Algeria is the world's second largest exporter of natural gas, possesses reserves of natural gas sufficient to rank it among the top ten countries, and is one of the most attractive crude-oil exploration areas in the world. Algeria's ongoing civil war is therefore of concern to energy markets.

The conflict began with the government's annulment of election results in December 1991, when radical Islamic groups won over 80 percent of the vote, and has claimed roughly 60,000 lives. Although the fighting continues to inflict 40 to 50 casualties per week, it is usually centered in the capital of Algiers and other coastal towns, far from most oil and gas fields and production facilities. To date, despite scattered attacks on them, Algeria's oil and gas industries have escaped serious damage. The government's efforts to appeal to moderates among the Islamic groups, along with other political developments, have apparently led to a decline in the intensity of the conflict.

Economically, Algeria presents a mixed picture. Inflation is projected at 37 percent for 1996, a 7-point increase over last year. Unemployment is over 25 percent. Algeria's total foreign debt is nearly $32 billion, about 46 percent of gross domestic product (GDP). On the other hand, GDP growth is expected to rise to 5 percent this year. The government is pursuing structural economic reforms and plans to diversify the country's export base beyond oil and gas, which currently account for 95 percent of export revenues.

Country Analysis Brief: Algeria, which has been newly updated, discusses the country's crude oil and natural gas assets, infrastructure, and performance; sketches Algeria's politics; and gives brief overviews of the country's demography, economy, and environment. It is available primarily via the Energy Information Administration's World Wide Web home page (http://www.eia.doe.gov).

For more information about this Country Analysis Brief, contact Lowell Feld, Office of Energy Markets and End Use, Energy Information Administration, at 202-586-9502 or via internet e-mail at lfeld@eia.doe.gov. Limited hard copies are available from Mr. Feld. If you are having technical problems with this site, please contact the EIA Webmaster at wmaster@eia.doe.gov or call 202-586-2753. For general information about energy, contact the National Energy Information Center at 202-586-8800 or via internet e-mail infoctr@eia.doe.gov.

URL: http://www.eia.doe.gov/emeu/plugs/plalg.html