Algerian President concerned by declining oil prices

Algerian President Abdelaziz Bouteflika has warned of economic and social disaster in case of heavy decline in oil prices. He made this comment in a speech addressed to officials at Tlemcen University. According to Al Khabar daily,  Bouteflika has explained to the audience that Algeria is living a comfortable situation following the oil prices parade, yet, “any drop would certainly drive us to a plight, which would require rolling up sleeves,” he added.

It should be noted that the hydrocarbons sector is the backbone of the Algerian economy with 25% of gross domestic product [GDP] and over 95% of export earnings. Algeria has the fifth-largest reserves of natural gas in the world and is the second largest gas exporter.

During the first eight months of 2008, oil and gas exports, totalling US$53.09 billion, accounted for 97% of total sales abroad.