Executive Summary 6

SWOT Analysis ..8

Kuwait Political SWOT .... 8

Kuwait Economic SWOT .. 9

Kuwait Business Environment Industry SWOT .. 10

Kuwait Energy Market Overview .....11

Global Oil Market Overview 13

Table: Global Oil Consumption (000b/d) . 14

Table: Global Oil Production (000b/d) ..... 15

Oil Price Outlook 16

Waiting For A Correction ... 16

Table: Crude Price Assumptions 2007/08 . 17

Revised Forecasts ...... 17

Table: Oil Price Forecasts ...... 18

Regional Market Overview ....19

Oil Supply And Demand ...... 19

Table: Middle East Oil Consumption (000b/d) .. 20

Table: Middle East Oil Production (000b/d) ..... 21

Oil: Downstream 22

Table: Middle East Oil Refining Capacity (000b/d) .... 22

Gas Supply And Demand .... 23

Table: Middle East Gas Consumption (bcm) ..... 23

Table: Middle East Gas Production (bcm) . 24

Liquefied Natural Gas 25

Table: Middle East LNG Exports/(Imports) (bcm) ...... 25

Business Environment Ranking .26

Middle East Region 26

Composite Scores .. 26

Regional Upstream Business Environment Rating ...... 27

Regional Downstream Business Environment Rating . 28

Upstream Scores ... 28

Downstream Scores 28

Kuwait Upstream Rating – Overview . 29

Kuwait Upstream Rating – Potential Returns .... 29

Kuwait Upstream Rating – Risks to Potential Returns 29

Kuwait Downstream Rating – Overview ... 29

Kuwait Downstream Rating – Potential Returns . 30

Kuwait Downstream Rating – Risks to Potential Returns .... 30

Business Environment 31

Legal Framework 31

Infrastructure.. 32

Labour Force.. 33

Foreign Investment Policy .. 34

Tax Regime 35

Industry Forecast Scenario ...36

Oil and Gas Reserves . 36

Oil Supply and Demand ...... 36
Gas Supply and Demand ..... 38
Refining and Oil Products Trade . 39
Revenues/Import Costs . 40
Table: Kuwait Oil & Gas – Historic Data & Forecasts 41
Other Energy .. 42
Table: Kuwait Other Energy – Historic Data & Forecasts.. 42
Key Risks to BMI’s Forecast Scenario .. 42
Long-term Oil & Gas Outlook ..... 43
Macroeconomic Outlook ...44
Table: Economic Activity . 46
Regional Case Study .47
Competitive Landscape .50
Executive Summary . 50
Table: Key Players – Kuwaiti Oil & Gas Sector 50
Overview/State Role ... 51
Table: Key Upstream Player ... 52
Table: Key Downstream Player 52
Company Monitor .53
Kuwait Petroleum Corporation (KPC) . 53
Kuwait National Petroleum Company (KNPC) 57
Glossary of Terms .60
Oil & Gas Ratings: Revised Methodology 61
Introduction 61
Ratings Overview 61
Table: BMI Oil & Gas Business Environment Ratings: Structure 62
Indicators . 63
Table: BMI Oil & Gas Business Environment Upstream Ratings: Methodology 63
Table: BMI Oil & Gas Business Environment Downstream Ratings: Methodology .. 64
Oil & Gas Outlook: Long-term forecasts 65
Global Oil Demand 65
Global Oil Demand (000b/d) .. 65
Global Oil Production (000b/d) 66
Global Oil Supply ...... 66
Global Gas Demand .. 67
Global Gas Demand (bcm) ..... 67
Global Gas Supply ..... 67
Global Gas Production (bcm) . 68
Regional Oil Demand 69
Middle East Oil Consumption (000b/d) .... 69
Regional Oil Supply ... 69
Middle East Oil Production (000b/d) . 70
Regional Refining Capacity 70
Middle East Oil Refining Capacity (000b/d) ...... 71
Regional Gas Demand . 71
Middle East Gas Consumption (bcm) 72
Regional Gas Supply .. 72
Middle East Gas Production (bcm) .. 73
Kuwait Country Overview ... 73
Kuwait Energy Outlook 74
Kuwait Oil & Gas – Long-term Forecasts 74 Kuwait Other Energy – Long-term Forecasts .... 75 Methodology & Risks To Forecasts ...... 75 BMI Forecast Modelling .76 How we generate our industry forecasts . 76 Energy Industry 77 Cross checks ... 77 Sources .... 77