Kuwait Oil & Gas Market Size, Industry & Opportunities 2031

Report Description

The Kuwait oil & gas market size was valued at USD XX Billion in 2022 and is anticipated to reach USD XX Billion by 2031, expanding at a CAGR of 3% during the forecast period, 2023–2031. The growth of the market is attributed to the rising production of oil and increasing demand for natural gas in the country.

Refining of petroleum crude oil includes processing & purifying of raw natural gas, and marketing and distribution of the products made from oil and natural gas. The products derived include asphalt, lubricants, waxes, fuel oils, natural gas, liquefied petroleum gas, gasoline, kerosene, jet fuel, diesel oil, and petrochemicals. The hydrogen sulfide removed in the refining process of crude oil and natural gas is converted into byproduct elemental sulfur.

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Companies are adopting the gas to liquid technology to reduce the pollution levels and to produce high quality petroleum products. The conversion of natural gas to high quality liquid products is done through gas to liquid technology. International support and investment in the oil & gas industry is growing the market. The companies are rearranging its operations and activities to recover from the covid-19 impact. 

The covid-19 pandemic affected the supply & demand of Kuwait oil & gas market. Decreasing supply of raw materials, lockdown across the country, and supply chain disorders forced manufacturers to close down production leading to unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.

Kuwait is a major oil supplier and a member of the OPEC consortium. Kuwait owns about 7% of the world's oil reserves and has current production capacity of about 3.15 million barrels per day. Kuwait Petroleum Corporation (KPC) declared its target to increase oil production, including the development of a heavy oil production facility with a capacity of 60,000 barrels per day.

KPC has announced a nearly $ 115 billion investment plan that will be implemented between 2015 and 2020 and is estimated to split equally between the upstream and downstream sectors. Existing refining projects include the clean fuel project, which modernize and expand the Mina Abdullah and Mina Al Ahmadi refineries.

Kuwait national petroleum company has awarded design, procurement, and contracting contracts with clean fuels with three international corporations. Kuwait planned to invest more than $ 100 billion between 2018 and 2023 in the oil and gas industry to increase production capacity by increasing investments for crude oil production from existing capacity of crude oil and natural gas production.

In addition, for natural gas, Kuwait could increase production from 200 million trillion cubic feet per day to several times during forecast period. Enhanced oil recovery method will improve the stream of remaining oil through the reservoir and is the first of its kind to be adopted in the Middle East, and this is projected to attract investment from many oil companies.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing demand for consumption of natural gas is expected to boost the market growth during the forecast period.

• Increasing demand of products from oil & gas industry owing to increasing investment and new refinery projects is major factors driving the market in the coming years.

• Government initiatives and policies to grow the oil & gas upstream industry are projected to fuel the market during forecast period.

• High cost of equipment and process used in the oil & upstream market is expected to restrict the market growth.

• Lack of awareness among people and delay in revision of petroleum act as major factors that can hamper the market growth during the forecast period.

• R&D investment and technological advancement in the techniques used in the oil & gas industry is projected to offer immense opportunities for the market players.

Scope of the Report

The report on the Kuwait oil & gas market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

The downstream segment is projected to represent a major market share

In terms of sector, the oil & gas market is segregated into upstream, midstream, and downstream.

The downstream segment is expected to represent a key share of the market during the forecast period owing to a serious review of Kuwait's refining and marketing sector is underway, following the award of long-delayed alZour refinery contracts and improvements to alAhmadi and Mina Abdullah's refineries, which are expected to accelerate the sector's downstream progress during the forecast period.

In addition, the $ 12 billion Kuwait clean fuel project is expected to be completed by mid-2020, and the $ 16 billion AlZour refinery will be partially operational on September 6, increasing the country's refining capacity.  A total of 16 new units are being built at the Mina AlAhmadi refinery under the CFP, and 14 new units are being built at the Mina Abdullah refinery.

On the other hand, the midstream segment is anticipated to expand at a rapid pace during the forecast period owing to the oil and gas midstream sector is an important transitional link between the upstream and downstream links of oil and gas.

During the market downturn, investment in this industry is expected to increase, and large companies are projected to perform well and geopolitics is laying pipelines. FPSOs, drilling ships, and other transportation operations support vessels. Investment in this area has also increased, while investment in mining and production has declined.

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