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

Will Cuba Follow the Southeast Asia Model?

Decision to restore ties between US and Cuba has some debating whether it will lead to enhancement or regression of democracy for Communist island nation More

Kenyan Designer Finds Her Niche in Fashion Industry

‘Made in China’ fabrics underlie her success More

Report: CIA, Israel's Mossad Killed Senior Hezbollah Commander

The Washington Post story says Imad Mughniyah was killed instantly by a bomb "triggered remotely" from Tel Aviv by Mossad agents More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Jefferson's Library Continues to Impress, 200 Years Lateri
X
Deborah Block
January 31, 2015 12:12 AM
Two hundred years after the U.S. Congress purchased a huge collection of books belonging to former President Thomas Jefferson, it remains one of America’s greatest literal treasures and has become the centerpiece of Washington’s Library of Congress. VOA’s Deborah Block reports.
Video

Video Jefferson's Library Continues to Impress, 200 Years Later

Two hundred years after the U.S. Congress purchased a huge collection of books belonging to former President Thomas Jefferson, it remains one of America’s greatest literal treasures and has become the centerpiece of Washington’s Library of Congress. VOA’s Deborah Block reports.
Video

Video Egypt's Suez Canal Dreams Tempered by Continued Unrest

Egypt plans to expand the Suez Canal, raising hopes that the end of its economic crisis may be in sight. But some analysts say they expect the project may cost too much and take too long to make life better for everyday Egyptians. VOA's Heather Murdock reports.
Video

Video Threat of Creeping Lava Has Hawaiians on Edge

Residents of the small town of Pahoa on the Big Island of Hawaii face an advancing threat from the Kilauea volcano. Local residents are keeping a watchful eye on creeping lava. Mike O’Sullivan reports.
Video

Video Pro-Kremlin Youth Group Creatively Promotes 'Patriotic' Propaganda

As Russia's President Vladimir Putin faces international pressure over Ukraine and a failing economy, unofficial domestic groups are rallying to his support. One such youth organization, CET, or Network, uses creative multimedia to appeal to Russia's urban youth with patriotic propaganda. VOA's Daniel Schearf reports.
Video

Video Filmmakers Produce Hand-Painted Documentary on Van Gogh

The troubled life of the famous 19th century Dutch painter Vincent van Gogh has been told through many books and films, but never in the way a group of filmmakers now intends to do. "Loving Vincent " will be the first ever feature-length film made of animated hand-painted images, done in the style of the late artist. VOA’s George Putic reports.
Video

Video Issues or Ethnicity? Question Divides Nigeria

As Nigeria goes to the polls next month, many expect the two top presidential contenders to gain much of their support from constituencies organized along ethnic or religious lines. But are faith and regional blocs really what political power in Nigeria is about? Chris Stein reports.
Video

Video Rock-Consuming Organisms Alter Views of Life Processes

Scientists thought they knew much about how life works, until a discovery more than two decades ago challenged conventional beliefs. Scientists found that there are organisms that breathe rocks. And it is only recently that the scientific community is accepting that there are organisms that could get energy out of rocks. Correspondent Elizabeth Lee reports.
Video

Video Paris Attacks Highlight Global Weapons Black Market

As law enforcement officials piece together how the Paris and Belgian terror cells carried out their recent attacks, questions are being asked about how they obtained military grade assault weapons - which are illegal in the European Union. As VOA's Jeff Swicord reports, experts say there is a very active worldwide black market for these weapons, and criminals and terrorists are buying.
Video

Video Activists Accuse China of Targeting Religious Freedom

The U.S.-based Chinese religious rights group ChinaAid says 2014 was the worst year for religious freedom in China since the end of the Cultural Revolution. As Ye Fan reports, activists say Beijing has been tightening religious controls ever since Chinese leader Xi Jinping came to office. Hu Wei narrates.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.
Video

Video Former Sudan 'Lost Boy' Becomes Chess Master in NYC

In the mid-1980’s, thousands of Sudanese boys escaped the country's civil war by walking for weeks, then months and finally for more than a year, up to 1,500 kilometers across three countries. The so-called Lost Boys of the Sudan had little time for games. But one of them later mastered the game of chess, and now teaches it to children in the New York area. VOA’s Bernard Shusman in New York has his story.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid