- Political and security issues may stand in the way of Europe’s desire to make the most of oil and gas from Libya and this may push it to find a rapid solution to the crisis in Libya.
Russia –Ukraine war has disrupted EU’s gas and petrol supplies from Russia. The European Union’s spokesperson for the Middle East and North Africa Luis Miguel Bueno has indicated that Europe in its efforts to diversify its sources of gas and energy is going to officially rely on Libya for supplies. Talks are already going on between Libya and Italy in this regard, and it is reported that several European countries will move to invest in Libyan oil.
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The Libyan economic and political experts hope that this renewed interest in Libyan oil by Europe will persuade Europe to speed up resolving the country’s political crisis in order to secure production and export operations. Only a political solution can guarantee the security of oil and gas export. Earlier there have been instances when instability led to militias and gangs taking control over oil fields, disrupting production.
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The war-torn Libya has been mired in instability since 2011 after ousting its long-time leader Gaddafi. The root of the crisis is the conflict between the previous government headed by Abdel Hamid al-Dabaiba and the current one led by Fathi Bashagha. Militia activity controls several facilities in Western Libya. The standoff between two rival governments has threatened to plunge the country again into political chaos.
Libya has the ninth largest known oil reserves in the world and the biggest oil reserves in Africa. Added to the huge reserves of gas, it has a strategic location due to its proximity to the European market. Political and security issues may stand in the way of Europe’s desire to make the most of oil and gas from Libya and this may push it to find a rapid solution to the crisis in Libya. This could lead to improvement in the maintenance operations for refineries and exploration of new fields in Libya. A World Bank report also has projected improvement in the economic growth of Libya if gas exports to Europe increase.
