Forbes: With Oil Down, Can Algeria Afford To Bet On Shale?

While the declining price of oil has been felt across the globe, economies like Algeria feel it the most. Algeria currently counts on energy for about 98 percent of their export revenue, making up the lion’s share of state spending. For years, that revenue has remained strong, allowing the long-standing government of President Abdelaziz Bouteflika to counter public unrest and uncertainty with readily available funds. This even helped keep things calm in the country as protests spread across the region from 2011 on.

However, with a political transition likely and oil prices dropping to uncertain lows, Algeria may not have the access and reliable financial tools they have become used to. To be clear, Algeria currently has sizable foreign reserves, allowing some level of confidence and reach. However, the downturn has helped exacerbate an already battered energy environment that has seen a downturn in vital production levels over the last several years.
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