Capital expenditures (capex) on oil industries in Kuwait are estimated at USD 100 million over the coming five years, in line with the strategic orientations of the oil sector, Minister of Oil and Minister of State for National Assembly Affairs Ali Saleh Al-Omair revealed here on Wednesday.
Despite low oil prices, the atmosphere should be alternated into a more optimistic and positive one, devoting efforts to serve our peoples, Al-Omair told the opening session of the first Petroleum Economist Hydrocarbons Strategy Forum that kicked off here today.
He pointed to the huge challenges of the oil industry, as demand is falling in some markets and slowing in emerging ones, amid a growing pace of competition due to oversupply.
Oil prices have been decreasing, after the relative stability over the past years, the Minister said. He stressed the dire need for cooperation on all levels to secure power security and stability on markets.
In spite of the severe decline in oil prices, Kuwait insists on speeding up the pace of work in the grand projects in line with the strategic orientations of the Kuwait Petroleum Corporation (KPC), as part of the responsibility to meet power needs and guarantee power security, Al-Omair said.
"We (in Kuwait) believe that expansion in petrochemicals at home and overseas to realize integrity with the refining industry, secures stability of revenues, and helps make the utmost benefit from the crude in a way that alleviates impact of price fluctuations," the Minister told the session.
There is no OPEC or non-OPEC attempt to reduce production, Omani Minister of Oil and Gas Mohammad Al-Rumhi. He hinted to differences among OPEC members on the issue.
On the impact of falling oil prices on Oman's production, Al-Rumhi stressed that the Sultanate could withstand the decline through 2015.
But in case the trend carries on for more years, Oman and other countries will be impacted and will have to amend their plans of production, he noted.
For his part, Iraqi Oil Minister Adel Abdul Mahdi underlined the fact that hydrocarbons provide the world with about 80 percent of power, while other sources, such as solar and nuclear powers offer less than 20 percent.
He cited statistics to show that fossil fuels will remain the major source of energy for long years to come, referring to rising demand on oil and gas, expected to hit 110 million barrels daily in 2025.
The one-day Forum, held under "Cooperation: The Gulf 's new imperative", is organized by the Petroleum Economist magazine and co-hosted by KPC.
It provides a platform to discuss emerging trends in hydrocarbon production and use in the region and explore how governments are using the sector to diversify and develop their wider economies.