Egypt natural resources
Egypt is a significant oil producer and a rapidly growing natural gas producer. The Suez Canal and Sumed Pipeline are strategic routes for Persian Gulf oil shipments, making Egypt an important transit corridor for world energy markets.blue
“Background Egypt is a significant oil producer and a rapidly growing natural gas producer. The Suez Canal and Sumed Pipeline are strategic routes for Persian Gulf oil shipments, making Egypt an important transit corridor for world energy markets.
Hydrocarbons play a sizeable role in Egypt’s economy both from oil and natural gas production and also in terms of revenues from the Suez Canal, an important transit point for oil shipments out of the Persian Gulf. Total oil production, however, has declined since the country’s 1996 peak of close to 935,000 barrels per day (bbl/d) to current levels of about 660,000 bbl/d. Egypt’s consumption is slightly higher than production and the country has begun to rely on a small volume of imports to meet domestic demand. Egypt also has the largest oil refining sector in Africa and since refining capacity now exceeds domestic demand, some non-Egyptian crudes are currently imported for processing and re-export.
Decreases in oil production have been offset by the rapid development of the natural gas sector for both domestic consumption and export. Over the past decade, Egypt has become a significant natural gas producer and a strategic source for European natural gas imports. Egypt currently has a pipeline network for exports to Eastern Mediterranean countries in addition to liquefied natural gas (LNG) exports to Europe, Asia, and the Americas. However, increasing domestic demand for natural gas has led the government to stall natural gas export expansion plans. The government has been actively working to attract foreign investments in the sector to increase exploration, production and downstream activities.
In addition to oil and gas production, Egypt plays an important role in international energy markets through the operation of the Suez Canal and Suez-Mediterranean (SUMED) Pipeline, two routes for the export of Persian Gulf oil and LNG. Fees collected from operation of these two transit points is a significant source of revenue for the Egyptian government.
Almost all of Egypt’s 3.2 quadrillion British thermal units (Btu) of energy consumption in 2008 was met by oil (45 percent) and natural gas (49 percent). Oil’s share of the energy mix is mostly in the transportation sector but with the development of compressed natural gas (CNG) infrastructure and vehicles, the share of natural gas in the transportation sector is expected to grow.”*
*Follow the link for more details: http://www.globserver.com/en/press/egypt-natural-resources