• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes The Inconvenient Truth Of Electric Cars
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 3 hours Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 5 hours Climate change & Wildfires: More Wildfires To The Western U.S., Will Affect Tens Of Millions Of People
  • 2 hours Wonders of Shale - Gas, bringing investments and jobs to the US
  • 10 mins Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 8 hours Hard To Believe: UAE Will Work To Defuse Middle East Tension
  • 3 hours The Plastics Problem
  • 9 mins The Strait of Hormuz is the world’s most important oil transit chokepoint
  • 4 hours Looks like Trump is putting together a "Real" Coalition to protect Persian shipping lanes. Makes perfect sense. NO Fake "Coalition's of the Willing" UPDATE REUTERS Pompeo "Sentinel Program"
  • 6 hours Cherry Picking Climate Data
  • 10 hours Oil Demand Needs to Halve: Equinor
  • 10 hours Green vs. Coal: Bavaria Seeks Fast-Track German Coal Exit in Snub to Merkel Plan
  • 2 hours Is $60/Bbl WTI still considered a break even for Shale Oil
  • 4 hours Coal Boom in Asia is Real and a Long Trend
Alt Text

OPEC’s Struggle To Avoid $40 Oil

Saudi Arabia cannot afford to…

Alt Text

The Oil Price Risk Analysts Are Ignoring

While geopolitical tensions in the…

Alt Text

Oil Holds Steady Amid Small Rig Count Decline

Oil prices held steady on…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Oil Prices Fall As Libya’s Biggest Oil Field Comes Back Online

More drama in embattled oil producer Libya this week. With reports suggesting the country’s largest oil field has once again been endangered by local fighting. 

Reuters reported early Monday that production at the Sharara field was grinding to a halt. With local sources saying that a key control room at the facility had been shut down.

The reason for the closure wasn’t immediately clear. But Reuters did cite persons familiar with the situation as saying that an armed group had taken action against the facility — potentially resulting in the shutdown. 

At the time, sources said that Sharara’s output was likely to decline to zero due to the problems at the control room. But reports emerged later in the day saying the problem had been fixed, and that production was now returning to normal. 

Those reports confirmed that an armed group had been involved in action against the infrastructure here. With Libya’s National Oil Company saying, “The armed protesters were evacuated from the control room, pumping returned to its natural level and production is being restored.”

All of which is potentially critical news for the global crude market. With Sharara being the biggest part of Libya’s recently-surging oil production — putting out 270,000 barrels per day of Libya’s total 1 million b/d output. Related: Barclays: Oil Prices To Drop This Quarter

It looks as if problems here have been averted for the time being. But these events show things are still tenuous in Libya’s oil sector — evidenced by the fact an armed group was able to take over one of the country’s key installations, even briefly. 

If ongoing problems do present here, it could put a significant dent in crude supplies — giving support to the oil price. Watch for reports on any new issues over the coming weeks and months. 

Here’s to a smooth return.

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




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