Libyan Oil Production on the Rise

Libyan oil production, which was severely impacted by the country's conflict, has begun to recover rapidly. The International Energy Agency (IEA) reports that crude oil production in Libya increased from around 75,000 barrels per day (bpd) in September to approximately 500,000 bpd in November. Energy companies are now eyeing the opportunity to expand operations in Libya, with executives from ConocoPhillips and other major energy companies highlighting the potential for growth.

Key Takeaways:

• Libyan oil production is expected to reach 800,000 bpd by the first quarter of 2012, according to the International Energy Agency.
• By the end of 2012, Libyan oil production is anticipated to reach 1.17 million bpd.
• Energy companies, including ConocoPhillips, BP, and Royal Dutch Shell, are planning to resume operations in Libya, with BP aiming to honor its previous contract.
• The Libyan government's new administration has expressed a commitment to honoring existing energy contracts, paving the way for international companies to re-engage.
• Libyan oil production before the conflict stood at around 1.6 million barrels per day, with 1.3 million barrels being exported.
• European governments had mentioned a delay in imposing an embargo on Iranian oil, pending the recovery of Libyan oil production to pre-war levels.

Statistics:

• Libyan crude oil production rose from 75,000 bpd in September to 500,000 bpd in November.
• Expected Libyan oil production by the first quarter of 2012: 800,000 bpd.
• Expected Libyan oil production by the end of 2012: 1.17 million bpd.
• Pre-war Libyan oil production: approximately 1.6 million barrels per day, with 1.3 million barrels being exported.

Sources:

• "ConocoPhillips sees waning restrictions in Libya, Bloomberg, [no specific date]
• IEA Oil Market Report, November 2011
• UPI, Dec. 7 (no specific date)