Energy
Morocco has very few reserves of its own and has been affected by the high oil prices of 2007 and early 2008. The country has to import 96% of its energy requirements and the national oil bill for the first quarter of 2008 was $1.1 billion—69% higher than for the same period in 2007. The kingdom is working to diversify its energy sources, especially to develop renewable energy, with a particular focus on wind energy. Solar power and nuclear energy are also part of the strategy, but development of the former has been slow and there has been minimal progress on the latter, aside from an announcement of collaboration with France in 2007.
In November 2009 Morocco announced a solar energy project worth $9 billion which officials said will account for 38 percent of the North African country's installed power generation by 2020. Funding would be from a mix of private and state capital. The ceremony was attended by U.S. Secretary of State Hillary Clinton and the Moroccan king. The project will involve five solar power generation sites across Morocco and will produce 2,000 megawatts of electricity by 2020. Germany has expressed its willingness to participate in the development of Morocco's solar energy project which the country has decided to carry out, as did the World Bank. Germany will also take part in the development of a water-desalination plant.
The government plans to reorganise its subsidy system, which is a heavy burden on government finances. In the short term these subsidies are helping to ease the burden but they cannot keep rising indefinitely, and sooner or later the load will have to be shared out. In the short term, national consumption per capita is expected to rise from the current level of 0.4 tonnes of oil equivalent (toe) to as much as 0.90 toe in 2030, a good indication of development, but a massive challenge as well. The input of renewable energy is a matter of particular importance.
According to a 2006 estimate by the Oil and Gas Journal (OGJ), Morocco has proven oil reserves of 1,070,000 barrels (170,000 m3) and natural gas reserves of 60 billion cubic feet (1.7×109 m3). Morocco may have additional hydrocarbon reserves, as many of the country's sedimentary basins have not yet been explored. The Moroccan Office of Hydrocarbons and Mining (ONHYM) has become optimistic about finding additional reserves—particularly offshore—following discoveries in neighboring Mauritania.
Recent activity in Western Sahara, which is believed to contain viable hydrocarbon reserves, has been controversial. In 2001, Morocco granted exploration contracts to Total and Kerr-McGee, angering Premier Oil and Sterling Energy, which previously had obtained licenses from the Polisario government. In 2005, the government-in-exile of the Western Sahara invited foreign companies to bid on 12 contracts for offshore exploration, with hopes of awarding production sharing contracts by the end of 2005.
Read more about this topic: Economy Of Morocco
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