Libya lurches towards energy crisis as armed groups throttle oil supplies

[Jesus Malverde]

Lawless Libya, these days seen as a major haven for al-Qaida, is facing its greatest crisis since Moammar Gadhafi was toppled and killed in October 2011, as armed groups besiege oil fields and terminals, cutting production to a trickle and threatening economic meltdown.

Output has fallen from 1.4 million barrels per day in January to just 250,000 bpd, the government says, as militias, some of them hired by the government to protect energy installations, close down key infrastructure.

Independent analysts believe the production figure is even smaller, some say as low as 60,000 bpd, because of strikes by energy workers, security guards and militias that began in late July over pay and allegations of corruption.

These have been heightened by power struggles, regional demands for greater control of oil revenue, deep-rooted tribal issues that have intensified dangerously since Gadhafi's demise.

Read more at http://www.stockhouse.com/news/natural-resources/2013/09/05/libya-lurches-towards-energy-crisis-as-armed-group

[Jesus Malverde]

1. Libyan oil production collapsing

The Libyan government said strikes at its oil fields and export terminals were pushing production levels back toward lows witnessed during the civil war.

The International Energy Agency called on its member states to release oil from strategic reserves when Libyan oil production collapsed during the height of the fighting in 2011.

Since the war, Libya has struggled to return to its nominal production capacity of 1.6 million barrels per day. An energy committee in the General National Congress said oil production was grinding to a halt because of strikes, the Libya Herald reports.

Output has fallen from 1.4 million barrels per day in January to around 250,000 barrels per day, the government said.



Read more: http://www.upi.com/Business_News/Energy-Resources/2013/09/05/Libyan-oil-production-collapsing/UPI-73811378377624/