The Impact of the Arab Spring on Egypts Energy Free Essay Example, 4000 words

Arab countries are leading other countries in the world in oil production. In 2005, Arab oil stood at 59% of the economic oil production of the world, while the production of economic gases stood at 35.8% of the total world production (BP Statistical Review 15). The quantity of oil that Arab countries took to the world market is critical to the economic growth of the dependant nations. Oil and gases are the central sources of energy that drives industrial processes. The economic trends in the Arab countries seem to respond positively to trends of oil and gas demand in the global market. Increase in global energy increases the gallons that the oil-producing countries send into the world market. The positioning of the Arab countries is another critical factor that influences the consumption of the Arab oil in the international market. For instance, Libya oil production stood at 3.4% in the global market. The figure reflected the conditions of production and consumption before the Arab springs. The domestic consumption of oil and gas products is equally important as the product sent into the international market. We will write a custom essay sample on The Impact of the Arab Spring on Egypt's Energy or any topic specifically for you Only $17.96 $11.86/pageorder now The BP Statistical Energy Survey (24) indicated that Egypt oil reserves stood at 4.5 billion barrels, which reflects 0.32% of the world reserve at as end of 2010. The daily oil production in Egypt stood at 736.4 thousand barrels by 2010 while its consumption rate stood at 756.77 thousand barrels per day in 2010. On the other hand, natural gas production stood at 1.42% of the world production in 2010. In the same year, it consumed 1.18% of the production. The figures project a decline in oil and gas production. Egypt has been a consumer and an exporter of oil. The oil and gas production in Egypt is central to its economy. In 2005, Egypt started exporting liquefied gas that was a boost to its economy (BP Statistical Energy Survey 25). The consumption price in most Arab oil-producing countries is quite cheap when compared to prices in the world market.