Kuwait - Oil, Gas, Refining

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Kuwait also has considerable natural gas reserves, almost all in the form of associated gas—i.e., gas that is produced together with crude oil. There are no other important minerals. Naturally occurring fresh water is scarce; until desalination plants were built after World War II, water had to be imported. 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Kuwait’s proven recoverable reserves are thought to be enough to sustain current production levels for some 150 years, and, though the oil industry sustained severe damage during the Iraqi invasion, most of that was repaired by the mid-1990s. Kuwait also has considerable natural gas reserves, almost all in the form of associated gas—i.e., gas that is produced together with crude oil. There are no other important minerals. Naturally occurring fresh water is scarce; until desalination plants were built after World War II, water had to be imported. The generation of"/> <meta property="og:type" content="ARTICLE"/> <meta property="og:title" content="Kuwait - Oil, Gas, Refining | Britannica"/> <meta property="og:description" content="Kuwait - Oil, Gas, Refining: Kuwait has nearly one-tenth of the world’s proven oil reserves. Kuwait’s proven recoverable reserves are thought to be enough to sustain current production levels for some 150 years, and, though the oil industry sustained severe damage during the Iraqi invasion, most of that was repaired by the mid-1990s. Kuwait also has considerable natural gas reserves, almost all in the form of associated gas—i.e., gas that is produced together with crude oil. There are no other important minerals. Naturally occurring fresh water is scarce; until desalination plants were built after World War II, water had to be imported. The generation of"/> <meta property="og:site_name" content="Encyclopedia Britannica" /> <meta property="og:url" content="https://www.britannica.com/place/Kuwait"/> <meta property="og:image" content="https://cdn.britannica.com/70/5770-050-BD7FAEFD/Flag-Kuwait.jpg" /> <meta property="og:image:type" content="image/jpeg" /> <script type="text/javascript" data-type="init opengraph"> Mendel.openGraph = {"type":"ARTICLE","title":"Kuwait - Oil, Gas, Refining","description":"Kuwait - Oil, Gas, Refining: Kuwait has nearly one-tenth of the world’s proven oil reserves. Kuwait’s proven recoverable reserves are thought to be enough to sustain current production levels for some 150 years, and, though the oil industry sustained severe damage during the Iraqi invasion, most of that was repaired by the mid-1990s. Kuwait also has considerable natural gas reserves, almost all in the form of associated gas—i.e., gas that is produced together with crude oil. There are no other important minerals. Naturally occurring fresh water is scarce; until desalination plants were built after World War II, water had to be imported. 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class="col-auto"> <div class="topic-left-rail md-article-drawer position-relative d-flex border-right-sm border-left-sm open"> <div class="drawer d-flex flex-column open"> <div class="left-rail-section-content"> <div class="topic-left-rail-header text-truncate bg-gray-50 position-relative text-right d-flex align-items-center"> <div class="tlr-title px-20 py-15 text-left"> <em class="material-icons text-gray-400 d-lg-none" data-icon="toc"></em> <a class="font-serif font-weight-bold text-black link-blue" href="https://www.britannica.com/place/Kuwait">Kuwait</a> </div> <button aria-label="Close" class="js-sections-close-button btn-link btn-sm btn d-lg-none position-absolute top-0 p-10 right-0" > <em class="material-icons font-26" data-icon="close"></em> </button> </div> <div class="section-content pl-10 pr-20 pl-sm-50 pr-sm-60 pl-lg-5 pr-lg-10 pt-10 pt-lg-0 bg-gray-50 clear-catfish-ad"> <div class="toc mb-20"> <div class="font-serif font-14 font-weight-bold mx-15 mb-15 mt-20"> Table of Contents </div> <ul class="list-unstyled my-0" data-level="h1"><li data-target="#ref1"><div class="pl-25"><a class="link-gray-900 w-100" href="/place/Kuwait">Introduction & Quick Facts</a></div><div class="ml-40 toc-drawer sub-toc-drawer"></div></li><li data-target="#ref45141"><div class="d-flex align-items-center"><button class="h1-link-drawer-button btn btn-xs btn-circle d-flex rounded" type="button" aria-label="Toggle Heading"><em class="material-icons font-18" data-icon="keyboard_arrow_right"></em></button><a class="w-100 link-gray-900" href="/place/Kuwait#ref45141">Land</a></div><div class="ml-40 toc-drawer sub-toc-drawer"><ul class="list-unstyled" data-level="h2"><li data-target="#ref45142"><a class="w-100 link-gray-900" href="/place/Kuwait#ref45142">Relief</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248530"><a class="w-100 