Oil supplies are heading to America and Europe!

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US President Donald Trump's dissatisfaction with Ukraine due to its attack and strike on Russian refineries prompted the US administration to request that Russia supply it with oil derivatives, and Europe did likewise by importing Russian oil derivatives.

Perhaps the Ukrainian attack almost paralyzed some Russian refineries at this time of the year, the winter season and the dependence on heating fuel and the urgent need for it, despite the United States of America’s complete control of Venezuela’s oil, and without an account or book, or recording the required financial amounts or quantities.

Ukraine destroyed between 27 and 28 Russian refineries out of the total Russian refineries, estimated at between 32 and 38 refineries of various sizes and types, in terms of production of various oil derivatives, i.e. approximately 51% of the total refining capacity. Its refining capacity is estimated at between 6 and 7 million barrels per day.

This is the reason for the US President’s objection and anger to striking Russian oil facilities in the most difficult of times. What may cause an oil crisis that may include the United States, a shortage of oil supplies, and then a search for alternatives, if they exist. Especially since striking refineries anywhere in the world will lead to a crisis in oil derivatives that cannot be remedied at all in a short time.

Although the refineries of the Arabian Gulf are available, they were also attacked by the Iranian side.

And in almost all refineries in the Gulf countries, which are considered among the most modern refineries in the world. But Iranian destruction and devastation have no limits. The reason may also be jealousy and its lack of modern, advanced refineries, even though it owned the Abadan refinery, which was one of the first refineries in the region. But it was unable to develop it, and it became far behind the rest of the refineries in our Arabian Gulf, and began importing petroleum derivatives from abroad, of almost every kind.

Therefore, the reason for the interest in building refineries may be the added value that is gained from building refineries above the price of crude oil, which may currently exceed $42 per barrel, which is the highest. Meaning that the current price of Kuwaiti crude oil, for example, is $106 per barrel, but the price of oil derivatives may reach between $130 and $170 per barrel. The upper level includes the price of automobile fuel and naphtha petrochemicals.

Therefore, Kuwait was the first to build refineries between OPEC countries and the Arab Gulf countries, and with the participation of the private sector, which contributed 40% of its money to the Shuaiba refinery in 1966.

While an advanced stage has now been reached in joint participations between the private sector and the government. The question arises: Isn't it time to privatize the various oil sectors, close the ongoing financial deficit, and benefit from Kuwaiti expertise and excellence? Even if the state sells part of its shares instead of selling them in full, what is the harm in the private sector’s participation with its money in decisions, and in developing the various government sectors that the government has nothing to do with, and in increasing private participation and their decisions with their money, and then preserving their capital and benefiting from it locally, instead of investing it and having their capital go abroad. Therefore, Kuwait is more entitled to their expertise and money locally. Didn't the private sector invest in national oil and petroleum tankers and the petrochemical sector? Let him be given the opportunity again and again to invest his money and what is permissible.

Independent oil writer and analyst