According to the Oil and Gas Journal’s January 2010 estimate, Egypt’s proven oil reserves stand at 3.7 billion barrels. In 2009, Egypt’s total oil production averaged 685,000 barrels per day (bbl/d), of which approximately 440,000 bbl/d was crude oil. Despite discoveries and enhanced oil recovery techniques at mature fields, crude oil production is declining. At the same time, new natural gas field production has led to increases in the production of natural gas liquids and lease condensates which have offset some of the declines in total oil liquids production. Oil consumption is slightly higher than production estimates at 710,000 bbl/c and, according to APS Review of Oil Market Trends, the country does register a small volume of net oil imports. These imports are, in part, the result of Egypt’s refining capacity being larger than oil production levels (see Refinery section below). Oil imports are expected to continue with some refined product exports in the short-term, but are still contingent on domestic demand growth.

 

Domestic demand for petroleum products continues to increase. Though the government hopes to reduce demand growth by gradually lifting subsidized prices and targeting subsidies more effectively, this is a politically sensitive issue that will be difficult to fully implement. The increased use of compressed natural gas as a fuel for motor vehicles is one trend that may aid government efforts, but natural gas is also subsidized and increasing consumption is beginning to impact natural gas exports