Wednesday, 27 October 2010
Algeria's oil and gas output to dwindle in 2011
Algeria's Finance Ministry has said that it expects the country's energy production and exports to drop in 2011, judging by the oil and gas earnings which are down by 4.5 per cent this year. Revenues from oil and gas exports are expected to decline from $44.2 billion to $42.2 billion this year and further next year.
Speaking about the forecast for 2010 Algeria's Finance Minister Karim Djoudi confirmed that “production and exports will decline”. Algeria is the world's eight largest crude oil exporter and supplies a large portion of Europe with its energy demand.
Earlier this year, Algeria's liquid natural gas production capacity was cut by 20 per cent, in what some believe was a sign of broader problems. However, Algeria's Energy Minister Yousef Yousfi said that liquid natural gas capacity will be back to normal within a few months.
It is thought that Algeria's energy sector economic output could shrink 0.8 per cent next year, proving to be the third successive year of negative growth for the energy sector. Any reduction in energy revenues might have a significant impact on Algeria's economy with oil and gas accounting for more than 95 per cent of the country's exports.
For more news and expert analysis about Algeria please see Algeria Focus and Algeria Politics & Security.