Kuwait had, according to the 2008 BP Statistical Energy Survey, proved oil reserves of 101.5 billion barrels at the end of 2007 or 8.19 % of the world's reserves, and around 1,600 producing oil wells. Kuwait is OPEC’s third largest oil producer. The Saudi-Kuwaiti Neutral Zone (also known as the "Divided Zone") area, which Kuwait shares with Saudi Arabia, holds an additional 5 billion barrels of reserves, half of which belong to Kuwait. Most of Kuwait's oil reserves are located in the 70-billion barrel Greater Burgan area, which comprises the Burgan, Magwa and Ahmadi structures. Greater Burgan is widely considered the world's second largest oil field, surpassed only by Saudi Arabia's Ghawar field, and has been producing oil since 1938. Kuwait's Raudhatain, Sabriya, and Minagish fields have large proven reserves as well, with 6 billion, 3.8 billion, and 2 billion barrels of oil, respectively. All of these fields have been producing since the 1950s. They generally contain medium to light crude oil with gravities in the 30o-36o API range.
According to the 2008 BP Statistical Energy Survey, Kuwait produced an average of 2625.7 thousand barrels of crude oil per day in 2007, 3.31% of the world total and a change of -2.1 % compared to 2006. The country also had a 2007 refinery capacity of 905 thousand barrels a day.
Kuwait holds a modest amount of natural gas reserves. According to the 2008 BP Statistical Energy Survey, Kuwait had 2007 proved natural gas reserves of 1.78 trillion cubic metres, 1% of the world total.
Kuwait has plans to increase its production and hopes to reach capacity of 4 million bbl/d by 2010 and 5 million bbl/d by 2020. This plan, known as "Project Kuwait," includes the possibility of the country permitting foreign oil companies to invest in upstream production, although only on "incentivised buy-back contract" (IBBC) arrangements which do not involve production sharing, concessions, or the "booking" of reserves by foreign companies. Kuwait's constitution bars foreign investment in the country's natural resources, except as provided for by law. As per the Amiri Decree:
- The Ministry of Oil shall be responsible for suggesting the general policy for the oil and gas sector and shall follow up on its implementation. It shall cooperate with the Higher Commission for Oil in the matters that are within the responsibilities of the Commission and shall supervise the execution of its decisions.
- The Ministry of Oil shall supervise all public institutions and authorities that are related to the oil sector and shall exercise the State's rights in those institutions.
- The Ministry of Oil shall establish and develop relationships with foreign public institutions and authorities that are related to the oil sector.