link-gray-900" href="/place/Kuwait#ref248530">Drainage</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248531"><a class="w-100 link-gray-900" href="/place/Kuwait#ref248531">Soils</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref45144"><a class="w-100 link-gray-900" href="/place/Kuwait/Climate">Climate</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref45143"><a class="w-100 link-gray-900" href="/place/Kuwait/Climate#ref45143">Plant and animal life</a></li></ul></div></li><li data-target="#ref45146"><div class="d-flex align-items-center"><button class="h1-link-drawer-button btn btn-xs btn-circle d-flex rounded" type="button" aria-label="Toggle Heading"><em class="material-icons font-18" data-icon="keyboard_arrow_right"></em></button><a class="w-100 link-gray-900" href="/place/Kuwait/Climate#ref45146">People</a></div><div class="ml-40 toc-drawer sub-toc-drawer"><ul class="list-unstyled" data-level="h2"><li data-target="#ref248532"><a class="w-100 link-gray-900" href="/place/Kuwait/Climate#ref248532">Ethnic groups</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248533"><a class="w-100 link-gray-900" href="/place/Kuwait/Climate#ref248533">Languages</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248534"><a class="w-100 link-gray-900" href="/place/Kuwait/Climate#ref248534">Religion</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref45145"><a class="w-100 link-gray-900" href="/place/Kuwait/Climate#ref45145">Settlement patterns</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248535"><a class="w-100 link-gray-900" href="/place/Kuwait/Demographic-trends">Demographic trends</a></li></ul></div></li><li data-target="#ref45147"><div class="d-flex align-items-center"><button class="h1-link-drawer-button btn btn-xs btn-circle d-flex rounded" type="button" aria-label="Toggle Heading"><em class="material-icons font-18" data-icon="keyboard_arrow_right"></em></button><a class="w-100 link-gray-900" href="/place/Kuwait/Demographic-trends#ref45147">Economy</a></div><div class="ml-40 toc-drawer sub-toc-drawer"><ul class="list-unstyled" data-level="h2"><li data-target="#ref45149"><a class="w-100 link-gray-900" href="/place/Kuwait/Demographic-trends#ref45149">Agriculture and fishing</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248536"><a class="w-100 link-gray-900" href="/place/Kuwait/Resources-and-power">Resources and power</a><ul class="list-unstyled" data-level="h3"><li data-target="#ref248537"><a class="w-100 link-gray-900" href="/place/Kuwait/Resources-and-power#ref248537">Oil</a></li></ul><ul class="list-unstyled" data-level="h3"><li data-target="#ref248538"><a class="w-100 link-gray-900" href="/place/Kuwait/Resources-and-power#ref248538">Natural gas</a></li></ul><ul class="list-unstyled" data-level="h3"><li data-target="#ref248539"><a class="w-100 link-gray-900" href="/place/Kuwait/Resources-and-power#ref248539">Water</a></li></ul></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248540"><a class="w-100 link-gray-900" href="/place/Kuwait/Resources-and-power#ref248540">Manufacturing</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref45151"><a class="w-100 link-gray-900" href="/place/Kuwait/Resources-and-power#ref45151">Finance</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248541"><a class="w-100 link-gray-900" href="/place/Kuwait/Resources-and-power#ref248541">Trade</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248542"><a class="w-100 link-gray-900" href="/place/Kuwait/Resources-and-power#ref248542">Services</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248543"><a class="w-100 link-gray-900" href="/place/Kuwait/Labour-and-taxation">Labour and taxation</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref45152"><a class="w-100 link-gray-900" href="/place/Kuwait/Labour-and-taxation#ref45152">Transportation and telecommunications</a></li></ul></div></li><li data-target="#ref93652"><div class="d-flex align-items-center"><button class="h1-link-drawer-button btn btn-xs btn-circle d-flex rounded" type="button" aria-label="Toggle Heading"><em class="material-icons font-18" data-icon="keyboard_arrow_right"></em></button><a class="w-100 link-gray-900" href="/place/Kuwait/Labour-and-taxation#ref93652">Government and society</a></div><div class="ml-40 toc-drawer sub-toc-drawer"><ul class="list-unstyled" data-level="h2"><li data-target="#ref248544"><a class="w-100 link-gray-900" href="/place/Kuwait/Labour-and-taxation#ref248544">Constitutional framework</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248545"><a class="w-100 link-gray-900" href="/place/Kuwait/Labour-and-taxation#ref248545">Justice</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248546"><a class="w-100 link-gray-900" href="/place/Kuwait/Labour-and-taxation#ref248546">Political process</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248547"><a class="w-100 