• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 4 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 6 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 5 hours Will Uncle Sam Step Up and Cut Production
  • 4 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 4 hours Continental Resource's Hamm wants shale to cut production. . . He can't compete with peers.
  • 8 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 1 day US Petroleum Demand Strongest Since 2007
  • 10 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 1 day Movie Script: Epstein Guards Suspected Of Falsifying Logs
  • 18 hours Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 17 hours Why Oil is Falling (including conspiracy theories and other fun stuff)
  • 23 hours Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
The Biggest Hurdle In The Race To 100% Renewable Energy

The Biggest Hurdle In The Race To 100% Renewable Energy

Though tremendous progress has been…

Libya Could Lose Oil Production if Fighting Continues

Sanalla Libya

Libya’s oil production is under threat from renewed fighting between warring armed groups and the situation could become as bad as it was during the 2011 civil war, the National Oil Corporation’s chairman, Mustafa Sanalla, told the Financial Times in an interview.

“I am afraid the situation could be much worse than 2011 because of the size of forces now involved,” Sanalla told the FT, adding “Unless the problem is solved very quickly, I am afraid this will affect our operations, and soon we will not be able to produce oil or gas.” 

The flare-up of inter-group violence took many by surprise as it came after comments from the commander of the Libyan National Army, General Khalifa Haftar that soon Libya will have a single government. The LNA is affiliated with the eastern government that the UN has not recognized but some took the comments to mean negotiations are on the table.

Instead of negotiations, the LNA advanced on Tripoli. Since then, fighting has been intensifying with no end of the violence in sight.

Sanalla called on the international community to step in and put an end to the violence but options are limited amid the deep division between warring factions, all of which are seeking control over the country’s oil.

“The oil production must remain uninterrupted. If we lost 1.2m barrels a day of production at this time you cannot imagine what the global price would do,” Sanalla said in the interview. Libya depends on its oil and gas exports for more than 95 percent of its exports and the consequences of the conflict spreading to oil and gas fields will in all likelihood be disastrous for an economy still reeling from the fallout of a bloody civil war.

The EU, which recognizes the Government of National Accord based in Tripoli, yesterday issued an official statement urging the sides in the conflict to stop the violence. Their heeding the call remains doubtful.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play