A study by PFC Energy, the respected consultancy, shows world oil supplies might well fall behind growing demand in the long term as political factors limit production capacity increases in key producing nations.
The study, as reported in the Financial Times, describes how key national oil companies, Kuwait’s is one of them, are not making proper investment to insure sufficient oil supplies in the future. This is due to either not seeing the need to make such investments with the windfall from current fields or political factors preventing entry of technologically advanced international oil companies.
The report lists Kuwait and Russia as stagnant producers, on the other hand lists Saudi Arabia as an expanding producer. The report points to the political infighting preventing entry of international oil companies to Kuwait.
When will the political infighting end to bring about desperately needed assistance from international companies to develop our oil fields? While it is ambitious for national oil companies to be compared with international oil companies, why isn’t Kuwait’s KPC up to the standards of other national oil companies such as Saudi’s Aramco? Important questions without answers.