News / Africa

Libya’s Oil Output Drops Further

In this March 5, 2011 file photo, an anti-government rebel sits with an anti-aircraft weapon in front an oil refinery, after the capture of the oil town of Ras Lanouf, eastern Libya. The official Libyan news agency said Sunday, April 6, 2014 that the country's main militia in the east has agreed to hand back control of four oil terminals it captured and shut down last summer in its demand for a share in oil revenues. The shutdown has cost Libya millions of dollars. (AP Photo/Hussein Malla, File)
In this March 5, 2011 file photo, an anti-government rebel sits with an anti-aircraft weapon in front an oil refinery, after the capture of the oil town of Ras Lanouf, eastern Libya. The official Libyan news agency said Sunday, April 6, 2014 that the country's main militia in the east has agreed to hand back control of four oil terminals it captured and shut down last summer in its demand for a share in oil revenues. The shutdown has cost Libya millions of dollars. (AP Photo/Hussein Malla, File)

Multimedia

Audio
  • Listen to De Capua report on Libya and South Sudan oil

Joe DeCapua
Libya has much of the world’s highest quality crude oil. But since the fall of long-time leader Moammar Gadhafi in 2011, production has been sporadic and on the decline.
 
After assessing Libya’s political instability, violence and armed groups battling for control, John Kingston summed up prospects for the country’s oil industry this way:
 
“There’s essentially no good news there.”
 
Kingston is director of news for Platts, which provides information on the global energy, petrochemical, metals and agriculture industries. He said during Gadhafi’s rule, Libya produced about 1.6 million barrels a day.
 
Listen to De Capua report on Libya and South Sudan oil
Listen to De Capua report on Libya and South Sudan oili
|| 0:00:00
...
 
🔇
X

“Their quality of crude is extremely high. So, for production of transportation  fuels, like gasoline and diesel, if you lose a barrel out of Libya, you have to produce more than a barrel of heavier crude somewhere else to make up for it. Not all barrels are alike. And a Libyan barrel is more equal than others,” he said.
 
But not much is getting to market these days.
 
“Less and less,” he said, “That’s the problem. In fact it seems that exports out of a port called Marsa El Hariga, which was a very important port, appear to have stopped. And as a result of that the Libyans are returning to crudes that they were exporting to serve their own needs. So that’s lesser exports there.”
 
The port closed after just reopening last month. But even when Marsa El Hariga was open, April exports averaged just 167,000 barrels a day. With the port closed, exports should drop further.
 
“It can’t get much worse in terms of supply. I mean if you’re down to under 200,000 barrels a day, which is what it looks like right now, you could easily go to zero,” he said.
 
Asked whether Platts knows who’s in charge of Libya’s oil sector, Kingston said,” No, we don’t and nobody is really in charge of the oil fields. And it’s not just a question of the fields, really, it’s a question of the ports. The fields are located miles away from any kind of population centers. So, the issue here is the logistical system that’s needed to export this oil. That is what is in turmoil as a result of there [being] no central government and various rebel groups are in charge of some of the port facilities. So, that’s the problem.”
 
In March, a militia group had attempted to sell some of the country’s oil. They loaded it on a tanker, which was thought to be destined for North Korea. Libya’s weak government was opposed to the sale. Its efforts to seize the tanker failed, reportedly because of rough seas and bad weather. It also had threatened to bomb the vessel. It never got the chance. President Obama ordered U.S. Navy Seals to commandeer the ship.
 
Kingston said that the militia had little chance of success, anyway, since it was not part of the international banking or shipping systems.
 
The longer-term concerns in Libya, he said, are the country’s underground oil reservoirs. These are porous or fractured rock formations that contain oil or natural gas. There’s a good chance they’re being damaged.
 
“Oil reservoirs are kind of a fragile thing, and they need tender loving care at all times. If you shut-in production it tends to damage the reservoir. So, even if democracy broke out tomorrow and everybody was peaceful in that country, it’s highly unlikely that you’re going to get back up to the level that you were pre-Gadhafi overthrow anytime soon,” said Kingston.
 
Platts is also monitoring developments in South Sudan, which has been mired in conflict since December.
 
“There is a place in South Sudan called Unity State, and production there remains shut-in that probably has taken 40 to 50,000 barrels a day off of the markets. So, every barrel matters particularly when markets are relatively tight, which they are. But South Sudan is just yet one more country in a line-up of countries that are wracked by some level of strife that has tightened the world oil supply. Libya is at the top of that list,” he said.
 
Kingston said Sudan’s oil production has not been affected by the South Sudan conflict. Production remains around 50 to 60,000 barrels a day.
 