link-gray-900" href="/place/Kuwait/Labour-and-taxation#ref248547">Security</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref93654"><a class="w-100 link-gray-900" href="/place/Kuwait/Health-and-welfare">Health and welfare</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248548"><a class="w-100 link-gray-900" href="/place/Kuwait/Health-and-welfare#ref248548">Housing</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref93655"><a class="w-100 link-gray-900" href="/place/Kuwait/Health-and-welfare#ref93655">Education</a></li></ul></div></li><li data-target="#ref93656"><div class="d-flex align-items-center"><button class="h1-link-drawer-button btn btn-xs btn-circle d-flex rounded" type="button" aria-label="Toggle Heading"><em class="material-icons font-18" data-icon="keyboard_arrow_right"></em></button><a class="w-100 link-gray-900" href="/place/Kuwait/Cultural-life">Cultural life</a></div><div class="ml-40 toc-drawer sub-toc-drawer"><ul class="list-unstyled" data-level="h2"><li data-target="#ref248549"><a class="w-100 link-gray-900" href="/place/Kuwait/Cultural-life#ref248549">Daily life and social customs</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248550"><a class="w-100 link-gray-900" href="/place/Kuwait/Cultural-life#ref248550">The arts</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248551"><a class="w-100 link-gray-900" href="/place/Kuwait/Cultural-life#ref248551">Cultural institutions</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248552"><a class="w-100 link-gray-900" href="/place/Kuwait/Cultural-life#ref248552">Sports and recreation</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref248553"><a class="w-100 link-gray-900" href="/place/Kuwait/Cultural-life#ref248553">Media and publishing</a></li></ul></div></li><li data-target="#ref93657"><div class="d-flex align-items-center"><button class="h1-link-drawer-button btn btn-xs btn-circle d-flex rounded" type="button" aria-label="Toggle Heading"><em class="material-icons font-18" data-icon="keyboard_arrow_right"></em></button><a class="w-100 link-gray-900" href="/place/Kuwait/History">History</a></div><div class="ml-40 toc-drawer sub-toc-drawer"><ul class="list-unstyled" data-level="h2"><li data-target="#ref45155"><a class="w-100 link-gray-900" href="/place/Kuwait/History#ref45155">Early settlers</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref93658"><a class="w-100 link-gray-900" href="/place/Kuwait/History#ref93658">Iran-Iraq War</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref282001"><a class="w-100 link-gray-900" href="/place/Kuwait/The-Persian-Gulf-War-and-its-aftermath">The Persian Gulf War and its aftermath</a></li></ul><ul class="list-unstyled" data-level="h2"><li data-target="#ref282002"><a class="w-100 link-gray-900" href="/place/Kuwait/The-Persian-Gulf-War-and-its-aftermath#ref282002">Political conflict and reform in the early 21st century</a></li></ul></div></li></ul> <a class="toc-extra-link link-gray-900" href="https://www.britannica.com/place/Kuwait/additional-info">References & Edit History</a> <a class="toc-extra-link link-gray-900" href="/facts/Kuwait">Facts & Stats</a> </div> <div class="tlr-media-slider pb-10 mb-30"> <a class="section-header link-gray-900 font-serif font-14 font-weight-bold mb-10 mx-10" href="https://www.britannica.com/place/Kuwait/images-videos">Images, Videos & Interactives</a> <div class="slider js-slider position-relative d-inline-flex align-items-center mw-100 "> <div class="slider-container js-slider-container overflow-hidden d-flex overflow-hidden 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Let us know if you have suggestions to improve this article (requires login). </div> <div class="type-menu"> <label for="feedback-type" class="label mb-10">Feedback Type</label> <select id="feedback-type" class="form-select mb-30" name="feedbackTypeId" required> <option value="" selected="selected">Select a type (Required)</option> <option value="1">Factual Correction</option> <option value="2">Spelling/Grammar Correction</option> <option value="3">Link Correction</option> <option value="4">Additional Information</option> <option value="5">Other</option> </select> </div> <label for="feedback" class="label mb-10">Your Feedback</label> <textarea id="feedback" class="form-control mb-30" name="feedback" maxlength="3000" rows="7" required></textarea> <button class="btn btn-blue" type="submit">Submit Feedback</button> </form> <div class="success-messaging d-none mt-30"> <div class="title">Thank you for your feedback</div> <p>Our editors will review what you’ve submitted and determine whether to revise the article.