Boston, MA -- (SBWIRE) -- 03/19/2013 -- BMI View: Kuwait is set to experience a steady rise in oil output, reaching 3.6mn barrels per day (b/d) by the end of our forecast period in 2021, largely on the back from increased recovery from existing fields. However, over the same period, rising consumption will limit some of the gains in overall output. This is particularly true in the case of gas production, where despite an increase in domestic production to some 19.3bn cubic metres (bcm) by 2021, Kuwait will remain a net importer of gas as consumption continues to rise.

We highlight the following trends and developments in Kuwait's oil & gas sector:

- BMI forecasts Kuwaiti oil production to rise from an estimated 2.6mn b/d in 2011 to 2.9mn b/d by 2016, then over 3.6mn b/d by 2021. Northern oilfields, increased recovery of heavy oil, and efforts to maintain production at existing fields will underline the steady gains in output over our forecast period. Kuwait is also targeting additional output from new exploration, these volumes are more uncertain.
- The government continues to advance Project Kuwait, an ambitious scheme that will see some US$56bn invested in oil and gas projects to raise production to some 3.2mn b/d by 2015 and 3.65mn b/d by 2020. However efforts to secure greater participation from international oil companies' (IOCs) in Kuwait's upstream have consistently been undermined by bureaucratic and political gridlock from Parliament.
- Given the poor quality of Kuwait's non-associated gas reserves, foreign expertise will be especially important as the country seeks to raise domestic production and ease the import burden. Failure of the necessary investment to materialise poses downside risks to our forecasts for gas production, and with oil continuing to supply the majority of feedstock for electricity generation, failures to increase gas production could further undermine volumes available for more lucrative export.
- LNG imports could be supplemented by the re-activation of pipeline imports from Iraq (which have been suspended since 1990).
- Although Kuwait National Petroleum Company (KNPC) has announced that it will move ahead with the Al-Zour refinery, the long delays further underscore the country's challenging operating environment. Approval of the refinery and the Clean Fuels Project will allow Kuwait to significantly boost both production and exports of refined products, including low-sulphur diesel and Euro-4 gasoline.
- The outlook for Kuwait's downstream sector remains uncertain, after multiple years of delays to the Al- Zour facility and Clean Fuels Project. Although the recent awarding of project management contracts and regulatory approvals indicate the projects may be advancing, significant downside risk to our forecasts exists.

View Full Report Details and Table of Contents

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Energy research reports at Fast Market Research

You may also be interested in these related reports:

- Northern Oil & Gas, Inc. Oil & Gas Exploration and Production Operations and Cost Analysis - Q1, 2012
- Oil & Gas Capital Expenditure Outlook 2013
- Advantage Oil & Gas Ltd. Oil & Gas Exploration and Production Operations and Cost Analysis - Q1, 2012
- Forent Energy Ltd. Oil & Gas Exploration and Production Operations and Cost Analysis - Q1, 2012
- OJSC Rosneft Oil Company Oil & Gas Exploration and Production Operations and Cost Analysis – Q1, 2012
- Bonterra Energy Corp Oil & Gas Exploration and Production Operations and Cost Analysis – Q1, 2012
- ARC Resources Ltd. Oil & Gas Exploration and Production Operations and Cost Analysis - Q1, 2012
- Petrobank Energy and Resources Ltd. Oil & Gas Exploration and Production Operations and Cost Analysis – Q1, 2012
- FairWest Energy Corporation Oil & Gas Exploration and Production Operations and Cost Analysis – Q1, 2012
- Vero Energy Inc. Oil & Gas Exploration and Production Operations and Cost Analysis – Q1, 2012