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Egypt - Protecting Cultural Property in Times of Armed Conflict
Egypt - Protecting Cultural Property in Times of Armed Conflict
II. Decreasing the Dependence on Oil, Coal and Other Fossil Fuels
Egypt is a country with a high potential of natural resources: precious stones, natural gas, oil, coal and
large reserves of fossil fuel energy sources. While more than 90% of the Egyptian generated electricity
comes only from oil and natural gas, the major problem that Egypt encounters, especially in the energy
sector is the dynamic growth of the population, which eventually fastens the rate of depleting the
country's resources.
Egypt plays a vital role in international energy markets through the operations of the two Suez Canal
transit points and the Suez-Mediterranean (SUMED) pipeline. Expanded in 2015, the Suez Canal is an
important transit route for oil and liquefied natural gas (LNG) shipments travelling southbound from
North Africa and along the Mediterranean Sea to Asia. Fees collected from the operation of these two
transit points are significant sources of revenue for the Egyptian government.
The high level of dependency on natural resources has drawn attention to the issue of sustainability. In
addition, subsidizing oil products and natural gas within the domestic market highlighted the public
finances challenge to continue introducing these products at low prices, regardless of their production
cost. Moreover, it is claimed that the subsidized end-user prices for energy are a significant factor
contributing to the inefficient use of non-renewable sources. To maintain efficiency, restructuring the
energy sector generally and liberalizing the oil sector specifically is necessary to meet the requirements of
competitive markets. This has induced the Egyptian government motivation to target increasing the
electric power generated from renewable resources over the next 15 years, in addition to electric energy
generated through nuclear power.
The government was primarily successful in terms of slowing-down the depletion rate of oil and, hence,
achieving a steady state of proven oil reserves. and, hence, achieving a steady state of proven oil reserves,
keeping it at 3.7 billion barrels. Given the planned oil production level, however, the share of the EGPC,
the Egyptian partner in corporations responsible for downstream oil activities, was not sufficient to meet
the increasing level of domestic oil consumption since the beginning of the 20th century. Therefore, the
EGPC has to buy the necessary portion from its foreign partner’s share and build more refinery capacity
to meet domestic demand.
The power sector has focused on the diversification of the use of fuel resources, promoting the use of
renewable energy. Egypt is endowed with abundance of wind energy resources, especially in Suez Gulf
area, as well as its potential to generate electricity by utilizing solar energy. Therefore, in 2007 the
Supreme Energy Council in Egypt adopted a resolution on an ambitious plan aiming at increasing the
contribution of renewable energy to reach 20% of total energy generated by 2020.
Egypt is willing to work with the United Nations countries to find a proper solution.