</p> </div> </div> </div> <div class="md-websites-modal size-lg d-none"> <div class="md-modal-body"> <div class="h2 font-serif pb-15 border-bottom font-weight-bold"> External Websites </div> <div class="pb-20"> <ul class="list-unstyled mt-20 lh-lg"> <li><a class="external" href="https://www.cia.gov/the-world-factbook/countries/kuwait/" target="_blank" rel="noopener nofollow">Central Intelligence Agency - The World Factbook - Kuwait</a></li> </ul> </div> <div class="md-websites-ebk-title">Britannica Websites</div> <div class="md-websites-ebk-subtitle">Articles from Britannica Encyclopedias for elementary and high school students.</div> <ul class="list-unstyled bps-topic-web-sites lh-lg"> <li><a class="external" href="https://kids.britannica.com/kids/article/Kuwait/345721" target="_blank" rel="noopener">Kuwait - Children's Encyclopedia (Ages 8-11)</a></li> <li><a class="external" href="https://kids.britannica.com/students/article/Kuwait/275337" target="_blank" rel="noopener">Kuwait - Student Encyclopedia (Ages 11 and up)</a></li> </ul> </div> </div> </div> </div> <div class="toc-header-marker"></div> <button class="ai-ask-button btn border-2 js-header-ai-ask-button d-none btn-sm btn-outline-red-400 border-red-400 mr-0 mr-lg-10 ml-5 ml-sm-10 ml-lg-0 p-10"> Ask the Chatbot a Question </button> <div class="caption alternate-titles">Also known as: Dawlat al-Kuwayt, State of Kuwait</div> <div class="md-byline module-spacing "> <div class="font-serif font-12"> <span class="written-by text-gray-700"> Written by </span> <div class="editor-popover popover p-0"> <a class="d-block p-20 qa-editor-popup gtm-byline font-12 byline-contributor" href="/contributor/Dawlat-Ahmed-Sadek/2561" > <div class="editor-title font-16 font-weight-bold">Dawlat Ahmed Sadek</div> <div class="editor-description font-12 font-serif mt-5 clamp-description text-black">Chairman of the Geography Department, Faculty of Arts, Ain Shams University, Cairo, Egypt.</div> </a> <div data-popper-arrow></div> </div> <span class="btn btn-link editor-link p-0 qa-byline-link gtm-byline font-12 byline-contributor text-decoration-underline"> Dawlat Ahmed Sadek</span>, <div class="editor-popover popover p-0"> <a class="d-block p-20 qa-editor-popup gtm-byline font-12 byline-contributor" href="/contributor/Jill-Ann-Crystal/3924" > <div class="editor-title font-16 font-weight-bold">Jill Ann Crystal</div> <div class="editor-description font-12 font-serif mt-5 clamp-description text-black">Associate Professor of Political Science, Auburn University, Auburn, Alabama. Author of <i>Oil and Politics in the Gulf </i>and others.</div> </a> <div data-popper-arrow></div> </div> <span class="btn btn-link editor-link p-0 qa-byline-link gtm-byline font-12 byline-contributor text-decoration-underline"> Jill Ann Crystal</span><span class="text-gray-700 mx-5">•</span><a class="see-all border-gray-700 gtm-byline" rel="nofollow" href="https://www.britannica.com/place/Kuwait/additional-info#contributors">All</a> </div> <div class="font-serif font-12 text-gray-700"> <span class="qa-fact-checked-by">Fact-checked by</span> <div class="editor-popover popover p-0"> <a class="d-block p-20 qa-editor-popup font-12" href="/editor/The-Editors-of-Encyclopaedia-Britannica/4419" > <div class="editor-title font-16 font-weight-bold">The Editors of Encyclopaedia Britannica</div> <div class="editor-description font-12 font-serif mt-5 text-black">Encyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree. They write new content and verify and edit content received from contributors.</div> </a> <div data-popper-arrow></div> </div> <span class="btn btn-link editor-link p-0 qa-byline-link font-12 "> The Editors of Encyclopaedia Britannica</span></div> <div class="last-updated font-12 font-serif"> <span class="text-gray-700"> Last Updated: <time datetime="2025-02-17T00:00:00CST" >Feb 17, 2025</time> •</span> <a class="byline-edit-history" href="https://www.britannica.com/place/Kuwait/additional-info#history" rel="nofollow">Article History</a> </div></div> </div> <button class="d-flex d-lg-none btn btn-outline-blue border rounded-sm shadow-sm mobile-toc-button gtm-mobile-toc-inline-button d-none d-sm-block js-sections-inline-button module-spacing btn d-lg-none"> <em class="material-icons mr-5 ml-n10 my-n5 md-icon" data-icon="toc"></em> Table of Contents </button> <div class="d-flex d-sm-none flex-row"> <button class="d-flex d-lg-none btn btn-outline-blue border rounded-sm shadow-sm mobile-toc-button gtm-mobile-toc-inline-button js-sections-inline-button module-spacing"> <em class="material-icons mr-5 ml-n10 my-n5 md-icon" data-icon="toc"></em> Table of Contents </button> <button class="ai-ask-button btn border-2 ai-ask-button btn border-2 module-spacing btn-sm js-inline-ai-ask-button btn-outline-red-400 border-red-400 p-10 ml-5"> Ask the Chatbot a Question </button> </div> <div class="bg-gray-50 p-15 rounded module-spacing recent-news d-flex flex-column float-false"> <div> <h2 class="font-weight-bold font-14 m-0 d-inline"> News <span class="text-gray-600">•</span> </h2> <div class="recent-news-item first-recent-news-item d-inline"> <a class="font-14 gtm-ap-news-link" href="https://www.thestar.com.my/aseanplus/aseanplus-news/2025/02/15/lao-pm-holds-talks-on-ties-with-uae-kuwait-counterparts-and-vietnam-dpm-in-dubai" rel="nofollow">Lao PM holds talks on ties with UAE, Kuwait counterparts and Vietnam DPM in Dubai</a> <span class="font-14 text-gray-600"> <span>•</span> Feb. 15, 2025, 2:13 AM ET (The Star) <button class="btn btn-link d-inline p-0 font-12 js-toggle-recent-news"> <span class="text-gray-500">...