follow us like us subscribe contact us
Loading, please wait

Libya: The Fate of Oil under an Impotent Government

By Editorial Dept | Fri, 20 September 2013 22:16 | 0

As all attention is focused on Syria, and wondering how oil prices might respond to a US strike, where oil is concerned the focus should be on Iraq, which is about to implode from sectarian violence, and Libya, which is now producing at about one-tenth its capacity, challenged by a variety of militant forces created by the last big intervention two years ago.

In this report we examine the current situation in Libya, and how this is affecting production and global oil prices.

Crisis in Full Force

The oil industry has all but been halted, and black outs are becoming more frequent as utilities don’t have the fuel to provide. This will further feed the fire of strikes, protests and the multi-pronged battle for control of the country’s resources.

The crisis began two years ago with the overthrow of Muammar Qaddafi, but in August things took a definitive turn for the worse, with armed groups seizing major oil export terminals and demanding autonomy for the eastern region. Now the crisis has reached the west where other militant formations ominously charged with guarding the country’s pipelines and oil fields are seeking to profit on the momentum of the strikers and protesters in the east.

The interim government cannot manage this crisis. It’s already been forced to compromise, agreeing just last week to a 20% wage hike across the board for civil servants, and including oil security forces in this mix. At the same time, the…

To read the rest of this article Start a FREE subscription to our premium publication

Oil & Energy Insider - 30 day Free trial

30 day Free trial
A FREE Subscription Includes:
  • Investment advice normally reserved for hedge fund clients.
  • Market & sector research not available anywhere else.
  • Strategic advice from corporate & military intelligence analysts.
  • 9 Weekly Investment / intelligence reports.
  • Full access to all previous reports.
  • 30 days free trial.
Get FREE access to our research for 30 days

An essential resource for all investors in the energy sector whether you're a trader, fund manager or individual investor - this inside look at the energy markets is unlike any other report or service currently available.

About the author

More recent articles by Editorial Dept

Fri 18 July 2014
Too Many Coincidences
Fri 18 July 2014
Goodrich Petroleum Part 2
Fri 18 July 2014
Coal Enters New Phase of Insecurity
Fri 18 July 2014
Global Energy Advisory – 18th July 2014
Fri 18 July 2014
To Frack or Not to Frack