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Energy sector investments in Qatar and Kuwait

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Jason Morgan Investment provides you with Some energy sector investments in Qatar and Kuwait. in the category of stocks producing energy. Energy sector investments in Qatar and Kuwait is a category of stocks that relate to producing or supplying energy. In addition, the energy sector or industry includes exploration and development of oil or gas reserves, oil and gas drilling, and refining.

Energy sector investments in Qatar

Energy in Qatar is simply production, consumption, and policies of the State of Qatar. Firstly, the International Monetary Fund ranked Qatar as having the fifth highest GDP per capita in 2016 with a population of 2.421 million inhabitants. Similarly, in 2014, oil and natural gas production made up 51.1% of Qatar’s nominal GDP. Thus, Qatar has a worldwide ranking of energy sectors investment production and exports in both crude oil and natural gas. In proportion to its relatively small population. Secondly, Qatar was a member of the Organization of the Petroleum Exporting Countries (OPEC) until their departure. Since 2007, natural gas production in Qatar has significantly increased and is the primary fuel chosen for energy consumption within Qatar. In 2014, Qatar ranked as the fourth highest natural gas producer worldwide. Thirdly, Qatar’s energy consumption in 2016 was 34.00 billion kilowatt-hours (kWh), which is an average of 15,056 kWh per capita.

Crude oil

Similarly, Qatar’s exploration of the oil market began around 1923 when its own pearl diving market took a hit. In addition, Qatar’s first oil discovery was made in the late 1930s with oil deposits found in the Dukhan field. Since then, Qatar claims to have 1.5% of global oil reserves, while producing 2% of the global oil economy. Also, In 2015, Qatar was ranked as the 17th top producer of crude oil worldwide at approximately 1.532 million bbl/day. In 2013, Qatar also ranked as the 11th top exporter of crude oil at an approximate 1.303 million bbl/day. Moreso, with a high production of crude oil, Qatar is one of the few countries that have little crude oil dependence on other countries for domestic energy consumption. To illustrate the following table shows how much oil each sector of Qatar’s economy consumes in 1000 tonnes in the year 2014. Hence, how all of the oil products used within in Qatar are from refined petroleum sources.
Qatar Oil Consumption by Economic Sector in 2014 (in 1000 tons)
Liquefied Petroleum Gases Motor Gasoline Gas/Diesel
Residential 113 0 0
Transport 0 1676 2792
Non-Energy Use 749 0 0
Thus, the sectors of the economy which consume the most oil-based fuels for energy usage are transport and residential. This is due to Qatar’s limited resources related to agriculture, forestry, and fishing since it has primarily desert terrain.

Natural gas

Accordingly, Qatar was the 7th top producer of natural gas (2.9%) in the world, exceeding Algeria (2.6%), the Netherlands (2.5%) and Indonesia (2.5%). As a result, 75% of the natural gas production was exported in 2009 (67/89 bm3). The energy content is high.

Solar power

Energy sector investments in Qatar and KuwaitHarnessing solar power has become an important objective for Qatar in recent years. By 2030, it is believed that Qatar has set the goal of attaining 20% of its energy from solar power. The country is well-positioned to capitalize on photovoltaic systems. As it has a global horizontal irradiance value of approximately 2,140 kWh per square meter annually. Furthermore, the direct irradiance parameter is roughly 2,008 kWh per square meter annually. Implying that it would be able to benefit from concentrated solar power as well. Energy sector investments in Qatar Foundation has been active in helping Qatar achieve its solar power goals. It established Qatar Solar, together with Qatar Development Bank and German company SolarWorld. They embarked on a joint venture resulting in the creation of Qatar Solar Technologies (QSTec). In 2017, QSTec commissioned its polysilicon plant in Ras Laffan, with a total capacity of 1.1 MW of solar power. Qatar signed a deal with Total and Marubeni in January 2020 to build a solar power plant that could produce 800 megawatts of electricity. The plant is being built in Al Kharsaah at a cost of $467 million and is expected to be completed by this year 2022.

Electricity

Qatar’s electricity supply
Energy in Qatar
Capita Prim. energy Production Export Electricity CO2-emission
million TWh TWh Mt
2004 0.78 210 883 667 12.3 38.6
2007 0.84 258 1,198 930 14.7 48.5
2008 1.28 281 1,452 1,161 20.1 53.9
2009 1.41 277 1,628 1,338 23.0 56.5
2010 1.76 262 2,025 1,748 26.4 66.1
2012 1.87 387 2,457 2,043 30.1 71.4
2012R 2.05 441 2,563 2,103 32.6 75.8
2013 2.17 467 2,605 2,109 32.5 72.4
Change 2004-10 126% 25% 129% 162% 114% 71%
Mtoe = 11.63 TWh.2012R = CO2 calculation criteria changed, numbers updated
From 2007 to 2010 energy export of Qatar have increased from 930 TWh to 1,748 TWh. In three years population growth was from 0.84 million to 1.76 million persons.
Moreso, As of early 2022, Energy sector investments in Qatar were on the threshold of major expansion plans. Although operations surrounding the North Field Expansion have been postponed until at least 2023. Yet upon commencement of the project, the country’s total output of liquified natural gas and polyethylene is predicted.
Energy sector investments in Kuwait are mainly primary energy are oil and natural gas.
Energy investment in Kuwait has over 500 sectors with a 53% total return (price plus dividends).
Though oil-price growth shouldn’t be nearly as dramatic.
Although Kuwait has a project at hand to invest over USD 100 billion between 2018 and 2023 in the oil and gas industry to boost production.

Crude oil

The country produces 1 million barrels of oil per day of which 15% are used locally.
The surplus of oil is exported.
In addition, this is due to rapid development.
Kuwait will be forced either to increase oil production or reduce exports.
The per capita consumption of electricity increased from 1473 kWh in 1960 to 9255 kWh in 1985.
If this situation continues,  Reduction of exports will affect the standard of living in Kuwait.
We assess the energy in Kuwait and discuss other alternative resources that are available, e.g., nuclear, wind, and solar energy.
We also introduce the concept of coupling a large solar pond to a 150 MWe power plant as a measure to reduce dependence on oil.
At the same time, detailed economic analysis is carried out comparing hybrid, conventional, and ORC engine power plants.
In addition, Kuwait is the sixth-largest proven oil reserve in the world. And an industry that dates back to the early days of oil and gas dominance in energy. At the same time, Kuwait is among the world’s principal hydrocarbons powers. Yet, given the lower oil prices seen in global markets in recent years. Lastly, it is been said that the New Kuwait 2035 development plan comes at a critical time in terms of improving the state’s competitiveness of foreign direct investment.

Natural gas

Firstly, Kuwait has a prosperous economy. Secondly, The oil and gas sector accounts for about 40 percent of its gross domestic product and about 92 percent of export revenues. Moreover, apart from massive oil reserves, Kuwait also has substantial reserves of natural gas. Due to the massive size of its natural gas reserve, Kuwait is considered one of the top 20 leading natural gas producers in the world. In the Middle Eastern region, Kuwait’s natural gas reserves are considered to have the 7th highest natural gas reserves. Furthermore, the Kuwait Petroleum Corporation is one of the most dominant companies in the country, and it owns all the gas reserves in the country. Although the Kuwaiti people consume vast quantities of natural gas, and experts believe that the demand for natural gas in the region is much higher than Kuwait’s current production.

Other Natural investment sectors in Kuwait

Arable Land In Kuwait

Arable land is one of the most critical natural resources in Kuwait. A study carried out in 2014 indicated that approximately 945 square miles of land in Kuwait were used for agricultural purposes. However, despite its importance, the agricultural sector in Kuwait has not had significant improvement because the nation is situated in a relatively dry area.

Livestock in Kuwait

Another primary natural resource in Kuwait is livestock. Some of the most commonly kept animals in Kuwait include cattle, sheep, and goats. Livestock keeping contributes significantly to the country’s agricultural output as its contribution was roughly 67%. Due to the low amount of water in the country, the government supplies the livestock farmers with water. Likewise, the Kuwaiti Ministry of Electricity and Water is responsible for supplying water to the livestock farmers.

Fish in Kuwait

Firstly, due to its position, Kuwait has access to large fishing grounds with a wide array of fish. Moreover, despite the availability of a variety of fish species, fishing only contributes a small portion to Kuwait’s gross domestic product. Secondly, most of the fish caught in Kuwait’s territorial waters are consumed locally by the Kuwaiti people. Thirdly, For instance, Large-scale fishing is primarily carried out by the United Fisheries of Kuwait. Apart from fishing in Kuwait’s territorial waters, the organization also fishes in international waters of the Indian Ocean, the Atlantic Ocean, as well as the Red Sea.

Minerals in Kuwait

Energy sector investments in Qatar and Kuwait also has vast quantities of minerals, which the country has been pursuing to diversify its economy. Cement production is one area the government has invested heavily in.

Economic Challenges faced by Energy sector investments in Kuwait

Kuwait faced some challenges mainly due to the impact of the war. The government implemented an ambitious recovery plan to restore Kuwait’s economic growth after the war. Lastly, the fluctuating price of oil in the international market is a significant challenge facing Kuwait. To Learn more about energy sector investments in Qatar and Kuwait please Get In Touch with us.
Material sector investments in Qatar and Kuwait

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