While Egypt was once an exporter of oil and gas, the country is now a net importer of hydrocarbon resources, as rising demand and falling or stagnating production have altered the balance. In addition, the Egyptian government’s inability to provide adequate electricity to Egyptians has become a serious source of political and social instability. Observers expect that blackouts this summer could create problems for the el-Sisi government.
The Egyptian government is making serious efforts to bring more investment into its oil and gas sector while seeking to diversify Egypt’s sources of energy. Egypt is using more coal, developing solar and wind energy, is exploring shale gas, and has plans to pursue nuclear power. Given the country’s political, economic, and social challenges, however, whether the Egyptian government will be able to achieve its objectives remains to be seen.
This report provides a timely background on the energy sector in Egypt and explores a number of key issues facing the country.