Kuwait City is the capital and largest city of Kuwait. It has a population of over 2.1 million people. Kuwait has significant oil reserves, holding about 10% of the world's total. However, Kuwait admitted in 2005 that production at the giant Burgan oil field, the second largest in the world, had peaked and was declining. During the Gulf War in 1990-91, the retreating Iraqi army set fire to over 600 oil wells causing major environmental damage.