The petroleum industry plays a key role in the Egyptian economy. It is one of four main sources of foreign exchange with Egypt being currently an oil exporter. Egyptian oil production comes from four main areas: the Gulf of Suez, the Western Desert, the Eastern Desert, and the Sinai Peninsula.

In addition to its role as an oil exporter, Egypt has strategic importance because of its operation of the Suez Canal and Sumed (Suez-Mediterranean) Pipeline. These are two routes for export of Persian Gulf oil. The Sumed pipeline is an alternative to the Suez Canal for transporting oil from the Persian Gulf region to the Mediterranean. The 200-mile pipeline runs from Ain Sukhna on the Gulf of Suez to Sidi Kerir on the Mediterranean.