Wednesday 30 August 2017
Last update on Wednesday, August 30, 2017 At 7:52 AM
After the official report released by the Algerian Ministry of Industry, the exportation of oil and gas brought 20 billions dollars over the last seven months (from January to July).
The Sonatrach head office in Oran: the bigger oil & gas producer of Algeria.
The amount has been calculated after the official statistics from the end of July. Compared to last year over the same period the oil and gas export has increased to 26%.
This is the direct consequence of the relative increase of the oil barrel price. Indeed one barrel last year was estimated below 50 dollars, although today the price is comprised between 50 to 55 dollars. In January 2016, the Vienna agreement has been implemented in order to help the OPEC (the Organization of the Petroleum Exporting Countries). Predictions over Algeria estimates the profit for the 31th December 2017 to reach 30 to 32 billions dollars meaning 10 to 12 billions more than today.
Anyhow, an increase of the profit is not totally a good news for the country. Algeria is taking a serious risk to diminish his oil and gas stock. By selling stocks now with a lower price than what it could be in 10 years, experts think that the country might have a loss of earning.
This already the case, given that in 2014 when oil and gas price dramatically dropped down, Algeria lost around 60 billions dollars profit. The years after, Algeria lost around 36 billions dollars, then 27 billions in 2016.
The revenues generated over the oil and gas export are major to the country: 97% of the annual total export is coming from the oil and gas revenue. The loss of earning has a direct involvement into the economical policy.
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