Libya's troubles created the country's worst energy crisis in decades and supply disruptions to world markets could push oil above $130 a barrel in the next month if troubles persist, Shokri Ghanem, chairman of Libya's National Oil Corporation, told Reuters Wednesday.
He did not specify whether he was referring to Brent or US light sweet crude.
Ghanem said crude oil output had dropped to 700,000-750,000 barrels per day after the flight of most of the foreign workers who make up about 10 percent of the Libyan energy industry's labor forces, including some in key positions. Before the crisis Libya pumped 1.6 million bpd.
Asked if Libya would resort to using oil as leverage, or a political weapon if the United States and other Western countries stepped up pressure on Libya over its handling of the revolt, Ghanem said:
"I hope we are not reaching any stage where we are talking about using this (oil) as a political force," he said. "We hope that all things will be solved before we go into any complications of any matters."
Oil markets will be watching closely to see if the departure of oil workers fearful of violence in Libya will further cut output in the world's 12th largest exporter.
Meanwhile, Muammar Gaddafi, facing calls to step down after a bloody crackdown threatening his 41-year rule, blamed al Qaeda cells for creating turmoil and said there was a conspiracy to control Libya and its oil.
Gaddafi said that oil fields in the OPEC producer were safe but foreign firms were concerned because of gangsters.
"The oil fields are secure ... but the companies are afraid," he said in a speech, adding that they feared "armed gangsters".
10 comments:
I hope that this will not be used a leverage against us. Paying for gas is already hard as it is. And this whole Gaddafi buissness is getting to ridiculous.
As I filled up my car with gas today, 3.35 a gallon, I seriously feel the impact of this story!! I truly hope that oil won't become a political force. That would not be good for America. Hopefully things will calm down in the Middle East. I also find it a tad funny that the oil companies are afraid of "gangsters". These "gangsters" must be pretty terrifying to scare so many people and cause so any issues. I would bet the issues are not just gangsters.
fail. 50$ to fill up the Shelby was not the most exciting thing I've done in this new year. revolution, renaissance, uprising, whatever you want to call it. lets get it over with- sounds like an armageddon in Lybia..
It really sucks that WE have to pay for Libya's freedom at the gas pump, but every country has the right to live freely. Gaddafi's rule will hopefully come to an end soon, before he is able to kill many more innocent civilians. In the meantime he can blame anyone he wants to for the revolution; the rest of the world knows that it is his tyrannical rule that has caused this.
Something seriously needs to be done, drilling over there paying 120 dollars a barrel is just downright ridiculous. If we just drilled on our land, perhaps in Alaska where it's estimated to have just as much(if not more) oil as Saudi Arabia, we'd be creating jobs, helping the economy, and possibly reducing our debt as opposed to sending both trillions and our jobs over there in the middle east. God forbid we become energy independent.
Hopefully the trouble in Libya will decline before oil prices rise to $130 a barrel. We don't need oil prices to ruin our economy's recovery. I don't enjoy the rising prices of gas, seeing as I drive across town at least twice a day.
the gas is rising quickly, this is making other products also to elevate the prices. All of this cause by the political problems in Libya. The dictator Gaddafi doesn't want to step down and leave the power, so the oil production has been reduced tremendously. The government of Libya is blaming the rebels for this reduction. It's possible that they are using this rise as a political weapon to hurt the U.S and other countries.
This is going to be brutal for our economy and for every American that drives a ford f-350 mega ton. Sure these events will seem painful at first but maybe they will also inspire even further technology towards cleaner renewable energy in vehicles that everyone can afford. With gas prices skyrocketing we can only hope America rises to the occasion.
P.S. The last two paragraphs said the exact same thing, this made me chuckle
The fact that we rely so much on oil is sad... it's such a crucial part of our economy that the slightest change leads to a huge chain reaction. As for rising prices, i personally am very afraid of this. Oil prices rising so high would be ridiculous! But i'm also very curious to see what would happen if the prices skyrocket... how will everyone really react when faced with such a problem?
Wow. These days it's hard to differentiate between political cover ups and bold-faced lies ( if there's even a difference) Even if America, combined with other nations, puts the pressure down on their government, it only shows how weak and needful we are of their resources. On the flipside, there's always more behind the scenes going on than the common citizen knows of. Maybe we can strike some sort of exclusive oil deal with them?
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