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Economic Impact of Sand and Dust Storms on the Oil Sector in Kuwait

  • Ali Al-HemoudEmail author
  • Safaa Al-Awadhi
Chapter
Part of the Advances in Science, Technology & Innovation book series (ASTI)

Abstract

There is a lack of published research on sand and dust storms (SDS) impact on the economy worldwide, and particularly in Kuwait. The economic performance of the oil sector in Kuwait during sand and dust storms was evaluated during 2009–2017. Kuwait SDS events restrict or delay oil explorations and drillings, production and operations, marine transports and other associated activities. It was found that a total of 129 SDS events occurred between the years 2001 and 2016. All of these activities and disruptions imposed costs on the oil sector economy and, based on actual data provided from both Kuwait Oil Company (KOC) and Kuwait Gulf Oil Company (KGOC), estimates were made for both the time delay and the annual costs of SDS to the economy. For the nine-year period, from 2009 to 2017, the total time delay was estimated to be 14,941.15 h, while the annual estimated cost was 489,993 KD due to restrictions in multiple oil operations, of which 56% (276,087 KD) was attributed to exploration and drilling activities. One of the challenges identified in this study is the lack of data, economic or physical, in some sectors of the economy, thus the 489,993 KD (equivalent to 70,000 KD per year) would represent only the minimum cost imposed on the Kuwait economy by SDS events.

Keywords

Sand and dust storms Oil sector Economic impact Kuwait 

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Crisis and Decision Support Program, Environment and Life Sciences Research CenterKuwait Institute for Scientific ResearchSafatKuwait

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