Egyptian Oil declines, imports increase

Egypt's oil exports are in a steady decline amid growing domestic demand and increasing local production, while imports are steadily increasing.

MSN reported that The Central Agency for Public Mobilization and Statistics (CAPMAS) reported Saturday that Egypt's oil exports dropped by 38 percent in August to dlrs 310.2 million, a decrease from last year's dlrs 500.6 million. According to the report, the volume of oil imports hit 920.5 million tons in August, a 4.7 percent increase from last year's 879.4 tons.

The report also shows a decline in oil and natural gas consumption in September to 6.191 million tons, from last year's 6.194 million tons. Production of natural gas went down September to 2.686 million tons, from last year's 3.011 million tons.

Forbes wrote that these reports came as Egypt is trying to solve its domestic demand and production problems. This includes a sizeable amount of debt to foreign producers that increased to several billions after several years.

Cairo has tried to reduce unsustainable energy subsidies in the local market and increased hydrocarbon production, which includes major offshore efforts to curb expensive dependence on producers abroad.

Meanwhile CNBC reported that despite social and economic strife, Egypt is headed towards recovery. The country's outlook was cut to "stable" by the Standard & Poor's (S&P) earlier on November, the ratings agency projects the country's economy to bounce back gradually depending on its political stability.

According to S&P, the country will "largely remain politically stable and its economy will continue to progressively grow in the face of important macroeconomic headwinds."

Egypt's success in enhancing its oil industry would put the country in the same level with the strong Eastern Mediterranean energy production push. This advancement was led by Israel and Cyprus. The development of the field would help Cairo increase its local energy production to satisfy growing local demands.