How soon can Libya get its oil to flow?
An undated picture, taken before the fall of Moammar Gadhafi's regime, shows a general view of an oil and gas field in Tripoli.
October 26th, 2011
08:57 PM ET

How soon can Libya get its oil to flow?

With former Libyan leader Moammar Gadhafi ousted and dead, Libya’s interim government seems confident the country can reach pre-war oil production levels soon. But not everyone is so optimistic.

Before the February uprising, Libya put out about 1.6 million barrels of oil each day. That’s 2% of the world’s daily oil production.

The oil stopped flowing during the civil war as foreign companies left without properly shutting down the oil infrastructure. It is estimated Libya is now producing about 350,000 barrels of oil per day, but Libya’s new leaders are anxious to get more oil flowing.

Some oil companies that operated wells and refineries in Libya before the war “expressed some skepticism regarding a restoration of production to full pre-war levels within the next six months,” according to Fadel Gheit, managing director of oil and gas research at the Oppenheimer & Co. investment bank and firm.

“Obviously, the whole country is in shambles … civil war, total anarchy. Nobody is in control,” Gheit said. “So it’s not, obviously, a situation that will encourage oil companies to hurry back to Libya anytime soon.”

Gheit said because European oil companies left Libya so quickly during the uprising, they didn’t place the drills and refineries in a state that would make them easy to start up again. In some cases, wells will have to be re-drilled.

The new leaders of Libya will have to invest in the dilapidated oil infrastructure to maximize production and increase the nation’s revenue. But their limited funds are also needed to rebuild the country in the wake of intense fighting. If they spend too much on one, they may not be able to get the other done.

Click the audio player to hear the rest of the story from CNN Radio's Steve Kastenbaum:

You can also listen to the CNN Radio Reports podcast on itunes or subscribe to the podcast here.

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Filed under: Libya
soundoff (99 Responses)
  1. - Rent this space -

    I'm tired of being Bimbo, and I can't think of a good new name. If $19.99 per post is to steep, make me an offer.

    October 26, 2011 at 9:54 pm | Report abuse |
  2. banasy©

    Dragonex, if I've offended you, I'm sorry.
    It was unitentional.

    I *thought* that was you!
    I want it.
    The check's in the mail; I'm old-fashioned that way.

    October 26, 2011 at 9:58 pm | Report abuse |
  3. peacan

    @ Rent this space ... are you crazy? there's a little thing called a recession going on here! LOL Try .99 cents per post

    October 26, 2011 at 10:03 pm | Report abuse |
    • ConTroll

      No, that would be your looney boyfriend who's nutz....

      October 26, 2011 at 11:29 pm | Report abuse |
  4. dragonex

    No offense taken. I was just meaning I understood.

    October 26, 2011 at 10:06 pm | Report abuse |
  5. RUFFNUTT (kcmo resident and smoker of fine purple kush)

    how about... how about " dick the platapuss"

    October 26, 2011 at 10:07 pm | Report abuse |
  6. RUFFNUTT (kcmo resident and smoker of fine purple kush)

    or... "jimmy chonga..?" ,, mud butt pup?

    October 26, 2011 at 10:08 pm | Report abuse |
  7. RUFFNUTT (kcmo resident and smoker of fine purple kush)

    harry richard the VIIX

    October 26, 2011 at 10:10 pm | Report abuse |
  8. dragonex

    I was meaning NATO and Obama, our drones when I said NATO/Obama. I was condensing my typing so to speak as I am getting tired. I was up late last night and am tonight.

    October 26, 2011 at 10:10 pm | Report abuse |
  9. peacan

    Smoking too much 'purple kush' are we? dude you are the one who stick his head in the room to spout off one liners, why don'tcha cool your heals and say something.

    October 26, 2011 at 10:11 pm | Report abuse |
    • RUFFNUTT (kcmo resident and smoker of fine purple kush)


      October 26, 2011 at 10:31 pm | Report abuse |
    • ConTroll

      i"ll say fail as a dude! Oh yeah, you fail as a chick, too Mary Jazzz

      October 26, 2011 at 11:28 pm | Report abuse |
  10. peacan

    @ dragonex, I hear ya and am hitting the sack right now, want come join me 🙂 LOL nite my pretty

    October 26, 2011 at 10:12 pm | Report abuse |
    • ConTroll

      Your goimg that way now, Jazzz? well, I guess so since Chinaman/Phil says he celibate....LMAO!

      October 26, 2011 at 11:25 pm | Report abuse |
  11. peacan

    opps, meant 'heels' nite all

    October 26, 2011 at 10:21 pm | Report abuse |
  12. RUFFNUTT (kcmo resident and smoker of fine purple kush)

    DONT FORGET To turn on your night light or the rainbow deamon will get you.. he also cant stand 5 leaf clovers... or pecans, or catsup packs folded in half under a toilet seat...

    October 26, 2011 at 10:33 pm | Report abuse |
  13. peacan

    ROLMAO, Dude Me and YOUR women are tryin to sleep, keep it down!

    October 26, 2011 at 10:39 pm | Report abuse |
    • ConTroll

      You DID turn! Whassamatter, the vibe action isn't cutting it for you?

      October 26, 2011 at 11:27 pm | Report abuse |
  14. RUFFNUTT (kcmo resident and smoker of fine purple kush)

    better watch it... for 2 gold coins and dance in traditional holland klompens the rainbow deamon will follow one simple order...
    like " eat all the peacans " or ,,, " scare peacan till explosive sharts are heard "...

    October 26, 2011 at 10:48 pm | Report abuse |
  15. peacan

    Dude mine exploded at LEAST 3 times tonight, (rolling over to ask YOUR girl) right honey? Yup, I'm guessing by the smile on her face, she agrees 🙂 Nite LOLOLOL

    October 26, 2011 at 10:58 pm | Report abuse |
    • ConTroll

      Naughty naughty, Mary/Jazz! Does it excite you to pretend to be a guy? What would Chinaman say?

      October 26, 2011 at 11:23 pm | Report abuse |
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