Double blow for Syria’s energy security

The decline in crude prices has taken oil-producing nations by surprise, but few will be hurt as much as Syria, which is grappling with rapidly falling supply. The double blow has huge implications for the economy.

“Energy is a problem,” says Nabil Sukkar, an economist who heads the Syrian Consulting Bureau. “Our energy-generating capacity is below demand and our oil reserves are falling, while our gas reserves have not been developed rapidly enough.” Dwindling Syrian resources are often cited by analysts as one of the main reasons the country needs to end its international isolation, a process that has now started with improved ties with Europe. David Miliband, UK foreign secretary, was in Damascus this week in the latest sign of a thaw in ties between the west and Syria.


While fighting off pressure from the US and other western states over alleged interference in Iraq, Lebanon and the Palestinian territories, Syria has struggled for economic survival.

The energy sector comprises a large chunk of its economy and oil revenues have funded a quarter of the expenditure in the nation’s huge public sector. Five years ago oil comprised more than half of Syria’s $29bn in income, but last year it contributed only $3.8bn to revenues totalling $22bn (