</span><span>(Show more)</span> </button> </span> </div> </div> <div class="rest-of-recent-news-items"> <div class="recent-news-item mt-5"> <a class="font-14 gtm-ap-news-link" href="https://www.jpost.com/breaking-news/article-841050" rel="nofollow">US State Dept approves possible sale of military-related services to Kuwait</a> <span class="font-14 text-gray-600"> <span>•</span> Feb. 6, 2025, 8:36 AM ET (Jerusalem Post) </span> </div> <div class="recent-news-item mt-5"> <a class="font-14 gtm-ap-news-link" href="https://www.bloomberg.com/news/articles/2025-02-03/blackrock-said-to-explore-office-in-kuwait-deepening-gulf-ties" rel="nofollow">BlackRock Said to Explore Office in Kuwait, Deepening Gulf Ties</a> <span class="font-14 text-gray-600"> <span>•</span> Feb. 3, 2025, 3:04 AM ET (Bloomberg) </span> </div> <div class="recent-news-item mt-5"> <a class="font-14 gtm-ap-news-link" href="https://www.bloomberg.com/news/articles/2025-02-02/kuwait-forecasts-6-3-billion-dinar-deficit-for-next-fiscal-year" rel="nofollow">Kuwait Forecasts 6.3 Billion Dinar Deficit for Next Fiscal Year</a> <span class="font-14 text-gray-600"> <span>•</span> Feb. 2, 2025, 9:49 AM ET (Bloomberg) </span> </div> <div class="recent-news-item mt-5"> <a class="font-14 gtm-ap-news-link" href="https://www.bloomberg.com/news/articles/2025-01-30/kuwait-may-be-able-to-sell-first-debt-since-2017-after-new-law" rel="nofollow">Kuwait May Be Able to Sell First Debt Since 2017 After New Law</a> <span class="font-14 text-gray-600"> <span>•</span> Jan. 30, 2025, 4:09 AM ET (Bloomberg) </span> </div> <button class="js-toggle-recent-news d-flex btn btn-unstyled font-14 pr-10 rounded-sm mt-10" aria-label="Toggle additional news items"> Show less <em class="material-icons" data-icon="expand_less"></em> </button> </div> </div><span class="marker before-article"></span><section data-level="2" id="ref248536">  <span class="marker PREMOD1 mod-inline"></span><p class="topic-paragraph">Kuwait has nearly one-tenth of the world’s proven oil reserves. Kuwait’s proven recoverable reserves are thought to be enough to sustain current production levels for some 150 years, and, though the oil industry sustained severe damage during the Iraqi invasion, most of that was repaired by the mid-1990s. Kuwait also has considerable natural gas reserves, almost all in the form of associated gas—i.e., gas that is produced together with <a href="https://www.britannica.com/science/crude-oil" class="md-crosslink autoxref " data-show-preview="true">crude oil</a>. There are no other important minerals. Naturally occurring fresh water is scarce; until desalination plants were built after <a href="https://www.britannica.com/event/World-War-II" class="md-crosslink autoxref " data-show-preview="true">World War II</a>, water had to be imported.</p><span class="marker MOD1 mod-inline"></span> <span class="marker PREMOD2 mod-inline"></span><p class="topic-paragraph">The generation of electricity also has increased significantly as population and industry have grown. Production is concentrated in several large natural-gas–fired power stations, including one at <a href="https://www.britannica.com/place/Al-Shuwaykh" class="md-crosslink autoxref " data-show-preview="true">Al-Shuwaykh</a> and another at <a href="https://www.britannica.com/place/Al-Shuaybah" class="md-crosslink autoxref " data-show-preview="true">Al-Shuʿaybah</a>.</p><span class="marker MOD2 mod-inline"></span> <section data-level="3" id="ref248537"> <h2 class="h3">Oil</h2> <span class="marker PREMOD3 mod-inline"></span><div class="assemblies"><div class="w-100"><figure class="md-assembly m-0 mb-md-0 card card-borderless print-false" data-assembly-id="2000" data-asm-type="image"><div class="md-assembly-wrapper card-media" data-type="image"><a href="https://cdn.britannica.com/44/1644-050-E5FB377A/Oil-rig-Persian-Gulf-Kuwait.jpg" class="gtm-assembly-link position-relative d-flex align-items-center justify-content-center media-overlay-link card-media" data-href="/media/1/325644/2000"><picture><source media="(min-width: 680px)" srcset="https://cdn.britannica.com/44/1644-050-E5FB377A/Oil-rig-Persian-Gulf-Kuwait.jpg?w=300"><img src="https://cdn.britannica.com/44/1644-050-E5FB377A/Oil-rig-Persian-Gulf-Kuwait.jpg?w=300" alt="Kuwait: oil rig" data-width="1600" data-height="1078" loading="eager"></picture><button class="magnifying-glass btn btn-circle position-absolute shadow btn-white top-10 right-10" aria-label="Zoom in"><em class="material-icons link-blue" data-icon="zoom_in"></em></button></a></div><figcaption class="card-body"><div class="md-assembly-caption text-muted font-14 font-serif line-clamp"><span><a class="gtm-assembly-link md-assembly-title font-weight-bold d-inline font-sans-serif mr-5 media-overlay-link" href="https://cdn.britannica.com/44/1644-050-E5FB377A/Oil-rig-Persian-Gulf-Kuwait.jpg" data-href="/media/1/325644/2000">Kuwait: oil rig</a><span>Oil rig in the Persian Gulf off Kuwait.