The Middle East and North Africa (MENA) region remains central to global energy security, accounting for a significant share of the world’s proven oil reserves. Yet long-term production data suggest that depletion is a structural reality. Mature fields in countries such as Algeria, Libya and Egypt show declining output, while maintaining production increasingly requires enhanced recovery techniques and higher levels of investment.

This trend is not uniform. Gulf producers such as Saudi Arabia and the United Arab Emirates continue to expand capacity. But in North Africa, depletion has become a pressing challenge. Algeria’s production peaked in the mid-2000s and has since faced a slow decline. Libya, despite its vast reserves, has seen output constrained by both geological and political obstacles. The effect is to tighten the balance between regional supply and rising domestic demand, leaving governments with fewer resources to fund social and economic priorities.

Netrako and the Realities of Operating in North Africa

Against this backdrop, companies such as Netrako provide a lens on how service providers adapt. Operating across North Africa and the Middle East, Netrako has long been involved in supporting upstream, midstream and downstream projects. Its work highlights the complexity of extending the life of ageing assets and ensuring reliable operations in environments marked by volatility.

In countries like Libya and Algeria, procurement and financing difficulties compound geological decline. Currency restrictions, logistical constraints and fragmented regulatory regimes make it costly to maintain infrastructure. Service firms, rather than simply executing projects, often find themselves helping clients navigate political and financial uncertainty as much as technical risk.

Economic Consequences of Depletion

Oil depletion carries consequences beyond the energy sector. For hydrocarbon-dependent economies, declining production reduces foreign exchange earnings, weakens fiscal stability and narrows the space for economic diversification. Algeria has struggled to attract new investment in exploration, while Libya’s revenues remain hostage to fluctuating output levels. Egypt, once a net exporter, has become a net importer, reflecting the broader challenge of balancing domestic consumption with diminishing reserves.

This context places a premium on efficiency. Firms that can extend the life of existing fields, improve recovery rates, and reduce operating costs are in demand. Yet even the most advanced engineering cannot fully offset geological decline. The strategic question is how governments in the region manage the transition from abundance to relative scarcity without undermining political stability.

Procurement, Policy and Long-Term Supply

Procurement is one of the less visible but most decisive dimensions of this challenge. As reserves deplete, the complexity of extraction increases, requiring more sophisticated equipment and services. But in markets such as Libya, restrictions on foreign currency and import regulations complicate the ability of operators to acquire what they need. This mismatch between technical requirements and institutional constraints creates structural delays and rising costs.

Companies like Netrako demonstrate how procurement becomes a form of strategic mediation—balancing local realities with international standards. Yet the underlying issue remains: oil depletion amplifies the cost and difficulty of sustaining output, particularly in states where governance and financing are already under strain.

Towards a Managed Transition

The long-term trajectory is clear: oil in the MENA region is abundant but not inexhaustible. North African producers, in particular, face the dual challenge of declining fields and rising domestic demand. Addressing this requires investment not only in enhanced recovery and new exploration but also in economic policies that anticipate lower hydrocarbon revenues.

For service firms such as Netrako, the task is not simply to deliver projects but to operate within a context of diminishing margins and heightened uncertainty. Their experience shows that technical expertise, procurement discipline and local adaptation can mitigate some risks, but cannot erase the structural reality of depletion.

The broader conclusion is that oil remains vital to the region’s stability, yet its role is evolving. As reserves mature, the balance between production, consumption and export earnings will become tighter. How states and companies navigate this transition will shape both the economic future of North Africa and the stability of global energy markets.