Cost Of Kuwaiti Oil Production Triples In Six Years - Ministry Inquiry Under Way

[hatrack]

KUWAIT CITY, Kuwait -- A parliamentary committee has asked Kuwait's Audit Bureau to investigate why the cost of oil production has tripled over the past six fiscal years, the head of the committee said Saturday.

"We have asked the bureau to prepare a report on the causes of the steep rise of the production cost and elements included in calculating the cost," MP Adnan Abdulsamad said.

Al Shall Economic Consultants said in a report published Saturday that the production cost has increased from $1.40 a barrel in 2001 to $4.42 a barrel in 2007, growing by 18 percent annually on average. The report is based on official statistics.

Al Shall attributed the rise to one of three possible reasons: that Kuwaiti oilfields have become too old thus making it difficult to control production costs; that additional unnecessary expenses are included in cost, or that the cost is being deliberately altered.

EDIT

http://www.metimes.com/storyview.php?StoryID=20070609-013414-6870r

[phantom power]

1. Heh. Wonder if they can explain without uttering the words "peak" and "oil?"

[Nihil]

2. Doubt they could avoid mentioning "oil" ! (n/t)

:evilgrin:

[GliderGuider]

3. And they downgraded their reserves last year by 50%

Do you think tiny little fields cost more to extract on average than the big ones they are trying to replace?

I remember hearing a name for that phenomenon somewhere. What in earth was it? For the life of me I can't remember, so it mustn't have been that important. Seems like it rhymed with "Bleak Toil" or something.

[Javaman]

4. Actually I think you are more accurate with "Bleak Toil"

because when oil is gone we will all be toiling in the earth again to eat.

[tom_paine]

5. I imgaine they are experiencing an upsurge in corruption attendant with the BushPutinist reign

What the hell must THAT look like, considering Kuwait was a s corrupt as we are now under Bushler.

Are we back to the 1890s there, with so much baksheesh required that nothing gets done?

Hell, we are almost there here at home in The Empire.