End Of Oil’s Golden Days
Category: Business
end-of-oils-golden-days_kuwait
Immigrate to Canada or Australia
Study In Abroad

WE hope the oil-rich countries will start realizing that the future of oil and oil prices don’t look as promising as it used to. The dream of reaching $100 per barrel or closer is over.

For the next five to ten years, the oil price will hover within the close range of $60 to $65, if we are being optimistic about the latter level. The recent events in the Gulf is a great illustration of the fact that the previous panic of the oil markets and the sudden surge in oil prices as well as the concern over the supply security and the importance of the Gulf are no longer there.

The American administration has admitted that the Gulf, as an oil supply route, is not that important and not of domestic concerns as it will not will any supply disruption. USA has sufficiently supplied, and the world should tackle its oil concerns, while Asian consumers must take care of their oil supply security. In the meantime, USA shale oil has become the top exporter of oil to China, ahead of all OPEC countries.

This brings us to our country – Kuwait, and the continuous increase in our annual budget for expenditures, something that we can’t see any end to. There is continuous dependence on oil income by more than 92 percent, without the realization that our government, in the last five years if not more, failed to balance its budget. It had to use our financial reserve to fill the gap such that the country, within the coming four to five years, will be completely out of reserve.

We used $15 billion from our financial reserve in the last five years to meet the deficit or balance the budget. This means we have to find new sources of income to finance our state budget in the coming years especially since the oil prices will not move above $65 per barrel.

This means we will be annually incurring more deficits and increasing our state expenses, in anticipation of the oil price increasing year by year. We do not realize or we are ignoring the fact that the barrel price will not go beyond $65, but will most likely to remain down at $60 per barrel. Our asking price to balance our budget today and tomorrow must be within the level of $80, but this level will be impossible to reach and will not be acceptable to the USA administration which is looking for a barrel price anything below $70. The good old days have gone. We did nothing to find an alternative source of income.

Since 1965, our guardians have been pushing us to seek new source of income. Now, after 54 years, we are still dependent on one source of income. At the same time, our government is promising to find and create 35,000 new jobs every year, at a time when it is impossible for the oil price to go above $65 a barrel. We hope the message has been received and read well, and necessary action will be taken before it is too late.

30 Jun, 2019 1 14813
Posted Comments
Popular News
asian-expat-leaves-kuwait-without-returning-car_kuwait
Asian Expat Leaves Kuwait Without Returning Car An Asian expatriate managed to leave the country without returning a car that he rented from a car-rental office in Ardiya more than one month ago. According to security sources, the car was found in ... August 23, 2019 0 9321 Category: Crime News
family-visa-salary-cap-increased-to-500-kd_kuwait
Family Visa Salary Cap Increased To 500 KD Interior Ministry issued a new decision which stipulates the minimum salary to obtain a Family Visa to 500 KD. Earlier the salary limit for Family visa was 450 KD. Those who are already in the fami... August 24, 2019 0 5361 Category: Kuwait
transfer-from-project-visa-18-to-private-visa-18_kuwait
Transfer From Project Visa 18 To Private Visa 18 I came to Kuwait on direct company visa (project visa No. 18). My profession is foreman and my salary is more that KD 600 per month. Having worked in this company for more than four years, is it possi... August 23, 2019 2 1908 Category: Legal
dont-chase-just-take-number-plates-of-car_kuwait
Don’t Chase, Just Take Number Plates Of Car Assistant Undersecretary for Public Security Affairs in the Ministry of Interior Major General Sheikh Faisal Al Nawaf issued a circular directing all security directorates in the six governorates to d... August 22, 2019 0 1633 Category: Crime News
liquor-factory-busted-in-abdullah-almubarak_kuwait
Liquor Factory Busted In Abdullah Al-Mubarak Kuwait Farwaniya security men uncovered local liquor factory in Abdullah Al-Mubarak area run by a Chinese man containing liquor bottles ready for sale and distillation equipment.   SOURCE :... August 21, 2019 0 1455 Category: Automotive
temperature-started-decreasing_kuwait
Temperature Started Decreasing Astronomer Dr Saleh Al-Ojairi affirmed that temperatures started decreasing day after day. According to Al-Qabas daily report, Dr Ojairi said the Suhail star will appear in the Arab Peninsula on A... August 22, 2019 0 1063 Category: Weather in Kuwait
how-many-times-an-expat-can-take-visit-visa-for-wife-and-child-in-a-year_kuwait
How Many Times An Expat Can Take Visit Visa For Wife And Child In A Year? I earn a salary of KD 430 per month. I need to know how many times I can take visit visa for my wife and child in a year? Name withheld Answer: Under current rules and regulations, when a visit ... August 24, 2019 0 746 Category: Visit Visa
18-year-old-shot-in-head_kuwait
18 Year Old Shot In Head A 18-year-old Citizen has been admitted to the intensive care Unit of AL-Adan Hospital with a gunshot wound in the head in Ali Sabah AL- Salem area, the suspect, 17-year-old Citizen turn has himself t... August 22, 2019 0 708 Category: Crime News
qatar-has-built-asphalt-roads-kuwait-still-pondering-over-how-to-repair-the-potholes_kuwait
Qatar Has Built Asphalt Roads Kuwait Still Pondering Over How To Repair The Potholes When we say we are moving backwards while the world has reached the moon we are still the same,” this example applies to the reality of the comparison between Kuwait and Qatar in the issue of as... August 23, 2019 0 699 Category: Kuwait
30-arrested-in-security-campaign_kuwait
30 Arrested In Security Campaign The Capital security directorate launched a security campaign that resulted in sea port "nega alshamlan" the arrest of 30 people including 9 with expired residency visas and for violating re... August 22, 2019 0 600 Category: Crime News
View All
Popular Offers
xcite-alghanim-electronics-weekly-offers in kuwait
X-cite Alghanim Elec...
city-centre-weekly-offers in kuwait
City Centre Weekly O...
back-to-school in kuwait
Back To School
olive-supermarket-weekly-offers in kuwait
Olive Supermarket We...
nesto-hypermarket-offers in kuwait
Nesto Hypermarket Of...
Popular Events
23 Aug, 2019
0
127
Category : Entertainment
23 Aug, 2019
0
116
Category : Education
22 Aug, 2019
0
96
Category : Entertainment
01 Sep, 2019
0
77
Category : Food & Drink
31 Aug, 2019
0
77
Category : Food & Drink
Kuwait Local News
Kuwait News
Crime News New Rules Entertainment
Entertainment