Egypt Energy Profile: Largest Non-OPEC Oil Producer In Africa - Analysis - Eurasia Review

Egypt Energy Profile: Largest Non-OPEC Oil Producer In Africa - Analysis - Eurasia Review:



"Egypt is the largest oil producer in Africa outside of the Organization of the Petroleum Exporting Countries (OPEC), and the second-largest natural gas producer on the continent, behind Algeria. Egypt plays a vital role in international energy markets through the operation of the Suez Canal and Suez-Mediterranean (SUMED) Pipeline.



The Suez Canal is an important transit route for oil and liquefied natural gas (LNG) shipments traveling northbound from the Persian Gulf to Europe and North America and southbound shipments from North Africa and countries along the Mediterranean Sea to Asia. The SUMED Pipeline is the only alternative route nearby to transport crude oil from the Red Sea to the Mediterranean Sea if ships were unable to navigate through the Suez Canal. Fees collected from the operation of these two transit points are significant sources of revenue for the Egyptian government.



In Africa, Egypt has the third-largest population, after Nigeria and Ethiopia, and the second-highest gross national income (GNI), after Nigeria, according to the World Bank. Egypt’s economy suffered during and after the 2011 revolution as the country experienced a sharp decline in tourism revenue and foreign direct investment, according to the International Monetary Fund (IMF). Annual gross domestic product (GDP) growth in Egypt dropped from 5.1% in 2010 to 1.8% in 2011 and still remains below the pre-revolution level, averaging 2.1% in 2013. According to the IMF, financial support, particularly in the form of oil and LNG shipments, from some Persian Gulf countries has helped Egypt to meet its domestic energy demand."



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