With oil still very much the backbone of its economy, Kuwait is looking to expand production. State-owned Kuwait Petroleum Corporation (KPC) has approved $90bn worth of spending on the oil and gas industry up to 2015. Indeed, gas has sizeable potential, since Kuwait currently produces less than 1% of its proven reserves of natural gas. Increasing this amount will translate into both financial and environmental benefits, reducing dependence on more costly liquid fuels. Diversification is another key domestic policy; plans have been announced to build four 1000-MW nuclear reactors by 2022, and Kuwait has signed cooperation agreements with a number of countries. Solar power is also being examined to increase electricity generation capacity, both as part of Kuwait’s diversification strategy and to meet rapidly rising demand for electricity.
This chapter includes an interview with Farouk Al Zanki, CEO, KPC.