Oil Crisis in Libya

Libya's oil production and exports are greatly affected by the ongoing crisis in Libya. The country is a member of the OPEC member of the Organization of Petroleum Exporting Countries. Libya is the 17th largest oil producer in the world, the third largest oil producer in Africa, and the largest oil reserves in the continent. (Hauser, 2011) The crisis has affected other countries and their trade (oil and gas prices, monetary value, etc.) as Libya occupies a very important position in the oil industry.

Oil companies are very interested in developing Libyan oil resources. Because it is in the Mediterranean. Their news from Iran came from the political crisis between 1951 and 1954. Due to the Suez crisis from 1956 to 1957, the Suez Canal was closed. All the oil from eastern Suez must be transported to the southern tip of Africa at a significant additional charge. In addition, Libya is considered to have a stable parent-western government. By 1957, there were about 12 companies in Libya with about 60 franchises. The company that operates there includes seven major companies and France's CompagnieFrançaisedesPétroles. Oasis is also a consortium of three companies, the international oil development company Amerada Hess, Conoco, Marathon. There is also an oil company of Bunker Hunt which is the son of American oil owner H. L. Hunt.

Libya is a member of the Organization of Petroleum Exporting Countries (OPEC) and has proved the largest oil reserves in Africa. Since 1956, Libya has attracted hydrocarbon exploration when the first wild oil well drilled in the land of the Sorte Basin. Libya made some concessions to Esso, Mobil, and the Gulf of Texas, which led to the discovery of oil in 1959. By managing petroleum resources, the government controls the Libyan economy, petroleum resources account for approximately 95% of export revenues and 75% of government revenues, accounting for over 50% of GDP. The National Oil Company was founded in 1970. It dominates the oil industry in Libya and has a smaller subsidiary which accounts for about half of the country's oil production. Figure 1 Map of Libya shows oil refining controlled by natural gas pipeline, oil pipeline, oil field, liquefied gas planet oil terminal (oil export port), and Libyan National Oil Company.