Rentierism in the Algerian economy based on oil and natural gas

This essay analyzes Algeria’s degree of adaptation toward possessing the constituent features of an oil and gas rentier economy, and whether its current status could be threatened by changes to its energy policy. With this aim, the article first uses empirical evidence to analyze different rentier features of the Algerian economy (the importance of the hydrocarbon sector, Algerian NOC Sonatrach’s role in energy policy and revenue distribution). Second, the circuit that perpetuates rentier logic is described, the main conclusion being that the Algerian economy does indeed offer the very conditions that guarantee the self-perpetuation of rentierism. However, this conclusion is jeopardized by uncertainties stemming from two potential changes in the national status of the hydrocarbons sector: a greater presence of foreign hydrocarbon companies in Algeria, and growing internationalization by Sonatrach.