuwait Oil and Gas Upstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Kuwait Oil and Gas Upstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Kuwait Oil and Gas Upstream Market is expected to grow at a CAGR of more than 3.5% during the forecast period. Sustained growth in the consumption of natural gas, petroleum, petrochemical products and developments of oil and gas exploration and production activities are the major drivers for the oil and gas upstream sector in Kuwait. However, volatile oil prices and government policies are expected to hinder the market growth during the forecast period.

Key Highlights

• Most of Kuwait’s production is from the onshore oilfields, due to which the onshore oil and gas segment is likely to dominate the market during the forecast period.
• The innovation of new technologies allows unconventional drilling that enhances oil & gas production. New business models and services are rapidly evolving and assisting to reduce the cost of operations in upstream oil & gas, which in turn promoting the market growth is expected to provide opportunities in the market in coming years.

Key Market TrendsOnshore 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.

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.

Competitive Landscape

Kuwait Oil and Gas Upstream Market is partially fragmented. Some of the key players in this market include Kuwait Petroleum Corporation, Kuwait Energy PLC, Schlumberger Limited., Baker Hughes Co., and Saudi Arabian Oil Co.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.