The Egyptian natural gas remedy

Journal Article · · Journal of Energy and Development; (United States)

OSTI ID:7107124

Bengharsa, S A

One of Egypt's fundamental economic problems is its rapid increase of domestic energy consumption. This increase is unfortunately combined with a crude oil production that has been stagnating since 1984, and that is anticipated to decline in the future. In essence, Egypt's volatile oil output is being increasingly consumed inside the country. The result is less exportable oil, which translates into decreasing foreign-exchange supplies. This, in turn, affects the country's ability to resolve various economic problems, such as repaying its external debt (about $36 billion) and paying for imported goods and services needed to stimulate economic growth. The growth in energy demand to a large extent is caused by highly subsidized prices of energy. These subsides have allowed the establishment of industries that would not have been economically justifiable otherwise. In other words, they have caused artificial economic growth. Furthermore, the subsidies have distorted the transportation sector and discouraged energy conservation. In an effort to conserve oil and implement alternatives to hydroelectricity, the Egyptian government has made a commitment to increase the use of the country's natural gas reserves, which currently stand at about 12 trillion cubic ft. 9 refs., 1 fig., 6 tabs.

• OSTI ID: 7107124
• Journal Information: Journal of Energy and Development; (United States), Journal Name: Journal of Energy and Development; (United States) Vol. 27:2; ISSN 0361-4476; ISSN JENDD2
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294003* -- Energy Planning & Policy-- Natural Gas
AFRICA
ARAB COUNTRIES
DEVELOPING COUNTRIES
EGYPTIAN ARAB REPUBLIC
ENERGY CONSUMPTION
ENERGY POLICY
ENERGY SOURCE DEVELOPMENT
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
GOVERNMENT POLICIES
MIDDLE EAST
NATURAL GAS
PRODUCTION