Other countries where various problems recently affected oil production include Iran, Venezuela and Syria. The conflict there has removed about 250,000 barrels a day off the market.
 
“So when you add up all those it’s a real murderer’s row of problems. Luckily, the United States and Canada have continued to increase their production, particularly the U.S., and that has softened the blow,” he said.

Kingston said that the U.S. has been able to sharply boost oil production due to techniques that extract oil from shale deposits.

You May Like

Video British Fighters On Frontline of ISIS Information War

It’s estimated that several hundred British citizens are fighting for Islamic State alongside other foreign jihadists More

Multimedia Hit Song Delivers Ebola Message in Liberia

'Ebola in Town' has danceable beat, while also delivering serious message about avoiding infection More

Video New Technology Gives Surgeons Unprecedented Views of Patients’ Bodies

Technology offers real-time, interactive, medical visualization and is multi-dimensional More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Native Bees May Help Save Cropsi
X
Deborah Block
August 22, 2014 12:23 AM
U.S. President Barack Obama has called for a federal strategy to promote the health of bees that have been declining. The honeybee has been waning due to parasites, disease and pesticides. Wild bees may be used to take over their role as crop pollinators. Scientists first need to learn a lot more about wild bees, says biologist Sam Droege, who is pioneering the first national inventory on native bees. VOA’s Deborah Block went to his research laboratory in Beltsville, Maryland, to bring you more.
Video

Video Native Bees May Help Save Crops

U.S. President Barack Obama has called for a federal strategy to promote the health of bees that have been declining. The honeybee has been waning due to parasites, disease and pesticides. Wild bees may be used to take over their role as crop pollinators. Scientists first need to learn a lot more about wild bees, says biologist Sam Droege, who is pioneering the first national inventory on native bees. VOA’s Deborah Block went to his research laboratory in Beltsville, Maryland, to bring you more.
Video

Video US Defense Officials Plan for Long-Term Strategy to Contain Islamic State

U.S. defense officials say American air strikes in Iraq have helped deter Islamic State militants for the time being, but that a broad international effort is needed to defeat the extremists permanently. Defense Secretary Chuck Hagel warned Thursday that the group formerly known as the Islamic State in Iraq and the Levant, or ISIL, is better organized, and financially and militarily stronger than any other known terrorist group. Zlatica Hoke has more.
Video

Video Drug-Resistant Malaria Spreads in Southeast Asia

On Thailand’s border with Myanmar, also known as Burma, a malaria research and treatment clinic is stepping up efforts to eliminate a drug-resistant form of the parasite - before it spreads abroad. Steve Sandford reports from Mae Sot, Thailand.
Video

Video Gaza Conflict, Hamas Popularity Challenge Abbas

The Palestinian unity government of Mahmoud Abbas has failed to convince Hamas to agree to Egyptian-negotiated terms with Israel on a Gaza cease-fire. VOA State Department Correspondent Scott Stearns reports on what the Gaza conflict means for President Abbas, with whom U.S. officials have worked for years on a two-state solution to the Israeli-Palestinian conflict.
Video

Video Nigeria's 'Nollywood' Movie Industry Rolls in High Gear

Twenty years after its birth in a video shop in Lagos, Nigeria's "Nollywood" is one of the most prolific film industries on earth. Despite low budgets and whirlwind production schedules, Nigerian films are wildly popular in Africa and industry professionals say they hope, in the future, their films will be as great in quality as they are in quantity. Heather Murdock has more for VOA from Lagos.
Video

Video UN Launches 'Biggest Aid Operation in 30 Years' in Iraq

The United Nations has launched what it describes as one of the biggest aid operations in 30 years in northern Iraq, as hundreds of thousands of refugees flee the extremist Sunni militant group calling itself the Islamic State. As Kurdish and Iraqi forces battle the Sunni insurgents, the fighting has forced more people to flee their homes. Kurdish authorities say the international community must act now to avert a humanitarian catastrophe. Henry Ridgwell reports for VOA from London.
Video

Video Cambodian American Hip Hop Artist Sings of Personal Struggles

A growing underground movement of Cambodian American hip hop artists is rapping about the struggles of living in urban America. Most, if not all of them, are refugees or children of refugees who came to the United States from Cambodia to escape the Khmer Rouge genocide of the 1970s. Through their music, the artists hope to give voice to immigrants who have been struggling quietly for years. Elizabeth Lee reports from Long Beach, California.
Video

Video African Media Tries to Educate Public About Ebola

While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.

AppleAndroid