Kuwait: Energy Security from the Middle East
Excellencies, distinguished guests, ladies and gentlemen, good morning.
In the beginning, I wish to congratulate the Qatari government as well as the organizers of World Petroleum Congress for this remarkable Industry conference.
For the last four years, the world has been going through a series of economic crisis, and today, the world economy - which is increasingly interdependent - is facing many uncertainties. These uncertainties raise some doubt about the level of growth in energy demand in the short to medium term. However, there is a fundamental fact; the world will need more energy and cleaner energy to achieve sustainable economic and social development in the long term especially in; Asia which is expected to be the main consuming center in the next 25 years. World energy demand is expected to be 34% higher in 2035, than in 2010. Despite the substantial growth in renewables, fossil fuels share will remain over 80% of the energy mix throughout the period to 2035. Oil's leading role in the energy mix will continue, however it will gradually fall with its share reaching 28% by 2035.
Excellencies,
To satisfy the growth in global oil demand, producers - mainly OPEC countries - need to expand their production capabilities. OPEC is committed to provide sufficient oil supplies to international markets. However, the oil and gas industry is facing an increasingly challenging environment and has to invest under uncertainty. Growing production from non-conventional sources, is contributing substantially to oil and gas supplies but it requires new technologies, which will be capital and energy intensive.
Excellencies,
Kuwait has been and will remain a secure and reliable supplier. As an oil exporter, Kuwait attaches great importance to global energy security and market stability. And I wish to emphasis that as a major resource owner, we are committed to meet growing global energy requirements.This is why we continue investing in various segments of our industry, to effectively contribute to overall market stability, world social and economic prosperity.
In recognition of our responsibility in pursuing this goal , we plan to expand our sustainable crude oil capacity to 3.5 million barrels per day by 2015, from current crude oil capacity which is in access of 3 million barrels per day, and then reach 4 million barrels per day by 2020 onwards. To achieve these production targets, we must overcome the challenges facing the Kuwaiti oil industry, which are significant. We have to secure adequate gas to the domestic growing electricity requirements, and develop the gas and heavy oil resources in Kuwait, while supplying clean fuels to the international markets.
To meet these targets, we are undertaking major investments in enhanced oil recovery, and the development of new reservoirs and production facilities, we also need effective collaboration with international oil companies to develop our gas and heavy oil reservoirs. Our domestic upstream plans will require major capital investments of around 67 billion Kuwaiti Dinars over the next twenty years until 2030.
Furthermore, to meet global and domestic markets requirements, we plan to raise our downstream capacity locally and internationally. KPC’s domestic refining capacity will be raised to 1.4 million barrels per day by 2016. We will operate all domestic refineries with high standards of operational excellence, and maximize integration of refining and petrochemical operations. On the international level, we are currently planning investment opportunities through partnership, while focusing on high growth market especially Asia.
Kuwait Petroleum Corporation is continuously seeking greater operational efficiency and new technologies. As one of the initiatives in our greenhouse management strategy, we are currently undertaking pilot projects to introduce solar energy applications in its operations to meet part of its energy requirements replacing partially hydrocarbons. To this end, the oil sector has embarked on establishing research and technology center.
In Kuwait, we wish to be an attractive place to conduct business in the energy sector, and so we hope to develop a more world class partnerships between KPC and the international industry, as well as reputable scientific research institutions that would facilitate the exposure of KPC for technology, skills and excellence.
Distinguished Audience
In the end, I would like to conclude that despite the challenges that we expect going forward; our future strategy and plans will provide the necessary solutions to overcome them, and ensure the prosperity and the welfare of our people as well as contribute to global energy security.