News / Africa

Some Looking Forward to Recovery of Libyan Oil Production

Some Looking Forward to Recovery of Libyan Oil Production
Some Looking Forward to Recovery of Libyan Oil Production
William Ide

Although fighting continues in parts of Libya, and a bit of uncertainty remains, some are already beginning to look at the prospects of recovery. Oil companies, and countries that rely on imports of natural resources from Libya, are planning for the full restoration of the country's oil industry.


As opposition forces celebrate their capture of Moammar Gadhafi's headquarters compound, the work of rebuilding Libya’s war-ravaged cities and infrastructure is one of a host of challenges the country will have to deal with in the days ahead.

Oil is the country's key industry and getting oil production and exports back on-line is crucial. Libya has the largest oil reserves in Africa and before the uprising began, the country produced about 1.8 million barrels of oil a day, or about two percent of the world’s production.

Luckily, unlike the damage suffered by cities and towns, the oil industry appears to be largely unscathed.

Samuel Ciszuk, a senior Middle East analyst at IHS Energy, says Libya could quickly return to pre-war production levels. "Companies with large production capacity in Libya, for instance ENI but also companies like Repsol and so on which have a lot of facilities in the southwest as far as we know has escaped damage almost completely," he said.

No one will know for sure how long it will take until the country's export and production facilities are inspected and back on line.

Over the past several days, global oil prices have largely followed developments in Libya. As Moammar Gadhafi's grip on power began slipping, following the rebels' quick offensive into Tripoli, prices dropped. But then began rising as pockets of fighting persisted and as other global economic volatility put pressure on the cost of crude.

Most of the Libya’s oil is exported to Europe, with Italy receiving the largest portion by far. China and other countries are major importers as well.

Ahmed Jehani, chairman of the stabilization team of Libya’s National Transition Council, says oil agreements made before the Gadhafi government's downfall will be honored. "All contracts will be honored. All lawful contracts will be offered, whether they are in the oil and gas complex or in the contracting. At the moment it is not for this government to decide whether they will be revoking any contract," he said.

The international community has expressed its readiness to come to Libya's aid and help it rebuild. And the United nations is holding a meeting on Libya’s future later this week.

Libya's infrastructure was weak before the war started, some regional analysts note, so the amount of reconstruction needed is limited. But building up a new Libya will take money.

Michele Dunne, who heads the Rafik Hariri Center for the Middle East at the Atlantic Council, says that is something Libya is well prepared for. “Libya will not face the problem that some other countries have had because they’ll have ready money to pay for it. If you’ve got ready money to pay for the reconstruction, then its much less of a problem," he said.

A quick return of oil production will help, Dunne says. As will the return to Libya of billions of dollars worth of Moammar Gadhafi’s frozen assets overseas. The assets were frozen by the U.N. in February and now the international community is working to get the urgently needed funds to the anti-Gadhafi opposition as soon as possible.

You May Like

EU Court Fines Poland for Hosting CIA 'Black Sites'

Ruling is first time a court has acknowledged suspects were held and tortured at the sites, under US program launched following the 9/11 terrorist attacks More

Migrant Issues Close to Home Spur Groups to Take Action

Groups placing water, food in the desert, or aiding detainees after release, have one common goal: no more deaths of migrants crossing illegally into the US More

Video At AIDS Conference, Prevention Pill Stirs Excitement

Truveda shows promise, spurring debate over access and other approaches More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Treatment for Childhood Epilepsy Heats up Medical Marijuana Debatei
X
Shelley Schlender
July 24, 2014 6:43 PM
In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Treatment for Childhood Epilepsy Heats up Medical Marijuana Debate

In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Airbus Adds Metal 3D Printed Parts to New Jets

By the end of this year, European aircraft manufacturing consortium Airbus plans to deliver the first of its new, extra-wide-body passenger jets, the A350-XWB. Among other technological innovations, the new plane will also incorporate metal parts made in a 3-D printer. VOA's George Putic has more.
Video

Video Death Toll From Israel-Gaza Conflict Surpasses 700

Gaza officials say a shelling hit a compound housing a United Nations-run school in the Gaza Strip, killing more than a dozen people, during an Israeli offensive in the area. Heavy fighting between the Israeli military and Hamas militants continued on Thursday, pushing up the death toll. So far, more than 730 Palestinians and 35 Israelis have been killed in the conflict. VOA's Scott Bobb has the latest from Jerusalem.
Video

Video AIDS Conference Welcomes Exciting Developments in HIV Treatment, Prevention

Significant strides have been made in recent years toward the treatment and prevention of HIV, the virus that causes AIDS. This year, at the International AIDS Conference, the AIDS community welcomed progress on a new pill that may prevent transmission of the deadly virus. VOA’s Anita Powell reports from Melbourne, Australia.
Video

Video Israel Targets Gaza Supply Tunnels

The Israeli military has launched a ground operation in Gaza to destroy the myriad tunnels that may have been used to smuggle weapons to Hamas. VOA's Zlatica Hoke reports that could mean more hardship for the people of Gaza, who obtain some of their essential supplies through these underground passages
Video

Video Researchers Target Low-Cost Avatar Technology

Scientists at the University of Southern California Institute for Creative Technologies say 3-dimensional representations could revolutionize social media. Elizabeth Lee has more from Los Angeles.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.

AppleAndroid