SHALE oil production in the United States is projected to decline starting next year. From its peak of 13.5 million barrels per day in 2024, output is expected to drop by 200,000 barrels per day from 2026. This certainly comes as disappointing news for the current U.S. administration, which had hoped to maintain the country’s dominance in the global oil market and retain its status as a top producer for years to come, especially amid competition from major producers like Russia and Saudi Arabia. Adding to the administration’s challenges is its failure to achieve a key objective: lowering domestic oil prices. With U.S. production set to decline, the country will become increasingly reliant on foreign imports, even as domestic consumption continues to rise. The U.S. currently consumes approximately 20.5 million barrels per day and imports around 6.1 million barrels, with about 60% coming from Canada, 7% from Mexico, and the remainder from Saudi Aramco, Iraq, and other OPEC nations. 

The administration will also be disappointed by its continued failure in achieving its objective of reducing oil prices. The US will face a growing reliance on foreign imports, even as domestic consumption rises. Currently, the United States consumes approximately 20.5 million barrels of oil per day and imports about 6.1 million barrels daily, roughly 60 percent from Canada, seven percent from Mexico, and the remainder from Saudi Aramco, Iraq, and other OPEC countries. The current U.S. administration appears to be leaning toward continued reliance on fossil fuels, rather than fully committing to alternative energy sources, and encouraging further investment in oil and gas, without focusing on new alternatives. It is perhaps of the opinion that it is still too early to search for replacements for fossil fuels, especially given the goal of keeping energy prices low and avoiding the higher costs often associated with alternative energy.

The United States still holds substantial oil and gas reserves, and there is a growing push to ease permitting processes and open more federal land for exploration. The aim is to become a dominant force in global energy and reduce dependence on foreign oil, while keeping oil prices low as a cornerstone of U.S. energy policy Meanwhile, OPEC countries must begin thinking seriously about developing a long-term strategy that goes beyond oil. Some member states cannot continue relying on oil as their primary source of income, especially when more than 90 percent of their national revenue depends on it. With current low oil prices, many countries are being forced to borrow from international banks or consider monetizing parts of their oil assets, such as selling stakes in national oil companies, as Saudi Aramco has done. There is no harm in selling a small share, whether 5 percent or 15 percent, and it will not affect our “jewel in the crown,” as long as the country retains full control over its wealth and oil resources. Perhaps the choice could be selling assets, divesting ownership stakes, selling shares in international companies, issuing bonds, or simply borrowing. The final decision depends on overall economic factors, expected returns on investment, and the best financial strategies. Fortunately, there are multiple options, and Kuwait can certainly pick and choose the path that it considers is the best. Recently, the confl ict involving Iran caused global oil prices to surge above $75 per barrel in no time. This raises the question – how fragile are oil prices? In this context, OPEC may not need to take immediate action. Let the political situation take over. However, it is likely that the surge in oil prices is only temporary.

By Kamel Al-Harami
Independent Oil Analyst
 Email: [email protected]

KUWAIT CITY, June 14: As the start of the summer vacation coincides with the anticipated seasonal decline in real estate transactions, the value of transactions in the first week of June decreased by 48.6 percent or about KD70.37 million; while the number of transactions also declined by 40.3 percent (96 transactions) – a decrease of 56 transactions compared to the previous week. The newspaper obtained a copy of the weekly report on real estate transactions by the Real Estate Registration and Documentation Departments at the Ministry of Justice covering the period from June 1-4. It showed the registration of 96 real estate transactions worth KD74.457 million, compared to 161 transactions worth KD144.827 million in the last week of May. Private real estate transactions recorded a 31.8 percent decrease in number (35 transactions) and a 29.8 percent decrease in value (KD12.357 million) compared to last week.

The number of private transactions in the current week reached 75 transactions worth KD29.174 million, compared to 110 transactions worth KD41.531 million last week. Investment real estate transactions witnessed a sharp decline in the quantity and value of transactions compared to other real estate categories. The decline reached 66 percent in the number of transactions (29 transactions) and 59.1 percent in trading value (KD52.86 million), with a total of 15 transactions worth KD36.52 million, compared to 44 transactions worth KD89.39 million the previous week. In contrast, the market value of commercial transactions witnessed a growth of 16.3 percent (KD530,000) as the trading value reached KD3.25 million per transaction, compared to KD2.72 million per transaction during the previous week. Meanwhile, craft real estate transactions witnessed a 30 percent decrease in liquidity (KD175,000) compared to last week’s transactions. Despite recording five craft transactions this week – an increase of one transaction compared to last week, the value of real estate transactions this week reached KD5.51 million, compared to KD5.68 million last week

By Marwa Al-Bahrawi
Al-Seyassah/Arab Times Staff 

KUWAIT CITY, June 12: The Ministry of Electricity, Water and Renewable Energy intends to construct fuel lines feeding the Nuwaiseeb Power Plant for generating electricity and distilling water using two types of fuel — gas and liquefied petroleum gas (LPG). Sources explained that the fuel lines project is part of preparations for the Nuwaiseeb Power Plant, which is aimed at securing the electricity grid. Sources said this is one of the important future projects that will supply the grid with around 7,200 megawatts and 180 million imperial gallons of water in two phases — the first has a capacity of 3,600 megawatts. Sources stated that the project to construct fuel pipelines is expected to be tendered in the current fiscal year — under established procedures and regulations — as a limited and non-divisible public tender.

They added the project aims to meet the station’s growing need for various types of fuel; including the construction of the necessary pipelines for all types of fuel, and modernizing fuel receiver systems and pipelines to operate the station’s system and equipment; thereby, improving fuel efficiency. They indicated that the Nuwaiseeb station will operate under the ‘combined cycle’ system; which produces more energy with the same amount of fuel, reduces the amount consumed per unit, reduces emissions compared to the unit’s output, and enables future expansion and operation with more than one type of fuel.

By Mohammad Ghanem
Al-Seyassah/Arab Times Staff