Register

Peak Oil is You


Donate Bitcoins ;-) or Paypal :-)


Page added on December 29, 2014

Bookmark and Share

Libyan oil output shrinks more as oil tanks blaze

Production

* Hariga fields still producing -oil official

* Fire at Es Sider oil storage site after fighting

* Es Sider, Ras Lanuf ports closed

* Brega port open but mostly supplying refinery

 

Libya’s oil output has shrunk further after blazing oil tanks at a major terminal helped push world oil prices higher and put a strain on the country’s dollar currency reserves.

Libya is surviving on a mere 128,000 barrels per day from fields connected to the eastern port of Hariga, an oil official said on Monday, while fighting halted the major ports Es Sider and Ras Lanuf.

Total oil output, adding offshore fields and Brega output, is about 350,000 bpd – a fraction of the 1.6 million bpd it produced before the 2011 civil war. Some oil is keeping two refineries going, and the official was unable to say how much, if any, was available for export.

Oil tanks at Es Sider have been on fire for days after a rocket hit one of them, destroying more than two days of Libyan production, officials said on Sunday. Libya has appealed to Italy, Germany and the United States to send firefighters.

A spokesperson for ConocoPhillips, which along with Marathon Oil and Hess Corp owns the Waha Oil Co that operates the Es Sider tanks, said they had yet to determine the extent of the damage to the oil storage facilities.

Libya’s recognized government has contracted an unnamed U.S. firefighter firm to help extinguish the fires for $6 million, it said. Work is due to start within five days.

‘GROWING FINANCIAL CRISIS’

The central bank warned that Libya faced a “growing financial crisis…due to the sharp fall in oil production and prices, the widening fiscal deficit, the continued depletion of the country’s foreign reserves,” according to a statement.

Libya’s two largest ports, Es Sider and Ras Lanuf, have stopped operating since a force loyal to a rival government in Tripoli tried seizing them from forces allied to the recognised Prime Minister Abdullah al-Thinni.

Thinni has been forced to work out of the eastern end of the country since a rival group called Libya Dawn seized Tripoli in August, setting up its own government and parliament unrecognized by world powers.

A spokesman of an oil guard force allied to Thinni said there would be more air strikes on the city of Misrata unless the rival force pulled out of the vicinity of Es Sider. War planes had struck the western city linked to the rival government on Sunday.

“We have given them a 72-hour deadline to withdraw which started yesterday,” the spokesman said.

The western ports of Zawiya and Mellitah have also halted oil exports as the conflict has shut down the connecting fields of El Sharara and El Feel.

 

Reuters



7 Comments on "Libyan oil output shrinks more as oil tanks blaze"

  1. Plantagenet on Mon, 29th Dec 2014 7:35 pm 

    This will help reduce oil supply but probably not enough to end the oil glut.

  2. Bob Owens on Tue, 30th Dec 2014 4:38 pm 

    With the tank farm burning, oil fields shut down, civil war going on for the oil scraps, we can write off any more exports from Libya. A few more years of the oil fields being idle will so deteriorate them that they will never be able to produce as they have in the past. The world will have to do without their oil in the future. One by one, the ME countries are sinking into anarchy and their oil production is going offline. The world is adjusting by sinking into recession and reducing demand. Without regional stability you can’t produce oil.

  3. Go Speed Racer on Wed, 31st Dec 2014 5:54 am 

    It will be like Road Warriors. Guys on Dune Buggies chasing each other for a gallon of gas. And throw bee hives at each other while driving.

  4. Davy on Wed, 31st Dec 2014 7:12 am 

    Fellow Doomers, this is Davy reporting from the land of Corn. I am giving you an update on my explorations into cornucopia. To do this properly I had to submit to corn intoxication fully without doom in my heart. I dialed down my doom shield and powered up the corn magnet. I indulged in the debauchery and lust of corn porn. I was am daily a carbon whore. I turned against all those higher values of relative sacrifice and stoicism I feverishly live by at my doomsted up north. Yet, remember sometimes you have to live fully with the corns to understand doom better. So in this sense I was on a mission of exploration in the name of doom by rejecting doom.

