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

Analysis: China Raises Hong Kong Rhetoric to Tiananmen Level

A front-page commentary in The People’s Daily called the current demonstrations 'chaos,' the same word Party officials used 25 years ago to describe the Tiananmen Square protests More

US Airstrikes Anger Syrian Civilians Fleeing Their Homes

Pentagon officials say they have seen no credible evidence of civilian deaths caused by US airstrikes against Islamic State militants More

Child Sexual Exploitation to Worsen in SE Asia

Southeast Asia’s planned economic integration is a key step for boosting the region’s productivity, but carries downsides as well 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.
The Legacy of Jimmy Carter: The Preacher from Plainsi
X
October 01, 2014 10:45 AM
It is common in the United States to see tourists flock to sites associated with America's presidents. Some are privately owned and others are run by the National Park Service or the National Archives -- but most have helped draw business and people into the towns and cities where they are located. As VOA’s Kane Farabaugh reports, there is one particular presidential hometown that is unique in what it has to offer those who make the trip.
Video

Video The Legacy of Jimmy Carter: The Preacher from Plains

It is common in the United States to see tourists flock to sites associated with America's presidents. Some are privately owned and others are run by the National Park Service or the National Archives -- but most have helped draw business and people into the towns and cities where they are located. As VOA’s Kane Farabaugh reports, there is one particular presidential hometown that is unique in what it has to offer those who make the trip.
Video

Video Hong Kong Protests Draw New Supporters on National Holiday

On the 65th anniversary of the founding of Communist China, Hong Kong protesters are hoping to stage the largest pro-democracy demonstration since the 1989 Tiananmen protests. VOA's Brian Padden visited one of the protest sites mid-day, when the atmosphere was calm and where the supporters were enthusiastic about joining what they are calling the umbrella revolution.
Video

Video India's PM Continues First US Visit

India's prime minister is on his first visit to Washington, to strengthen political and economic ties between the world's oldest and the world biggest democracies. He came to the U.S. capital from New York, the first stop on his five-day visit to the country that denied him an entry visa in the past. From Washington, Zlatica Hoke reports Modi seemed most focused on attracting foreign investment and trade to increase job opportunities for his people.
Video

Video Malaysia Struggles to Stop People Joining Jihad

Malaysian authorities say militant groups like the so-called "Islamic State" have used social media to entice at least three dozen Malaysian Muslims to fight in what they call "jihad" in Syria and Iraq. As Mahi Ramkrishnan reports from Kuala Lumpur, counterterrorism police are deeply worried about what could happen when these militants return home.
Video

Video Could US Have Done More to Stop Rise of Islamic State?

President Obama says airstrikes against Islamic State militants in Syria will likely continue for some time because, in his words, "there is a cancer that has grown for too long." So what if President Obama had acted sooner in Syria to arm more-moderate opponents of both the Islamic State and the Syrian government? VOA State Department Correspondent Scott Stearns reports from the United Nations.
Video

Video Treasure Hunters Seek 'Hidden Treasure' in Central Kenya

Could a cave in a small village in central Kenya be the site of buried treasure? A rumor of riches, left behind by colonialists, has some residents dreaming of wealth, while others see it as a dangerous hoax. VOA's Gabe Joselow has the story.
Video

Video Ebola Patients Find No Treatment at Sierra Leone Holding Center

At a holding facility in Makeni, central Sierra Leone, dozens of sick people sit on the floor in an empty university building. They wait in filthy conditions. It's a 16-hour drive by ambulance to Kailahun Ebola treatment center. Adam Bailes was there and reports on what he says are some of the worst situations he has seen since the beginning of this Ebola outbreak. And he says it appears case numbers may already be far worse than authorities acknowledge.
Video

Video Identifying Bodies Found in Texas Border Region

Thousands of immigrants have died after crossing the border from Mexico into remote areas of the southwestern United States in recent years. Local officials in south Texas alone have found hundreds of unidentified bodies and buried them in mass graves in local cemeteries. Now an anthropologist and her students at Baylor University have been exhuming bodies and looking for clues to identify them. VOA’s Greg Flakus has more from Waco, Texas.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid