• 5 mins OPEC, Russia Said To Announce Oil Pact Extension On Nov 30
  • 3 hours Wintershall And LetterOne In Talks For $12B Oil, Gas Merger
  • 5 hours India Exempts State Oil Firms Mergers From Competition Approval
  • 7 hours Turkey Targets $5B Investment In Wind Energy By End-2017
  • 9 hours Weatherford Looks To Sell Assets To Ease Some Of $8B Debt
  • 10 hours OPEC Set To Move Fast On Cut Extension Decision
  • 12 hours Nigeria Makes First Step Away From Oil
  • 1 day Russia Approves Profit-Based Oil Tax For 2019
  • 1 day French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 1 day Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 1 day Oil Production Cuts Taking A Toll On Russia’s Economy
  • 1 day Aramco In Talks With Chinese Petrochemical Producers
  • 1 day Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 2 days Maduro Names Chavez’ Cousin As Citgo Boss
  • 2 days Bidding Action Heats Up In UK’s Continental Shelf
  • 2 days Keystone Pipeline Restart Still Unknown
  • 2 days UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 days Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 days Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 2 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 3 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 3 days Oil Prices Rise After API Reports Major Crude Draw
  • 3 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 3 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 3 days Statoil Looks To Lighter Oil To Boost Profitability
  • 3 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 3 days Whitefish Energy Suspends Work In Puerto Rico
  • 4 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 4 days Thanksgiving Gas Prices At 3-Year High
  • 4 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 4 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 4 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 4 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 5 days ConocoPhillips Sets Price Ceiling For New Projects
  • 7 days Shell Oil Trading Head Steps Down After 29 Years
  • 7 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 7 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
Saudi Oil Exports Fall To Six-Year Low In September

Saudi Oil Exports Fall To Six-Year Low In September

Saudi crude exports in September…

Tesla To Spike, Then Crash

Tesla To Spike, Then Crash

Electric car giant Tesla is…

Algeria Headed For Unrest As Oil Subsidies Set To End

Algiers

Algeria is planning to reduce oil subsidies further as a way of cutting public spending amid consistently low oil prices, the North African country’s Finance Minister Haji Baba Ammi told Bloomberg in an interview. Fuel subsidies were cut last year, with gasoline and diesel prices jumping by 14 percent and 11 percent, but subsidies are still 27 percent of GDP, while international oil prices are stuck around the US$50 mark.

Like other Arab nations, Algeria is being careful in the implementation of economic reforms in the face of declining oil export revenues and high youth unemployment. The government is wary of protests, such as the ones that forced neighboring Tunisia’s President to last week call in the military to guard the oil fields, as protests sparked by unemployment escalated. This was the first time in history that the army has had to guard the country’s hydrocarbon production.

Algeria’s oil and gas exports contribute about a quarter of GDP, according to the Energy Information Administration, as well as over 60 percent of budget revenues, and 95 percent of total export revenues. Besides the crash in oil prices, the country’s hydrocarbons sector has suffered from delays in government decisions regarding new projects and a consequent reluctance on the part of prospective investors to bid for new fields.

Related: Oil Prices Edge Higher As U.S. Oil Inventories Fall Again

While oil prices were high, Algeria enjoyed more than ten years of budget surpluses, which helped to fund a variety of public spending programs, including free health care for all. Since 2014, the state coffers have slipped from black to red, with the deficit last year hitting 12 percent of GDP. This year, however, it should go down to just 2.5 percent, further falling to 2.1 percent in 2018.

Free universal health care, though, cannot be sustained, according to Ammi.

As of April 2017, Algeria was pumping 1.075 million bpd of oil, with the historical high at 1.43 million bpd, reached in July 2004, all from conventional production. The country has considerable shale oil and gas reserves as well, with the EIA estimating the crude oil recoverable total at 5.7 billion barrels, and the gas total at 707 trillion cu ft. These make the North African country holder of the third-largest shale hydrocarbon reserves globally.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Naomi on May 18 2017 said:
    Algerians can learn to work for a living.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News