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Kuwait: Oil wealth and the need to rethink energy diplomacy

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21.09.2026

Kuwait exports oil, yet relies on imported gas and regional electricity trade to power its economy. This dual position demonstrates why hydrocarbon wealth does not automatically deliver energy security. Oil revenues provide purchasing power; reliable supply also requires functioning power plants, fuel-receiving infrastructure and dependable transport routes.

On 2nd April 2025, rising demand and generation capacity restricted by maintenance prompted temporary power cuts in some industrial and agricultural areas. Reuters reported that the outages lasted less than two hours. The problem was not oil underground, but the temporary inability to turn available resources into deliverable electricity.

Kuwait’s energy diplomacy must address both sides of this equation: maintaining oil exports and securing gas and electricity supplies. International agreements and domestic reforms must serve that shared objective.

Kuwait’s energy diplomacy must address both sides of this equation: maintaining oil exports and securing gas and electricity supplies. International agreements and domestic reforms must serve that shared objective.

Export security: Beyond production capacity

The US-Israeli war with Iran in 2026 made this challenge more visible. On 7th March, Reuters reported that Kuwait Petroleum Corporation had reduced crude production and refinery throughput amid shipping disruption through the Strait of Hormuz and a shortage of available vessels. The company described the reduction as precautionary without disclosing its scale.

This demonstrated how transport constraints can become production constraints. When products cannot leave facilities on schedule, additional extraction capacity alone cannot guarantee revenue........

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