“Let's stop criticizing our banks!”

More than ten years after the subprime mortgage crisis, all the light has not been shed, and yet the idea of ​​the guilt of the banks has taken hold firmly in people's minds. They are even blamed for the double fault, since after playing with fire and triggering the crisis, they allegedly asked for help from the States. This unanimous condemnation, the result of incomplete analyzes, is a heavy component of the bank bashing that has raged since then and unfortunately works against our interests. We are indeed at a critical moment when Europe, faced with the domination of American finance and the dollar, must develop its own financial capacities. The development of a strong pan-European financial sector is therefore essential if we particularly want to foster the emergence of future European gafas. 
If it is vain to hope for the complete disappearance of this bank bashing and, one might say, of the bashing market whose roots plunge both in history and in ignor…

Gas: Algeria struggles to secure its future on the international market

If nothing is done, the underperformance of Algerian gas on the export market could increase further over the next five years. Between a strategic plan to attract investors in order to boost production, reassessment of the free trade agreement with the EU and internal reorganization, the brains are running at full speed. 

The multiple outings of the last few days, from President Abdelmadjid Tebboune to Minister of Energy Abdelmadjid Attar via the Algerian Ambassador to Brussels Amar Belani, say a lot about the reflections underway for the future of gas in the Algeria.

Dark horizon 2025 if nothing is done

The third largest gas exporter in the world after Russia and Norway, Algeria, which has already recorded large volume losses in recent years, could underperform even more if nothing is done. "Exports over the period 2025-2030 will be between 26 and 30 billion cubic meters per year," the energy minister said in an interview with Ennahar TV on Sunday. This represents a drop of 41% to 49% compared to the 51.4 billion cubic meters exported in 2018 and 53% to 59% compared to the 64 billion cubic meters sold on the international market in 2005. In 2020, the ministry provides for the export of 40 billion cubic meters of natural gas.

Abdelmadjid Attar explains this poor performance by three main factors: stagnant production, rising domestic consumption and insufficient investment. 



In Algeria, hydrocarbons, a key sector of the economy, represent a vital financial windfall. In total, 95% of external income comes from oil and gas exploitation. While the disruptions on international markets have plunged the country for several years into a major economic crisis, this has only been exacerbated by the Covid-19 pandemic, in a context of ultra-low economic diversification .

Plan for large-scale exploration from 2021

Currently, the state is studying all avenues that can allow it to avoid sinking further into a tense social context. For these reasons in particular, President Abdelmadjid Tebboune has called for a reassessment of the free trade agreement with the European Union (EU), under the lead of Algerian Minister of Trade Kamel Rezig. In sight, the European Green Pact for which Algeria wants to improve its positioning, thus boosting and its export figures. Recalling that this North African country supplies more than 12% of the EU's natural gas imports, the Algerian ambassador in Brussels, Amar Belani, was very optimistic in an interview with Africa-Asia .

Beside, Algiers is currently concocting its plan for large-scale gas exploration. According to the Minister of Energy, who clarified that the country has more than 2,500 billion in natural gas reserves, an international call for tenders should be launched in early 2021 targeting foreign investors. 



 
The ministry is also considering a restructuring of Sonatrach (the national oil and gas company) in crisis for several years. Moreover, the state is planning an independent audit to examine the flaws. In short, there is work to be done to revitalize the Algerian gas sector and the national economy more broadly.

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