Algeria's oil and gas sector, a cornerstone of its economy, is projected to experience moderate growth over the forecast period (2025-2033). While the global market exhibits a Compound Annual Growth Rate (CAGR) of 3.41%, Algeria's specific CAGR might be slightly lower, perhaps around 2.5-3%, reflecting its dependence on aging infrastructure and fluctuating global energy prices. Sonatrach, the national oil company, plays a dominant role, impacting market dynamics and investment decisions. Upstream activities, encompassing exploration and production, are likely to see relatively stable growth driven by existing reserves and ongoing exploration efforts, although challenges related to technological advancements and accessing more challenging reserves will need to be addressed. Midstream operations, which involve transportation and storage, will likely witness moderate growth, reflecting the necessity for infrastructure upgrades and expansion to meet domestic and export demands. The downstream segment, focusing on refining and petrochemicals, presents opportunities for expansion and value addition. However, this sector faces competition from international players and requires significant investments in refining capacity and technological upgrades to meet evolving fuel specifications and enhance competitiveness. Government regulations and policies concerning energy diversification and sustainability will significantly influence the sector's trajectory. The Algerian oil and gas market is geographically concentrated, with most activities centered around existing fields. While regional diversification efforts are underway, limitations on exploration and production in other parts of the country might constrain overall sector growth. Foreign investment will be a key driver, particularly in technological upgrades and exploration of newer, potentially more challenging, reserves. However, the political and regulatory environment influences investor confidence. Increased transparency and improved regulatory frameworks could attract larger foreign investments. The market's performance will also be influenced by global energy prices, geopolitical factors, and the ongoing transition towards cleaner energy sources. The sector's long-term success depends on navigating these challenges effectively through strategic investments, technological innovation, and sustainable practices. Diversification into natural gas production and export offers significant potential for growth and revenue generation. Recent developments include: July 2022: Eni and Algerian national oil company Sonatrach reported finding large oil and gas deposits in the Sif Fatima II concession in the Algerian desert's Berkine North Basin. The Rhourde Oulad Djemaa Ouest-1 (RODW-1) exploration well, the third of five to be drilled in the concession by Eni and Sonatrach, is part of a more significant effort to advance upstream activity in the North African country., July 2022: The Production Sharing Contract (PSC) was signed by Eni and TotalEnergies with Algerian state-owned national oil company SONATRACH, and American exploration firm Oxy is expected to assist the North African country in addressing some of the critical challenges impeding its hydrocarbons market growth.. Key drivers for this market are: 4., Increase in Oil and Gas Investments 4.6.1.2 Increasing Refining Capacity, and Plans to Improve Oil Production. Potential restraints include: 4., Increase in Oil and Gas Investments 4.6.1.2 Increasing Refining Capacity, and Plans to Improve Oil Production. Notable trends are: Upstream Sector to Dominate the Market.

The 2025 annual OPEC basket price stood at ***** U.S. dollars per barrel as of June. This would be lower than the 2024 average, which amounted to ***** U.S. dollars. The abbreviation OPEC stands for Organization of the Petroleum Exporting Countries and includes Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iraq, Iran, Kuwait, Libya, Nigeria, Saudi Arabia, Venezuela, and the United Arab Emirates. The aim of the OPEC is to coordinate the oil policies of its member states. It was founded in 1960 in Baghdad, Iraq. The OPEC Reference Basket The OPEC crude oil price is defined by the price of the so-called OPEC (Reference) basket. This basket is an average of prices of the various petroleum blends that are produced by the OPEC members. Some of these oil blends are, for example: Saharan Blend from Algeria, Basra Light from Iraq, Arab Light from Saudi Arabia, BCF 17 from Venezuela, et cetera. By increasing and decreasing its oil production, OPEC tries to keep the price between a given maxima and minima. Benchmark crude oil The OPEC basket is one of the most important benchmarks for crude oil prices worldwide. Other significant benchmarks are UK Brent, West Texas Intermediate (WTI), and Dubai Crude (Fateh). Because there are many types and grades of oil, such benchmarks are indispensable for referencing them on the global oil market. The 2025 fall in prices was the result of weakened demand outlooks exacerbated by extensive U.S. trade tariffs.

South Africa's GDP was estimated at just over 403 billion U.S. dollars in 2024, the highest in Africa. Egypt followed, with a GDP worth around 380 billion U.S. dollars, and ranked as the second-highest on the continent. Algeria ranked third, with about 260 billion U.S. dollars. These African economies are among some of the fastest-growing economies worldwide. Dependency on oil For some African countries, the oil industry represents an enormous source of income. In Nigeria, oil generates over five percent of the country’s GDP in the third quarter of 2023. However, economies such as the Libyan, Algerian, or Angolan are even much more dependent on the oil sector. In Libya, for instance, oil rents account for over 40 percent of the GDP. Indeed, Libya is one of the economies most dependent on oil worldwide. Similarly, oil represents for some of Africa’s largest economies a substantial source of export value. The giants do not make the ranking Most of Africa’s largest economies do not appear in the leading ten African countries for GDP per capita. The GDP per capita is calculated by dividing a country’s GDP by its population. Therefore, a populated country with a low total GDP will have a low GDP per capita, while a small rich nation has a high GDP per capita. For instance, South Africa has Africa’s highest GDP, but also counts the sixth-largest population, so wealth has to be divided into its big population. The GDP per capita also indicates how a country’s wealth reaches each of its citizens. In Africa, Seychelles has the greatest GDP per capita.