عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Kuwait’s Newly Appointed Oil Minister Shows Optimism for Growing Demand

Kuwait's Minister of Oil and Electricity Bakheet Al-Rashidi , Asharq Al-Awsat
Kuwait's Minister of Oil and Electricity Bakheet Al-Rashidi , Asharq Al-Awsat
TT
TT

Kuwait’s Newly Appointed Oil Minister Shows Optimism for Growing Demand

Kuwait's Minister of Oil and Electricity Bakheet Al-Rashidi , Asharq Al-Awsat
Kuwait's Minister of Oil and Electricity Bakheet Al-Rashidi , Asharq Al-Awsat

The Kuwait Petroleum Corporation (KPC) reception was packed with dozens of well-wishers on Thursday who came to congratulate Kuwait's new Minister of Oil and Electricity Bakheet Al-Rashidi on his appointment.

Even those who have long left Kuwait's oil sector, such as former head of the Kuwait Oil Company (KOC), Sami al-Rashid, former KPC head Kamel al-Harami, and many others came to congratulate Rashidi on his new job.

In his first encounter with the media, Rashidi spoke fluently and with confidence, relaying his immense knowledge and familiarity with everything related to the sector and OPEC.

With regard to OPEC, Rashidi explained that the group’s current production-cut policy has proven successful, contributed to supporting market stability and helped in improving oil rates.

The new oil minister told reporters that it was still early to end the agreement. Everyone is still looking forward to the next meeting in June 2018 to discuss the latest developments in the market.

Rashidi is one of the people who deal with the oil sector on a daily basis--his intuitive sense for demand was refined with a multitude of experiences with refinery operations abroad.

He has worked in Europe and Asia markets.

Rashidi appears to be very optimistic about next year's demand growth.

"It's premature to talk about exit strategy. Any exit strategy in the future will surely be implemented in a smooth manner that will not disrupt the stability of the market and it will be on a gradual basis," the newly appointed oil minister, said in a statement.

"The developments of market fundamentals will continue to be closely monitored by the Joint Ministerial Monitoring Committee (JMMC), in which the State of Kuwait is a leading member, to ensure that the target of re-balancing the market and restoring its stability is achieved," he added.

The Organization of the Petroleum Exporting Countries and non-OPEC producers led by Russia agreed last month to extend oil output cuts until the end of 2018 to help lower global inventories and support prices.

Kuwait plans to adjust its oil strategy to reach production capacity of 4.750 million bpd in 2040, Kuwait's oil minister told reporters.

In terms of the project on Oman’s Duqm refinery, a joint venture between Oman Oil Company and KPC said to be about $5 billion worth, will be finalized for construction. The funding will be provided by international banks.

Rashidi predicted that the process of arranging the finances for the refinery would be completed during the first quarter of 2018.

He added that work on the refinery, which will have a refining capacity of 230,000 barrels per day, will start in the second half of next year.

Most Viewed

 
 
Business

Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
TT
TT

Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."