• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 10 hours The United States produced more crude oil than any nation, at any time.
  • 6 days e-truck insanity
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 4 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 6 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 6 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 9 days Bankruptcy in the Industry
Morgan Stanley Hikes Its Summer Oil Price Forecast to $94

Morgan Stanley Hikes Its Summer Oil Price Forecast to $94

Geopolitical tensions and tighter supply…

OPEC Expects Solid Global Oil Demand This Summer

OPEC Expects Solid Global Oil Demand This Summer

OPEC expects strong oil in…

The Energy Sector Is A No-Brainer, but There’s More to Come

The Energy Sector Is A No-Brainer, but There’s More to Come

The most important catalyst working…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Oil Markets On Edge As Libya Brings Back 250,000 Bpd

Oil Barrels

Crude oil production at the Sharara field in western Libya – the country’s biggest – has resumed, an anonymous source told Reuters, and the force majeure that the National Oil Corporation had placed on the field could be lifted today.

Last week, unnamed armed factions had blocked production at the Sharara and Wafa fields in western Libya, cutting the country’s total output by 252,000 bpd. Sharara alone produced 220,000 bpd before the shutdown, making up a huge chunk of Libya’s overall 700,000-bpd production. It started pumping oil after a two-year pause last December.

When Sharara was restarted in December 2016, NOC said that it planned to increase output from it to the 330,000 bpd it pumped before the civil war, aiming for a national total of 900,000 bpd in the next few months and 1.1 million bpd at the end of 2017.

The anonymous source told Reuters that the latest shutdown of the field was due to armed militia who blocked the pipeline that fed crude from Sharara to the Zawiya export terminal. After intervention from NOC’s chairman Mustafa Sanalla, the militia men agreed to release the pipeline, so the oil flow could be resumed.

The pipeline that caused the latest force majeure used to be under the control of the Petroleum Facilities Guard, which held it, like the four oil terminals in the Oil Crescent, as bargaining chips with the authorities. The PFG relinquished control of the pipeline last December, three months after it left the four oil terminals, surrendering control over them to the Libyan National Army.

Last month saw fresh clashes between the LNA and another group, the Benghazi Defense Brigades, which temporarily froze operations at two of the ports, Es Sider and Ras Lanuf, shutting down several fields that fed crude into the terminals. Although these have since reopened, the political situation in Libya remains highly unstable, and future disruptions to oil supply are very likely. Related: Russia Reaches 2/3 Of Oil Output Cut Target

Before the 2011 war, Libya pumped 1.6 million barrels of crude daily.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News