</span><button class="js-more-btn d-none btn btn-unstyled font-12 bg-white js-content" aria-label="Toggle more/less fact data"><span class="link-blue">(more)</span></button></span></div></figcaption></figure></div></div><p class="topic-paragraph">In 1934 the <span id="ref484463"></span><a href="https://www.britannica.com/topic/Kuwait-Oil-Company" class="md-crosslink ">Kuwait Oil Company</a> (KOC), the ownership of which was divided equally between what were then the British Petroleum Company and the <a href="https://www.britannica.com/money/Gulf-Oil-Corporation" class="md-crosslink autoxref " data-show-preview="true">Gulf Oil Corporation</a> (of the United States), obtained a <a class="md-dictionary-link md-dictionary-tt-off mw" data-term="concession" href="https://www.merriam-webster.com/dictionary/concession" data-type="MW">concession</a> covering the whole territory except the Neutral Zone. Oil was struck in 1938, but World War II deferred development until 1946. Thereafter, progress was spectacular. In 1953 the American Independent Oil Company and the Getty Oil Company, which jointly held <a class="md-dictionary-link md-dictionary-tt-off mw" data-term="concessions" href="https://www.merriam-webster.com/dictionary/concessions" data-type="MW">concessions</a> for the Neutral Zone, struck oil in commercial quantities, and in 1955 oil was discovered in northern Kuwait. By 1976 Kuwait had achieved complete control of the KOC, with the former owners retaining the right to purchase at a discount. The government also achieved full ownership of the <span id="ref484464"></span>Kuwait National Petroleum Company (KNPC), which it had formed in 1960 with private Kuwaiti investors. The KNPC, designed to serve as an <a class="md-dictionary-link md-dictionary-tt-off mw" data-term="integrated" href="https://www.merriam-webster.com/dictionary/integrated" data-type="MW">integrated</a> oil company, controlled the supply and distribution of <a href="https://www.britannica.com/science/petroleum" class="md-crosslink autoxref " data-show-preview="true">petroleum</a> products within the <a href="https://www.britannica.com/topic/nation-state" class="md-crosslink autoxref " data-show-preview="true">country</a> and began marketing operations abroad. In 1980 the government founded the <span id="ref484465"></span>Kuwait Petroleum Corporation as an umbrella organization overseeing the KOC and the KNPC as well as the Kuwait Oil Tanker Company, the Petrochemicals Industries Company, and the Kuwait Foreign Petroleum Exploration Company.</p><span class="marker MOD3 mod-inline"></span> <span class="marker PREMOD4 mod-inline"></span><p class="topic-paragraph">The relatively low cost of oil production in Kuwait stems from certain unique advantages. Most important, there are a number of highly productive wells, the output of which can be varied at short notice, which thus eliminates the need for large numbers of storage tanks. Most of the storage tanks themselves are placed on a ridge set back a few miles from the seacoast at a height of some 300 feet (90 metres); this enables loading operations to be carried out by gravity rather than by pumps. There are also <a class="md-dictionary-link md-dictionary-tt-off eb" data-term="extensive" href="https://www.britannica.com/dictionary/extensive" data-type="EB">extensive</a> refineries and bunkers for tankers. While retreating from Kuwait at the end of the <a href="https://www.britannica.com/event/Persian-Gulf-War" class="md-crosslink autoxref " data-show-preview="true">Persian Gulf War</a>, Iraqi forces set fire to more than 700 of the country’s 950 wells. By the fall of 1991, the fires, which had consumed about six million barrels of oil per day, had been extinguished, and production soon returned to preinvasion levels.</p><span class="marker MOD4 mod-inline"></span> </section> <section data-level="3" id="ref248538"> <h2 class="h3"><span id="ref484466"></span><a href="https://www.britannica.com/science/natural-gas" class="md-crosslink " data-show-preview="true">Natural gas</a></h2> <span class="marker PREMOD5 mod-inline"></span><p class="topic-paragraph">Massive volumes of natural gas are produced in association with crude oil. Although natural gas has great potential as a source of foreign exchange, it principally has been used for reinjection in oil fields to maintain pressure, generating electricity (notably for water distillation), and producing (as raw material) petrochemicals and fertilizers, some of which Kuwait exports in small quantities.