• 23 mins WTI At 7-Month High On Supply Optimism, Kurdistan Referendum
  • 7 hours Permian Still Holds 60-70 Billion Barrels Of Recoverable Oil
  • 12 hours Petrobras Creditors Agree To $6.22 Billion Debt Swap
  • 16 hours Cracks Emerge In OPEC-Russia Oil Output Cut Pact
  • 20 hours Iran Calls On OPEC To Sway Libya, Nigeria To Join Cut
  • 21 hours Chevron To Invest $4B In Permian Production
  • 23 hours U.S.-Backed Forces Retake Syrian Conoco Gas Plant From ISIS
  • 1 day Iraq Says Shell May Not Quit Majnoon Oilfield
  • 3 days Nigerian Oil Output Below 1.8 Million BPD Quota
  • 4 days Colorado Landfills Contain Radioactive Substances From Oil Sector
  • 4 days Phillips 66 Partners To Buy Phillips 66 Assets In $2.4B Deal
  • 4 days Japan Court Slams Tepco With Fukushima Damages Bill
  • 4 days Oil Spills From Pipeline After Syria Army Retakes Oil Field From ISIS
  • 4 days Total Joins Chevron In Gulf Of Mexico Development
  • 4 days Goldman Chief Urges Riyadh To Get Vision 2030 Going
  • 4 days OPEC Talks End Without Recommendation On Output Cut Extension
  • 4 days Jamaican Refinery Expansion Stalls Due To Venezuela’s Financial Woes
  • 4 days India In Talks to Acquire 20 Percent Of UAE Oilfield
  • 5 days The Real Cause Of Peak Gasoline Demand
  • 5 days Hundreds Of Vertical Oil Wells Damaged By Horizontal Fracking
  • 5 days Oil Exempt In Fresh Sanctions On North Korea
  • 5 days Sudan, South Sudan Sign Deal To Boost Oil Output
  • 5 days Peruvian Villagers Shut Down 50 Oil Wells In Protest
  • 5 days Bay Area Sues Big Oil For Billions
  • 5 days Lukoil Looks To Sell Italian Refinery As Crimea Sanctions Intensify
  • 5 days Kurdistan’s Biggest Source Of Oil Funds
  • 6 days Oil Prices On Track For Largest Q3 Gain Since 2004
  • 6 days Reliance Plans To Boost Capacity Of World’s Biggest Oil Refinery
  • 6 days Saudi Aramco May Unveil Financials In Early 2018
  • 6 days Has The EIA Been Overestimating Oil Production?
  • 6 days Taiwan Cuts Off Fossil Fuels To North Korea
  • 6 days Clash In Oil-Rich South Sudan Region Kills At Least 25
  • 6 days Lebanon Passes Oil Taxation Law Ahead Of First Licensing Auction
  • 7 days India’s Oil Majors To Lift Borrowing To Cover Dividends, Capex
  • 7 days Gulf Keystone Plans Further Oil Output Increase In Kurdistan
  • 7 days Venezuela’s Crisis Deepens As Hurricane Approaches
  • 7 days Tension Rises In Oil-Rich Kurdistan
  • 7 days Petrobras To Issue $2B New Bonds, Exchange Shorter-Term Debt
  • 7 days Kuwait Faces New Oil Leak Near Ras al-Zour
  • 8 days Sonatrach Aims To Reform Algiers Energy Laws
Are OPEC’s Hands Tied?

Are OPEC’s Hands Tied?

OPEC is able to take…

Cheap Oil Or A Weak Dollar: Pick One

Cheap Oil Or A Weak Dollar: Pick One

When the price of oil…

Libyan Prime Minister Hopes Arrest of Strike Leaders will End Oil Protests

Last month, claiming that the National Oil Company had been benefitting from corrupt sales, armed groups, the same that helped to overthrow the dictator colonel Muammar el-Qaddafi two years ago, have worked to restrict Libya’s oil industry.

In objection to the illicit dealings of the state-owned oil company, and in order to add power behind their demands to gain autonomy for the eastern regions of the country, the militias seized some of the country’s major oil export terminals and oil fields; trying to pressure the government to meet their demands.

The guards of the oil fields and facilities then took advantage and spread the protests west, making their own demands for higher wages from the government.

Related article: Egypt for Sale

Currently protests and strikes across the country have reduced Libya’s daily oil production to one-tenth its capacity, severely pressuring the economy, and affecting global oil supplies at a time when prices have already started to rise as a result of the problems in Syria, and other parts of the Middle East.

Oil is vital to the Libyan economy, accounting for 95% of the country’s export earnings, and 75% of the government’s total revenues, but the strikes are now costing an estimated $130 million a day in lost oil revenue.

On Wednesday, finally fed-up of the protests across his country, Prime Minister Ali Zeidan, issued arrest warrants for the strike leaders, hoping to bring an end to disruptions once and for all. “I won’t let anyone hold Libya and its resources hostage to these groups for long,” he said, although political analysts don’t believe that he will be able to enforce the arrests whilst most of the national military and police forces remain poorly trained and ineffective.

As protests grew in size, the local utilities had to reduce their levels of power generation, causing blackouts in much of the country.

Related article: How the US and Russia can Achieve Peace in Syria

To try and facilitate an easier end to the protests the Libyan parliament agreed to increase wages of all civil servants, including the oil industry security guards, by 20%, and has appointed a committee to move from village to village, to negotiate with local councils and militia who support the protests.

David L. Goldwyn, the State Department coordinator for international energy affairs during Obama’s first term in office, explained that “the challenge for Zeidan is that it will be difficult to muster the force that will be necessary to make these arrests when some of the militias he would rely on are allied with the strikers.”

Source: http://www.nytimes.com/2013/09/13/world/africa/in-libya-unrest-brings-oil-industry-to-standstill.html?_r=2&

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News