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.

Post by:
Filed under: Libya
soundoff (99 Responses)
  1. Trolls in a row

    Night controll and chrissy. Now I know what to expect when I come on here.

    October 27, 2011 at 12:03 am | Report abuse |
  2. chrissy

    aww raven, dont protect her girl ur better than that lmao is it ur day off?

    October 27, 2011 at 12:04 am | Report abuse |
  3. raven

    peacan is jazzz? which jazzz? the one who cussed people out,called em names,hooked up with dudes,gave out her phone number, (ahem )(quote )microblogged,constantly complained about being hurt by other posters while instigating fights? or the new jazzz,who suddenly hates all the above ?

    October 27, 2011 at 12:07 am | Report abuse |
  4. ConTroll

    Expect me only when i see stoooopidity. Today was mary's turn. Later, people.

    October 27, 2011 at 12:07 am | Report abuse |
  5. raven

    Hi chrissy!! Ive been wanting to tell you that I been thinkina you. Didnt wanna mention your name without you bein here cuz, well, yknow .. I didnt wanna open any doors. But I hope youre feeling better. I was really concerned about you.

    October 27, 2011 at 12:11 am | Report abuse |
  6. chrissy

    good nite trolls in a row and dont be surprised one day they will use ur name too. and @ controll i know u do sweetie, and i always appreciate it cuz sometimes its just exhausting dealing with them. so thank you.

    October 27, 2011 at 12:12 am | Report abuse |
  7. Trolls in a row

    What goes around, Harlet, bible thumper.

    October 27, 2011 at 12:12 am | Report abuse |
  8. raven

    Yeah, finally got a day off.. tomorrow too but i gotta get up at the buttcracka dawn anyway. How you feelin,girl ?

    October 27, 2011 at 12:14 am | Report abuse |
  9. Trolls in a row

    Good night girls and I will see you all.

    October 27, 2011 at 12:15 am | Report abuse |
  10. raven

    Night-night, TIAR.

    October 27, 2011 at 12:18 am | Report abuse |
  11. chrissy

    hi back raven and even when im not here she tries to be me and the answer to ur question on jazz would be all of the above. cant believe at one time i called them both friends. as for me im feelin better i get tired easy tho and food sux lol

    October 27, 2011 at 12:19 am | Report abuse |
  12. chrissy

    nity nite controll

    October 27, 2011 at 12:23 am | Report abuse |
  13. raven

    I know , thats why I didnt wanna bring your name up . Wanted to make sure it was really YOU and not give em any ammo or reason to start in on you. Heart disease runs in my family (cardiomyopathy) and I worked in that field for quite a while. Wont offer any unsolicited advice as Im sure youre gettin lotsa that, but if you have any questions, Im here .

    October 27, 2011 at 12:26 am | Report abuse |
  14. chrissy

    hey raven if u want my number to text me ever ill have donna text it to u ok?

    October 27, 2011 at 12:26 am | Report abuse |
  15. chrissy

    and i go see my cardiologist again monday and he better behave! last time i was at his office he did that nuclear stress test! i wanted to kill him or at the least maime him lmao

    October 27, 2011 at 12:32 am | Report abuse |
1 2 3 4 5 6