</p><div class="module-spacing"> </div><span class="marker MOD5 mod-inline"></span> </section> <section data-level="3" id="ref248539"> <h2 class="h3">Water</h2> <span class="marker PREMOD6 mod-inline"></span><p class="topic-paragraph">For fresh water in earlier days, people depended on a few <a href="https://www.britannica.com/topic/artesian-well" class="md-crosslink " data-show-preview="true">artesian wells</a> and on rainwater collected from the roofs of houses or from cisterns at ground level. <a href="https://www.britannica.com/technology/dhow" class="md-crosslink " data-show-preview="true">Dhows</a> piloted by Kuwaiti seamen also brought fresh water from the <a href="https://www.britannica.com/place/Shatt-Al-Arab" class="md-crosslink " data-show-preview="true">Shaṭṭ al-ʿArab</a> near Basra, <a href="https://www.britannica.com/place/Iraq" class="md-crosslink autoxref " data-show-preview="true">Iraq</a>. With the rapid growth of population, however, the government of Kuwait built <span id="ref484467"></span><a href="https://www.britannica.com/technology/desalination" class="md-crosslink " data-show-preview="true">desalination</a> plants at Kuwait city, Al-Shuʿaybah, and several other locations. Important sources of fresh water have been discovered at Al-Rawḍatayn and Al-Shiqāyā, but desalination still provides the great bulk of Kuwait’s daily <a class="md-dictionary-link md-dictionary-tt-off mw" data-term="consumption" href="https://www.merriam-webster.com/dictionary/consumption" data-type="MW">consumption</a> of potable water.</p><span class="marker MOD6 mod-inline"></span> </section> </section> <section data-level="2" id="ref248540"> <h2 class="h2">Manufacturing</h2> <span class="marker PREMOD7 mod-inline"></span><p class="topic-paragraph">Manufacturing contributes roughly one-tenth of Kuwait’s <a href="https://www.britannica.com/money/gross-domestic-product" class="md-crosslink autoxref " data-show-preview="true">GDP</a> and consists almost entirely of refined petroleum products, petrochemicals, and fertilizers. Other, less-important manufactured products include clothing and apparel, fabricated metal products, industrial chemicals, and nonelectrical machinery.</p><span class="marker MOD7 mod-inline"></span> </section> <section data-level="2" id="ref45151"> <h2 class="h2">Finance</h2> <span class="marker PREMOD8 mod-inline"></span><p class="topic-paragraph">The Central Bank of Kuwait (Bank al-Kuwayt al-Markazī) issues the national currency, the Kuwaiti dinar, and is the country’s main banking regulatory body. In addition to its <a href="https://www.britannica.com/money/central-bank" class="md-crosslink autoxref " data-show-preview="true">central bank</a>, Kuwait has specialized banks operating in the areas of savings and credit, industrial loans, and real estate. There are also commercial banks. No foreign banks may operate in Kuwait, with the exception of the <span id="ref484469"></span>Bank of Bahrain and Kuwait, based in <a href="https://www.britannica.com/place/Bahrain" class="md-crosslink autoxref " data-show-preview="true">Bahrain</a> and owned equally by the two states. An Islamic bank—one bound by <a class="md-dictionary-link md-dictionary-tt-off eb" data-term="stringent" href="https://www.britannica.com/dictionary/stringent" data-type="EB">stringent</a> religious laws governing financial transactions—has also been established. Before independence an officially sanctioned <a href="https://www.britannica.com/money/stock-exchange-finance" class="md-crosslink autoxref " data-show-preview="true">stock exchange</a> operated, growing to become one of the largest in the world. The fall of the unofficial but wildly popular stock market, the Sūq al-Manākh, in 1982 sent the local economy into a mild recession. A resulting debt-settlement program supervised by the government was not completed until the early 21st century. The official Kuwait Stock Exchange was established in 1977.</p><span class="marker MOD8 mod-inline"></span> </section> <section data-level="2" id="ref248541"> <h2 class="h2">Trade</h2> <span class="marker PREMOD9 mod-inline"></span><p class="topic-paragraph">Petroleum and petroleum-derived products account for all but a very minor portion of Kuwait’s exports, with <a href="https://www.britannica.com/place/Asia" class="md-crosslink autoxref " data-show-preview="true">Asia</a> and the <a href="https://www.britannica.com/place/Middle-East" class="md-crosslink autoxref " data-show-preview="true">Middle East</a> being the most important markets. Kuwait’s imports—largely machinery and transport equipment, manufactured goods, and food—are principally from <a href="https://www.britannica.com/place/China" class="md-crosslink autoxref " data-show-preview="true">China</a>, the <a href="https://www.britannica.com/place/United-States" class="md-crosslink autoxref " data-show-preview="true">United States</a>, the Gulf Arab states, and countries of the <a href="https://www.britannica.com/topic/European-Union" class="md-crosslink autoxref " data-show-preview="true">European Union</a>.