Subscribe free to our newsletters via your
. Energy News .




ENERGY TECH
Libya's oil sector faces long-term decline amid anarchy
by Staff Writers
Tripoli, Libya (UPI) Oct 3, 2013


Libya's interim government is struggling to crank up oil production again after weeks of shutdowns enforced by armed militias and protesting oil workers slashed output from 1.4 million barrels per day to below 200,000 bpd, virtually zero, in September.

But there's little prospect of any meaningful progress because two years after the fall of Col. Moammar Gadhafi Libya remains gripped by anarchy, maybe terminally fractured by geography and history into competing regional power centers.

"For the foreseeable future, Libya will continue to be plagued with domestic instability, and oil production and exports will continue to fluctuate," the U.S. global intelligence consultancy Stratfor warned.

The slump in production has coincided with major falls in Middle East output by sanctions-battered Iran, technical problems and security disruptions in Iraq, sabotage in Yemen, political upheaval in Sudan and the 30-month-old civil war in Syria.

The Libyan troubles erupted in July when striking workers, oil sector guards and militiamen driven by grievances including salary disputes, official corruption and political rivalries closed oil fields across the North African state.

They also shut down storage and export facilities, wrecking efforts to boost national production up to its pre-2011 civil war level of 1.6 million bpd.

There had been hopes in recent days that production was slowly climbing up again after reportedly hitting a low of only 150,000 bpd in September.

But those expectations appeared to have been dashed Sept. 30 when armed men halted the oil flow from the western Wafa oil field operated by Italy's Eni SpA to the Mellitah export terminal.

The field lies in a mountainous region predominantly inhabited by Libya's Berber minority known as Amazigh.

They fear they'll be marginalized as an ethnic group when the country's long-delayed constitutional drafting process finally gets under way -- if it ever does.

Wafa normally provides an average of 458 million cubic feet of gas a day, along with 23,000 barrels of gas liquids and 38,000 barrels of oil and condensates. The closure threatens at least four power stations.

The interim General National Congress, which took over in August 2012, has been unable to establish a national army because of the deep-rooted tribal, regional and political rivalries that have plagued the country since Gadhafi's 42-year rule ended in October 2011.

It's banking on nationwide municipal elections in 100 regions to help stabilize the political and security environment enough to restore oil and gas production which provide most of Libya's state revenues.

But the elections have been repeatedly delayed for months -- in part because of of voter apathy about a return to stability. That does not auger well for stabilization efforts.

"Just as Tripoli has been struggling with the limits of its own weakened authority, regional government are having similar difficulties maintaining control of their own militias and tribal groups, making a sustainable return to stability in Libyan politics or oil production unlikely for the foreseeable future," Stratfor observed.

The collapse of Gadhafi's quirky regime eliminated a strong, if brutal, central authority that glued the country together.

That left Libya prey to the traditional rivalries between the three traditionally semiautonomous regions, Tripolitania in the west, Cyrenaica in the east and southeast, and the largely desert Fezzan in the southwest.

The reality today, Stratfor noted, is that these powerful regional centers are "unwilling to submit to another central authority following their successful revolt against the Gadhafi regime."

Western governments, particularly those with energy interests in Libya, are pressing Tripoli to reassert its authority and restore some semblance of security.

Even though, "unlike regional oil-producing centers such as Benghazi, the central government has retained the ability to strike deals with foreign oil companies and to collect and distribute revenues through accounts controlled by the Oil Ministry in Tripoli," it still lacks the muscle to protect and ensure oil production and exports.

"The government has continued to rely on local groups, which in turn have been able to leverage Tripoli's dependence to their advantage," Stratfor said.

"Lacking strong enforcement capabilities and wanting to prevent an armed conflict that it would likely lose, Tripoli has been forced to adopt policies if appeasement."

The International Monetary fund has warned that with no oil exports to speak of, Libya will collapse financially if it doesn't start receiving oil revenues soon.

.


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
AEA's tactic: If you can't win, delay
Washington (UPI) Sep 30, 2013
While the Senate Energy and Natural Resources Committee considered and ultimately rejected Ron Binz's nomination for Federal Energy Regulatory Commission Chairman, committee members may have missed the latest chapter of gamesmanship being played by companies trying to stop the export of U.S. liquefied natural gas. In an attempt to cause further delay to the LNG export-license approval p ... read more


ENERGY TECH
IEA: Southeast Asia's energy demand to increase 80 percent

Nigeria signs $1.3 bn power plant deal with China

Myanmar's energy sector boosted by World Bank investment

ASEAN region has potential for 70 percent green energy

ENERGY TECH
Libya's oil sector faces long-term decline amid anarchy

Slow progress in Israel-Turkey talks threatens gas pipeline plan

US court backs BP in dispute over compensation for oil spill

Russia charges all 30 Greenpeace activists with piracy

ENERGY TECH
Installation of the first AREVA turbines at Trianel Windpark Borkum and Global Tech 1

Trump's suit to halt wind farm project to be heard in November

Ireland connects first community-owned wind farm to grid

Moventas significantly expands wind footprint

ENERGY TECH
Another 1MW of Community-Owned Solar Comes Online in Colorado

Solid UK performance signals strong future for Trina Solar

Global Solar Installation Growth Set to Hit Three-Year High in 2014

IKEA rolls out consumer solar panel systems in British stores

ENERGY TECH
Bangladesh breaks ground for first nuclear power plant

Four tonnes of radioactive water spilled in Fukushima

New leak at crippled Fukushima nuclear plant: TEPCO

Radioactivity found in fracking waste water in Pennsylvania

ENERGY TECH
UCLA engineers develop new metabolic pathway to more efficiently convert sugars into biofuels

KAIST announced a novel technology to produce gasoline by a metabolically engineered microorganism

Solving ethanol's corrosion problem may help speed the biofuel to market

First look at complete sorghum genome may usher in new uses for food and fuel

ENERGY TECH
Chinese VP stresses peaceful use of space

China's space station to open for foreign peers

Last Days for Tiangong

China civilian technology satellites put into use

ENERGY TECH
Climate change: Fast out of the gate, slow to the finish the gate

Climate Models Show Potential 21st Century Temperature and Precipitation Changes

Reconstruction for the eastern Mediterranean temps based on tree rings

Greater desertification control using sand trap simulations




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