As Western Oil Giants Cut Production, State-owned Companies Step Up

Kuwait announced last month that it planned to invest more than $6 billion in exploration over the next five years to increase production from 2.4 million barrels per day to 4 million barrels per day.

The United Arab Emirates, a major member of OPEC that produces four million barrels of oil a day, this month became the first Persian Gulf state to pledge a net zero carbon emissions target by 2050. But last year Adnoc, the UAE’s national oil company, announced it was investing $122 billion in new oil and gas projects.

Iraq, OPEC’s second-largest producer after Saudi Arabia, has invested heavily in boosting oil production in recent years, aiming to increase production to eight million barrels per day by 2027 from 5 million now. The country has been suffering from political turmoil, power shortages and insufficient ports, but the government has made several major deals with foreign oil companies to help the state-owned energy company develop new fields and improve production from old ones. can get help.

Even in Libya, where warring factions have disrupted the oil industry for years, production is on the rise. In recent months, it has been churning out 1.3 million barrels a day, a nine-year high. The government aims to increase this to 2.5 million barrels per day within six years.

National oil companies in Brazil, Colombia and Argentina are also working to produce more oil and gas to increase revenue for their governments before oil demand collapses as wealthy countries cut their use of fossil fuels.

After years of bleak disappointments, production at the Vaca Muerta, or Dead Cow, oil and gas field in Argentina has jumped this year. According to Rystad Energy, a research and consulting firm, the field had never supplied more than 120,000 barrels of oil a day, but is now expected to have 200,000 barrels a day at the end of the year. The government, considered a climate leader in Latin America, has proposed legislation that would encourage even more production.

“Argentinas are concerned about climate change, but they don’t see it as primarily their responsibility,” said Lisa Viscidy, an energy expert at the Inter-American Dialogue, a Washington research organization. Describing Argentina’s approach, he said, “The rest of the world needs to reduce oil production globally, but that doesn’t mean we need to change our behavior in particular.”