• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 17 mins Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 4 hours Shale profitability
  • 55 mins Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 8 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 5 mins Hong Kong protesters appeal to Trump for support.
  • 2 hours Europe: The Cracks Are Beginning To Show
  • 11 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 16 hours Let's shut down dissent like The Conversation in Australia
  • 10 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 16 hours A little something for all you Offshore swabbies
  • 18 hours New designs will reduce transport fuels consumption
  • 4 hours LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 20 hours Democrats and Gun Views
  • 2 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 7 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
Where Is The World's Safest Source Of Oil?

Where Is The World's Safest Source Of Oil?

Alberta Premier Jason Kenney claimed…

State Dept Calls On Libya To Resolve Sharara Problem

Sharara field

The U.S. State Department has issued a statement urging the Libyan authorities and the militants who put a blockade on the country’s biggest oil field to resolve their differences so production could resume.

The blockade earlier this week forced the National Oil Corporation to declare force majeure on the field, which produces around 315,000 bpd. In its statement, NOC said that production from the field will resume when “alternative security arrangements are put in place.” This force majeure follows another one from last week that covered exports from the blocked field that contributes almost a third of Libya’s national total.

“The United States continues to monitor the situation at the Sharara oil field and echoes the UN Support Mission for Libya’s call for the immediate and unconditional withdrawal of armed elements in the area, which is crucial to allow oil production for the benefit of all Libyans to resume,” the State Department statement read.

The Sharara field has been shut down for over a week now, after a group of local tribesmen and militants from the Petroleum Facilities Guard took control of it and demanded what NOC called a ransom for lifting the blockade. The state oil company warned against paying, noting this would set a dangerous precedent. In fact, the company’s chairman, Mustafa Sanalla went as far as to say NOC will not restart production at Sharara if the government pays the PFG.

This is not the first and it probably won’t be the last production outage at Sharara, which contributes a significant portion of Libya’s total crude oil production. However, this is the first time the effect of this outage on international oil prices has failed to materialize.

Usually, any news of a production outage in Libya or anotSaudi Oil Minister: Crude Stocks Should Drop Very Soonher large OPEC producer would lift prices immediately but not this time. This time, prices have continued downwards, pressured by the growth in U.S. production and heavier pessimism about global economic growth next year.

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