Issue: January 2015

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COVER

  • Egypt Stays Optimistic as Global Oil Prices Plummet

    Following OPEC’s decision to maintain crude output levels at 30 million barrels per day (b/d), oil prices plummeted. The stock market in the Gulf plunged to unprecedented lows. At time of writing, Brent crude dropped to $61.38 per barrel, after four consecutive weeks of losses, down almost 16% over December, and nearly 50% since its June peak, Reuters reported. Saudi Arabian Petrochemical markets, as their prices are closely linked to oil prices, took major hits. Banks were down 3.2% and retail lost 3.5%. With sweeping market losses being reported internationally across various sectors, Egypt overcame the crash relatively unscathed, its market slipping a mere 0.2%.

INSIDE ISSUE

  • WHEN NATURAL GAS IS NOT ENOUGH: Diversifying Egypt’s Energy Mix

    Egypt’s smothering summer months are old news, at least until May creeps back into our calendars. Yet the country’s worst energy crisis in decades continues to make the headlines. The second half of 2014 experienced plaguing power outages across the city, struggles to repay rising government debt, lagging foreign investment and a race to match natural gas production with domestic energy demand – all while juggling presidential elections, fuel subsidy reforms and a vulnerable industrial sector.

  • No Accountability: The Story Behind Mubarak’s Dropped Corruption Charges for Israeli Gas Deal

    When on November 29th an Egyptian court dropped all the charges against former president Hosni Mubarak, who had been indicted for the killing of protesters during the January 2011 uprising, some Egyptians reacted with jubilee, others with outrage. While people in the streets and in cafés were busy commenting on the ruling or making jokes about it, the court also cleared Mubarak, as well as his sons Alaa and Gamal and old tycoon Hussein Salem of the corruption charges related to real estate interests in Sharm el Sheikh and to the Egyptian-Israeli gas deal.

  • Egypt’s Gas Prices: The Entire Story

    Gas pricing has been a recurring issue for the current and previous governments alike, and it remains without any apparent solution. The current government has changed the previous gas pricing equation – created by former Minister of Petroleum Sameh Fahmy– to allow gas prices to vary based on the nature of the drilling area and the cost of drilling; these amendments would only affect new and exploratory wells.

  • Deepwater Natural Gas Exploration Technologies

    While Egypt has received positive news recently regarding onshore gas projects in the Nile Delta and Western Desert, 80% of its gas reserves reside in the Mediterranean Sea. However, since most of the gas is located in deep-water fields, extraction has proved difficult.

  • $400 billion Loss for American Shale Due to Oil Price Deterioration

    It’s a chess game in every sense for the Organization of Petroleum Exporting Countries (OPEC) and American companies producing shale oil – where a nascent revolution faces its first real test since it emerged five years ago.

  • MOC 2014: Egypt Is Back on Track

    The 2014 Mediterranean Oil Conference (MOC) was held in Alexandria under the theme of “Unlocking the Potentials of Mediterranean Oil and Gas.” The three-day conference opened with a speech by Eng. Tarek El-Molla, Chairman of EGPC and Chairman of the 7th annual MOC.