Down Debt

As western oil giants cut production, state-owned enterprises step up

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

The United Arab Emirates, a major OPEC member that produces four million barrels of oil per day, this month became the first Persian Gulf state to commit to a goal of net zero carbon emissions d ‘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 recent years to increase oil production, aiming to increase production to eight million barrels per day by 2027, from five million now . The country suffers from political unrest, power shortages and inadequate 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.

Even in Libya, where warring factions have crippled the oil industry for years, production is increasing. In recent months, it has produced 1.3 million barrels per day, a nine-year high. The government aims to increase that total to 2.5 million barrels per day within six years.

National oil companies in Brazil, Colombia and Argentina are also striving to produce more oil and gas in order to increase their governments’ revenues before oil demand plummets as richer countries cut back. use of fossil fuels.

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

“Argentina is concerned about climate change, but it doesn’t see it primarily as its responsibility,” said Lisa Viscidi, energy expert at the Inter-American Dialogue, a Washington-based research organization. Describing Argentina’s point of view, she added: “The rest of the world globally needs to reduce oil production, but that doesn’t mean we need to change our behavior in particular.”

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