This article was automatically translated from HIBAPRESS, the Arabic version:
This article was automatically translated from HIBAPRESS, the Arabic version:
Heba Press-Youssef Adadad
Algeria is experiencing a serious decline in oil production, which threatens to exacerbate an unprecedented economic crisis that could lead to economic paralysis detrimental to the country’s stability.
In recent years, oil production has decreased significantly, since in 2005 it was around two million barrels per day, then experiencing a gradual decline until reaching one and a half million barrels per day in the middle of the last decade.
Currently, production does not exceed 910,000 barrels per day, indicating continued deterioration in the oil sector.
It is worrying to note that more than half of current production is oriented towards local consumption, despite excessive exploitation of wells, which places Algeria on the verge of a real crisis in the near future, especially that these wells are close to exhaustion.
Algeria has thus fallen to the bottom of the ranking of oil producing and exporting countries, which reinforces fears of economic repercussions which could be more complex.
Experts confirm that the Algerian military regime, which depends 90% on oil revenues, is in a very critical position.
Given the decline in production, the country could have great difficulty meeting its financial needs, which will affect all economic sectors.
Algerians increasingly fear that failed economic policies could have disastrous long-term consequences, threatening not only the national economy, but also the stability of the entire country.
