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Egypt's energy quagmire could sink al-Sisi
Reuters
Published: 18.02.14, 12:17
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3 Talkbacks for this article
1. Egypt - still steps from becoming the next Somalia
Raymond in DC ,   Washington, USA   (02.18.14)
Two years ago, when the US was debating whether it should continue military aid to the Morsi regime, I argued that, rather than sending tanks and F-16s (as it was doing), Egypt needed wheat and diesel fuel. Its foreign currency reserves were being depleted. And when they were, then what? Fast forward two years. It's still expending precious foreign currency on wheat, oil and gas, all of which are consumed at subsidized prices. It's no longer exporting gas to Israel, but Israel no longer needs Egyptian gas. (Jordan does, however.) And its currency reserves have been underpinned by Billions in help from Saudi Arabia (which wouldn't help a Brotherhood-led Egypt). Egypt remains a fragile state, just a crisis or two away from collapse.
2. #1
David   (02.18.14)
You are absolutely correct that Egypt is just a few steps from being the next Somalia. It's a question of time. It's already a failed state in many ways. But having said that, what difference would it have made if the U.S. sent Egypt wheat and oil/gas in 2011? It would only have induced a sense of complacency in the leadership and exacerbated the situation. In a way, Egypt is a sign of the dysfunction in all of the Arab world. It is the most populous Arab country and it cannot hide behind oil exports to prop up a failing culture like Saudi Arabia or the Gulf states can. Its population is increasing by 2 million per year. The fightning in Egypt will not be Sunni vs Shia. It will be Islamist/Jihadi vs "secularist" or pro-military. And Israel is right on the border.
3. The entire world ....
Sarah B ,   U.S.A. / Israel   (02.19.14)
... is scrambling for natural gas supplies. And Israel sits astride two of the largest natural gas fields ever discovered. I'm loving this.
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