Subscribe free to our newsletters via your
. Energy News .




ENERGY TECH
Libya oil deadlock causes jitters in global energy market
by Staff Writers
Tripoli, Libya (UPI) Dec 18, 2013


Libya's deadlocked oil crisis, with rebel warlords refusing to reopen blockaded oil terminals along the Mediterranean coast, is causing jitters on international energy markets as oil exports are reduced to a trickle.

The beleaguered government of Prime Minister Ali Zeidan said last week that the export terminals in the eastern cities of Ras Lanuf, Es Sider and Zueitina, which account for 60 percent of Libya's oil exports, would reopen Sunday.

But rebel chieftain Ibrahim Jedran, who once commanded the 30,000-strong Petroleum Facilities Guard assigned to protect the very facilities he has shut down for months, refused to allow them to resume operations until the Tripoli government recognizes eastern Libya as an autonomous region.

Eastern Libya, known as Cyrenaica, holds most of the North African country's oil reserves of 76.4 billion barrels, the largest in Africa and the fifth largest in the world.

"International oil markets are apprehensive about the negotiations in Libya," the U.S. global security consultancy Stratfor observed.

"Tripoli still faces significant challenges in guaranteeing and protecting its energy industry."

Jedran, it stressed, "has proved to be an intractable adversary with a desire for embarrassing Prime Minister Zeidan and his government in Tripoli," it said.

"His demands for greater regional autonomy and increased profit-sharing ... are popular in the east, but they are anathema to residents of Tripoli and other parts of the country."

"Concessions by Tripoli will not come without a price, even as the legislator tries to negotiate an end to ongoing threats against oil production in western Libya's restive Amazigh and southern tribal regions," Stratfor noted.

Oil production has slumped from around 1.4 million barrels per day following the country's 2011 civil war that toppled longtime dictator Moammar Gadhafi, to around 200,000 bpd, half of which is needed to fuel the 120,000 bpd Zawiya power station.

Analysts estimate that some 600,000 bpd in Libyan crude remains off the market.

Oil Minister Abdelbari al-Arusi said Dec. 7 the country had lost more than $7 billion because of the shutdowns that began July 28, and now faces the problem of other African producers, primarily Algeria and Nigeria, moving into Libya's traditional markets.

Zeidan, who's also plagued in-fighting within his administration and by unrest on other regions, has sought to pressure Jedran through tribal structures to lift the blockade.

He had negotiated with elders of the Magharba tribe of eastern Libya, who announced Dec. 10 they would withdraw their support for Jedran and his militia if the oil blockade continued.

The prime minister had expected that would force Jedran to back down. But he refused to budge. The Magharba are often divided internally, and he may have been able to outmaneuver Zeidan, whose influence is seen to be waning the longer the crisis lasts.

The government is having to handle dozens of restive and heavily armed militias -- including some on the western region known as Tripolitania and the Fezzan in the southern Sahara, another oil production center -- few of which it's able to control.

Zeidan's been reluctant to use his security forces against Jedran and his heavily armed followers because if Tripoli intervenes in what are currently non-violent protests in a bid to restore operations at the export terminals he risks triggering violent reprisals which could damage or destroy infrastructure that would worsen the oil crisis.

"It could also incite a broader domestic conflict between forces opposed to the government," Stratfor said.

Jedran has wide support among eastern tribes, particularly their young men, and he champions their demands for more equitable sharing of oil revenues, which Gadhafi had showered on his allies in other regions.

Jedran last week laid down three conditions for reopening the terminals -- investigations into alleged illegal crude sales by corrupt officials, the creation of an independent committee to monitor crude exports, and more development projects for Cyrenaica.

Tribal leaders said Tripoli agreed to probe the corruption allegations and set up the committee, but refused to accept changes that would legitimize a federal system with autonomous regions.

Jedran has already declared the east an autonomous zone and set up a "national" oil company to run the region's oilfields, terminals and other energy infrastructure.

"Libya's position on the world oil market is slipping," Oxford Analytica noted, stressing "its status as one of the world's leading energy producers is declining."

.


Related Links
Powering The World in the 21st Century at Energy-Daily.com






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








ENERGY TECH
BP engineer guilty of obstructing oil spill investigation
Washington (AFP) Dec 18, 2013
A drilling engineer for British oil giant BP was found guilty Wednesday of destroying text messages in his smartphone, obstructing the investigation into the 2010 Gulf of Mexico oil spill. "Today a jury in New Orleans found that Kurt Mix purposefully obstructed the efforts of law enforcement during the investigation of the largest environmental disaster in US history," acting Assistant Attor ... read more


ENERGY TECH
EU probes Germany energy price breaks for business

Ukraine's Two New Energy Deals

Keeping the lights on

Global energy demand to increase 35 percent: ExxonMobil

ENERGY TECH
Libya oil deadlock causes jitters in global energy market

BP engineer guilty of obstructing oil spill investigation

British PM urges EU to cut shale gas red tape

China natural gas represents 'golden opportunities'

ENERGY TECH
Austria's wind industry laments new zoning restrictions

Wind energy: TUV Rheinland certifies PowerWind wind turbines

Renewable Energy Infrastructure Fund acquires 16 MW wind power asset from O2

Morgan Advanced Materials Delivers Superior Insulation Solution To Wind Farm

ENERGY TECH
DuPont Solar Materials Meet Sharp Corporation's Stringent Quality Standards

Microgrid Solar and Doe Run To Provide Solar Upgrades at Herculaneum High

Hanwha SolarOne Brings Light to Chinese Children in Need

Australia to reduce renewable energy target?

ENERGY TECH
Brussels opens probe into UK state aid for new nuclear plant

TEPCO to decommission surviving Fukushima reactors

Ratepayers Could Save $1.7 Billion If Aging Nuclear Plant At Hanford, Washington Is Closed

US Risks Losing Critical Clean Electricity if Nuclear Power Plants Keep Closing at Steady Pace

ENERGY TECH
Seaweed Energy Solutions (SES) acquires wild seaweed operation in Norway

Algae to crude oil: Million-year natural process takes minutes in the lab

Biorefinery could put South Australian forest industry back on growth track

Ground broken on $6 million Hungarian farm biogas plant

ENERGY TECH
Deep space monitoring station abroad imperative

Chinese sci-fi writers laud moon landing

China deploys 'Jade Rabbit' rover on moon

The Dragon Has Landed

ENERGY TECH
World experiences hottest November in 134 years: US

Geoengineering approaches to reduce climate change unlikely to succeed

New long-lived greenhouse gas discovered by University of Toronto chemistry team

French carbon crook on run after bracelet fails




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement