egyptian economic climate in the 21 years old
Probably the most pressing downturn faced by Egyptian economy was the gas crisis, leading to supply slashes to factories and recurrent electrical black outs. Natural gas is one of the most important inputs in Egypt’s power technology infrastructure. According to the International Strength Agency, in 2013 gas accounted for fifty-one. 5 percent from the total main energy provided in Egypt and created 76. almost eight percent in the electricity generated. This reliability on natural gas was by no means a problem once Egypt was producing a excessive. According to the 2015 BP Statistical Review of Universe Energy, home-based production of natural gas peaked at 6th. 06 billion cubic feet (bcf) of gas per day in 2009, when intake averaged only 4. 11 bcf per day. However , simply by 2014, home-based gas creation had gone down by twenty two. 3 percent to some. 71 bcf per day.
The problem was the rapid growth of population, leading to more usage of consumer electronics and air conditioning. It was not helped by the dip in the production of natural gas, with the government also halting new exploration contracts. This lead to the nullification of natural gas surplus and of Egypt’s stature as a net gas exporter. Currently, the demand is growing by 1. 77 bcf per day and the supply is falling by 1. 2 bcf per day. So, the case here is of the demand increasing and the supply falling at different rates. (Increase in Demand >Decrease in Supply) However, three important developments can turn this around, which will be discussed in the next case. b) Increase in Demand >Increase in SupplyCertain steps would have to be taken to deal with the turmoil, and so the a result of the changes within the demand and provide of gas form this case.
In addition to purchasing gas directly, Egypt in addition has agreed to allow cement and iron production facilities to import some of their gas needs through the FSRUs, paying for half of their very own gas consumption at the authorities contract price and the relax at global market rates. While this might increase consumption of natural gas overall, it is going to reduce the pressure put on Egypt’s already limited supplies of domestically created gas.
These advancements have triggered an increase in the provision of natural gas, although demans are still elevating with more intensity.
