(MENAFN- Arab Times) Oil prices have not dropped by more than 50 percent and our cash surplus has not ended yet. We will be able to meet our budget by borrowing or selling part of our investments to make up for any cash deficits within the current fiscal year which will end in March 2016. The phenomenon of burning away and wasting gasoline water and electricity is not common only in Kuwait. It is in fact happening in all Gulf Cooperation Council (GCC) countries. Same pattern of wastage of energy is being witnessed in Kuwait like in other Gulf countries.
However Kuwait is more generous than those countries as we do not charge based on consumption. In other countries if the consumption of electricity and water is less the amount one has to pay will also be lesser and vice versa. Our demand for electricity hits its peak during summer season when the temperatures increase up to 50 degrees Centigrade requiring more than 9 million barrels of oil equivalent such as oil oil products and gas per day. The highest consumer is Saudi Arabia with 5 million barrels of oil equivalent daily followed by United Arab Emirates with 2.5 million barrels and Kuwait with 520000 barrels. However Kuwait is a small country comparatively with a smaller population and lesser number of cars. Dubai alone uses 2.5 million barrels of gasoline per day and Saudi 800000 barrels. The annual growth is on the rise and we will soon start consuming close to 50 percent of our total energy production. Therefore we have to raise the flag and take some joint action on both governmental and individual levels. Increasing the prices is the easiest step that can be taken but our government will face huge public protests. People could ask why we are doing the opposite when the prices are coming down especially since our governments increased the fuel prices for the public when the oil prices hit $100 and above. As long as electricity and water bills are not affecting our pockets no one will listen. The only solutions we can implement are to make public announcements and create a culture of saving right from the school levels. We have to encourage such a practice in our classrooms and its impact will be effective on a long-term basis especially when it is most needed. By then the people of our countries will be more receptive and ready. For the time being we have to just wait for the government to take necessary actions while more and more of our only national resource will be burnt for earning further incomes. Email: By Kamel Al-Harami Independent Oil Analyst
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