    I am spending 2 weeks on the southern out Islands of Bahamas that encompasses Cat Island, Long Island, and San Salvador. Yes, I am where the rape and pillage started of the virgin lands of the new world with Columbus and his motley crew. This is the undeveloped part of the Bahamas. There are still significant untouched beaches and waters. The fishing and diving is great. There is little in the way of restaurants and shopping. The electricity can be spotty as well as the internet

    This life is one of whites with island homes, boats, and planes. Days are mellow and relaxed with plenty of good food and supplies brought in. The day consist of fishing, diving, and beach walking. I am not into the fishing which requires million dollar boats. I prefer the diving and beach walking. The weather is an ideal 74-82 with mellow winds. There is the occasional shower.

    I spent significant time diving. This time of year we hunt lobster which they call “bug” here. I do not hunt for karma reasons but I carry the game bag and will spot them for the divers. I enjoy the diving and beach walking because of the beauty and the exercise. I am fit so these activities supplement my normal workout.

    In this corn land of fun and frolic there is an unreality of loss of time and space. You succumb to a fog of disconnect from the harshness of regular life. There is no need for work all is provided. The island is lightly populated with wonderful natives who live on little but have a high degree of happiness. They generally subsist on small gardens and fish. They work for the whites, few resorts, and the occasional government contract. Many don’t work a regular job but manage. Many of the men are alcoholics or heavy pot smokers. The women are strongly religious and the anchor of their society.

    The whites here are for the most part 1%ers. Many are heavy drinkers and have wild parties. Other are good family people that spend time here during the harsh winter up north. There is no doom to be found here at least with the market elevated like it has been for 5 years. There life consists of fishing, parties, and quiet time in their wonderful homes.

    I am here for a few more day. As we ring in the new year here I have been asking the corns what they think of what lies ahead and the constant refrain is markets good, gas prices low, and growth not great but steady. There seems to be a lack of worry and concern. It isn’t hard to understand why because every day is one big play time.

    What these corns don’t understand is how fragile and exposed these islands are to oil disruption and food shortages. If the oil powered electricity where cut, boat fuel gone, and food boats idle what would life be? What would these corns do without their normal appendages of cornucopia? There would not be enough food and fuel for their lifestyles. It is easy to get home with all the private planes. The fuel tanks will hold out for a month or two. Someday the natives will have fine houses to move into because this land epitomizes corn extension into unsustainability and low resilience.

  5. farmlad on Wed, 31st Dec 2014 7:35 am 

    Thanks for letting us know, what your up too. I was getting a bit worried, even though this is the holiday season.

  6. Davy on Wed, 31st Dec 2014 8:17 am 

    Well, Farm, I am at my occasional internet hot spot and I am trying to detox from the heavy internet connectivity I have at the doomsted. I am also embarrassed on being a 1st class hypocrite. Anyway I can only take 2 weeks of this corn porn because it causes indigestion and dizziness. I will check in with you guys in a few days when I get home. For all my doomer pals “give em hell boys!” for my corn buddies “this will be your year of judgment friends but in the meantime “LIVE LARGE”. NOo, I am sure you are as goofy as ever. NOo econ 101 went out with the hoola hoop. Get a life dude!

    ciao

  7. Northwest Resident on Wed, 31st Dec 2014 9:25 am 

    Hey Davy — Thanks for checking in. I figured you were in the Bahamas, living it up. Glad to see my suspicions are true, versus a cow stepped on you or your tractor tumbled down the hillside with you on/under it. And thanks for the “inside” scoop from one-percenter land. Happy New Year, and may all your doomer dreads NOT come true!

Leave a Reply

Your email address will not be published. Required fields are marked *