</p><span class="marker MOD9 mod-inline"></span><div class="mb-20"><div class="w-100"><figure class="md-assembly m-0 mb-md-0 card card-borderless print-false" data-assembly-id="225587" data-asm-type="infogram"><div class="md-assembly-wrapper card-media" data-type="infogram"><script id="infogram_0__/zF8sGGsPVWfFtGE5acH0" src="https://e.infogram.com/js/dist/embed.js?Itp" type="text/javascript" title="Kuwait: Major export destinations"></script></div></figure></div><div class="w-100"><figure class="md-assembly m-0 mb-md-0 card card-borderless print-false" data-assembly-id="225586" data-asm-type="infogram"><div class="md-assembly-wrapper card-media" data-type="infogram"><script id="infogram_0__/mDpHV03WpmTaJieAU75b" src="https://e.infogram.com/js/dist/embed.js?Itp" type="text/javascript" title="Kuwait: Major import sources"></script></div></figure></div></div> </section> <section data-level="2" id="ref248542"> <h2 class="h2">Services</h2> <span class="marker PREMOD10 mod-inline"></span><p class="topic-paragraph">Kuwait has <a class="md-dictionary-link md-dictionary-tt-off eb" data-term="invested" href="https://www.britannica.com/dictionary/invested" data-type="EB">invested</a> only marginally in local industry. As a result, nearly all employed Kuwaitis work for the state, largely in education (only a small fraction of these are in the oil industry). Almost one-third of the government’s revenues are spent on salaries. Tourism plays only a small role in the country’s economy. The Iraqi invasion further limited its importance, and the sector has been slow to recover.</p><span class="marker MOD10 mod-inline"></span> </section> <span class="marker end-of-content"></span><span class="marker after-article"></span></div> <div id="chatbot-root"></div> </div> </div> </div> <div class="ai-dialog-placeholder"></div> </div> </div> <aside class="col-md-da-320"></aside> </div> </div> </div> </div> </article> </div> </div> </div> </div> </main> <div id="md-footer"></div> <noscript><iframe src="//www.googletagmanager.com/ns.html?id=GTM-5W6NC8" height="0" width="0" style="display:none;visibility:hidden"></iframe></noscript> <script type="text/javascript" id="_informizely_script_tag"> var IzWidget = IzWidget || {}; (function (d) { var scriptElement = d.createElement('script'); scriptElement.type = 'text/javascript'; scriptElement.async = true; scriptElement.src = "https://insitez.blob.core.windows.net/site/f780f33e-a610-4ac2-af81-3eb184037547.js"; var node = d.getElementById('_informizely_script_tag'); node.parentNode.insertBefore(scriptElement, node); } )(document); </script>  <script> window.ap3c = window.ap3c || {}; var ap3c = window.ap3c; ap3c.cmd = ap3c.cmd || []; ap3c.cmd.push(function() { ap3c.init('ZO4siT4cLwnykPnzZWJtd3Byb2Q', 'https://engage.email.britannica.com/'); ap3c.track({v: 0}); }); ap3c.activity = function(act) { ap3c.act = (ap3c.act || []); ap3c.act.push(act); }; var s, t; s = document.createElement('script'); s.type = 'text/javascript'; s.src = "https://engage.email.britannica.com/app.js"; t = document.getElementsByTagName('script')[0]; t.parentNode.insertBefore(s, t); </script> <script class="marketing-page-info" type="application/json"> {"pageType":"Topic","templateName":"DESKTOP","pageNumber":4,"pagesTotal":9,"pageId":325644,"pageLength":975,"initialLoad":true,"lastPageOfScroll":false} </script> <script class="marketing-content-info" type="application/json"> [] </script> <script src="https://cdn.britannica.com/mendel-resources/3-133/js/libs/jquery-3.5.0.min.js?v=3.133.9"></script> <script type="text/javascript" data-type="Init Mendel Code Splitting"> (function() { $.ajax({ dataType: 'script', cache: true, url: 'https://cdn.britannica.com/mendel-resources/3-133/dist/topic-page.js?v=3.133.9' }); })(); </script> <script class="analytics-metadata" type="application/json"> {"leg":"D","adLeg":"D","userType":"ANONYMOUS","pageType":"Topic","pageSubtype":null,"articleTemplateType":"COUNTRY_PAGINATED","gisted":false,"pageNumber":4,"hasSummarizeButton":false,"hasAskButton":true} </script> <script type="text/javascript"> EBStat={accountId:-1,hostnameOverride:'webstats.eb.com',domain:'www.britannica.com', json:''}; </script> <script type="text/javascript"> ( function() { $.ajax( { dataType: 'script', cache: true, url: '//www.britannica.com/webstats/mendelstats.js?v=1' } ) .done( function() { try {writeStat(null,EBStat);} catch(err){} } ); })(); </script> <div id="bc-fixed-dialogue"></div> </body> </html>

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Kuwait - Oil, Gas, Refining | Britannica