Oil, and above all gas, have long been the main livelihood for Algeria. Its hydrocarbon wells stretch beneath the Sahara, shaping the country’s economy and its place on the international stage. The story echoes others in the region, yet Algeria’s path toward a rentier state and its balance of power continues to influence its politics and future prospects. Significant reserves, however, also become a bargaining chip for factions vying for control, complicating stability in the long run.
Oil, gas, and electricity are deeply intertwined in Algeria. The energy sector is a strategic arena where the state plays a decisive role. The national oil and gas company is described by experts as a tool of public intervention, shaping both domestic policy and regional diplomacy because gas remains a key asset on Algeria’s regional agenda. This dynamic connects internal welfare policies with international energy markets, underscoring how energy policy touches every corner of national life. [Mañé, Economic Policy in the Maghreb; attribution: Eurèlia Mañé]
Historically, revenue from oil and gas funded social programs that expanded schools, universities, and hospitals. In the 1970s, Algeria undertook a wave of nationalizations that strengthened public services and social protection, even as sovereignty over valuable resources was asserted on the international stage. Yet this reliance on hydrocarbons also created a vulnerability: as prices rise and fall, so does the country’s capacity to fund essential services from the same coffers. The resulting dependence becomes a double-edged sword in times of market stress. [citation: nationalization era and social policy impact]
the other side of the coin
The country’s greatest strength—the concentration of wealth in oil and gas—also reveals its fragile side. By centering much of the economy on extraction, Algeria risks being exposed when fossil fuel prices stay depressed. The late 1980s witnessed a dramatic downturn that emptied state coffers and sparked a financial and political crisis, underscoring how external price shocks can threaten internal stability. Riots and upheaval followed as citizens questioned the capacity of the state to deliver jobs, services, and hope.
In 2019, large-scale street protests reemerged as Algerians challenged the fifth term of President Abdulaziz Bouteflika and pressed for meaningful reforms. Beyond political change, demonstrators voiced a demand for economic prospects and a better future for young people—clear signals that the state’s grip on opportunity was waning and that redevelopment would require more than oil wealth alone. [2019 protests; attribution: contemporary Algerian politics]
libya uncertainty
Libya remains divided, with no central sovereign authority and regional power shared among competing groups. Despite several peace efforts and electoral attempts, the country is locked in a state of flux where balances of power shift and opacity governs outcomes. The 2011 upheaval against Muammar Gaddafi evolved into a protracted civil conflict, and no lasting transit into stability has been achieved. In this drifting landscape, regional actors such as Turkey, Russia, and Qatar have played roles, influencing the extraction and export of hydrocarbons amid the turmoil.
Hydrocarbon facilities are protected by local militias, and in recent years supply disruptions have become a tool in political pressure. In the spring of last year, for instance, factions loyal to Khalifa Haftar halted oil output to pressure the Government of National Unity in Tripoli, illustrating how control of energy resources can shape political leverage.
agreement between lebanon and israel
The regional scramble for offshore resources has pushed several states to pursue new deposits in the Mediterranean. Submerged reserves near the Lebanese and Israeli coasts have become a focal point of discussion, including a historic accord signed in October to define their shared maritime boundaries. Lebanon seeks gas pockets to bolster a struggling economy, while Israel views newly identified reserves as a path to greater energy independence. The evolving landscape highlights how cross-border energy projects can intersect with diplomacy, security, and economic reform.