In the aftermath of the pandemic and falling oil prices, Algerian authorities consider giving tax breaks to maintain investment in hydrocarbon projects, but there may be better alternatives for the country.
Both Algeria and Iraq were already in places of great transition and turmoil when confronted by the coronavirus pandemic. While both countries have taken some measures in response to the oil price drop and the spread of the coronavirus, questions remain.
The coronavirus pandemic and the collapse in the oil price are testing precarious economic models in the Middle East and North Africa (MENA). But if countries in the region deprioritize the diversification of their energy mixes they will miss out on the long-term opportunities renewables can bring.
For many developing counties, natural gas offers promise. There can be hidden costs to gas, however, as experiences in Ghana and Algeria show. Although certainly not without challenges of its own, renewable energy may help countries in similar situations better manage their energy use and revenue.
NRGI set out to collect total oil, gas and mining revenue data for the countries included in the Resource Governance Index to find out how many dollars flow to governments that mismanage the handling of their natural resources.
Carole Nakhle, an NRGI advisory council member, founder and director of London-based advisory, research and training company Crystol Energy, and founder of Access for Women in Energy, shared her impressions of the global hydrocarbons market, as well as some thoughts on key producers in the Middle East and North Africa, in this interview.