Oil industry of Kuwait
Encyclopedia
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
has a proven crude oil reserves
Oil reserves
The total estimated amount of oil in an oil reservoir, including both producible and non-producible oil, is called oil in place. However, because of reservoir characteristics and limitations in petroleum extraction technologies, only a fraction of this oil can be brought to the surface, and it is...
of 104 billion barrels (15 km³), estimated to be 10% of the world's reserves. Kuwait's oil reserves
Oil reserves
The total estimated amount of oil in an oil reservoir, including both producible and non-producible oil, is called oil in place. However, because of reservoir characteristics and limitations in petroleum extraction technologies, only a fraction of this oil can be brought to the surface, and it is...
are the fourth largest in the world and the Burgan Field
Burgan Field
The onshore Burgan Field in the desert of southeastern Kuwait is one of the world's largest and richest oil fields.-Discovery:After its discovery in February, 1938, the USA and UK-owned Kuwait Oil Company began commercial oil production at Burgan in 1946. The oil field is so rich that it is one of...
is the second largest oil field
Oil field
An oil field is a region with an abundance of oil wells extracting petroleum from below ground. Because the oil reservoirs typically extend over a large area, possibly several hundred kilometres across, full exploitation entails multiple wells scattered across the area...
. Kuwait is the world's eleventh largest oil producer and seventh largest exporter. Kuwait's oil production accounts for 7% of world-wide oil production.
Since the government of Kuwait owns the oil industry, it controls most of the country's economy
Economy of Kuwait
Kuwait is a small, relatively open economy with proven crude oil reserves of about , i.e., about 9% of world reserves. Petroleum accounts for nearly half of GDP, 90% of export revenues, and 95% of government income. Kuwait lacks water and has practically no arable land, thus preventing development...
; in all, about 75 percent of the GDP. Kuwait’s oil exports vary depending on internal needs – almost all of Kuwait’s energy is derived from oil – and on international demand and prices and production quota
Production quota
A production quota is a goal for the production of a good. It is typically set by a government or an organization, and can be applied to an individual worker, firm, industry or country. Quotas can be set high to encourage production, or can be used to limit production to control the supply of goods...
s fixed by the OPEC
OPEC
OPEC is an intergovernmental organization of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings...
, of which Kuwait is a member. OPEC’s quotas, however, are difficult to enforce, and Kuwait and other countries have been accused of violating them. In 2005, oil production was 2.418 million bbl/day (2005 est).
Kuwait's chief oil companies are:
- Kuwait Petroleum CorporationKuwait Petroleum CorporationKuwait Petroleum Corporation is Kuwait's national oil company, headquartered in Kuwait City. It was founded on January 27, 1980 as an umbrella company, integrating KOC, KNPC, KOTC and PIC and effectively placing them under government control....
(KPC) : Holding group responsible for international marketing. - Kuwait Oil Company (KOC) : Crude oil exploration and development company.
- Kuwait National Petroleum CompanyKuwait National Petroleum CompanyThe Kuwait National Petroleum Company is the national oil refining company of Kuwait. Established in October 1960, KNPC handles the responsibility of oil refining, gas liquefaction, and distribution of petroleum goods within the local market.- History :...
(KNPC) : Runs oil refineries across Kuwait. - Petrochemicals Industries Company (PIC) : Petrochemical and fertilizer manufacturer.
- Kuwait Petroleum International (KPI, also known as "Q8Q8Q8 is the Kuwait Petroleum CorporationQ8 may also refer to:* Q8 * Quad 8, the Quadraphonic version of Stereo 8* Q , 4th series of Spike Milligan's TV comedy sketch show...
") : Runs refining and marketing business overseas. - Kuwait Foreign Petroleum Exploration CompanyKuwait Foreign Petroleum Exploration CompanyKuwait Foreign Petroleum Exploration Company was established in 1981 under the Kuwait Petroleum Corporation as a subsidiary company...
(KUFPEC) : International oil exploration company. - Equate petrochemical company (EQUATE) : A petrochemical company formed by PIC and Dow Chemical.
- Petroleum Training Centre (PTC) : Responsible for all training and career development within the KPC companies.
- Kuwait Oil Tanker Company (KOTC) : Crude oil shipping
- Kuwait Aviation Fueling Company (KAFCO) : Aircraft fuel
- Kuwait Gulf Oil Company (KGOC) : Oil and gas exploration and production in the Saudi-Kuwaiti neutral zoneSaudi-Kuwaiti neutral zoneThe Saudi–Kuwaiti neutral zone, also known as the Divided Zone, was an area of 5,770 km² between the borders of Saudi Arabia and Kuwait that was left undefined when the border was established by the Uqair Convention of December 2, 1922....
; joint venture with Saudi ArabiaSaudi ArabiaThe Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
. - Oil Sector Services Company (OSSC) : Handles all construction projects, maintenance, security, fire-fighting, and medical services to all oil sector employees and their families.
- Oil Development Company (ODC)