Tuesday, February 22, 2011

Libyan oil production and exports could be curtailed, and oil cutoffs could spread quickly

Oil prices are rising quickly because rebels in Libya have threatened to cutoff oil exports of Muammar Khadafy doesn’t move on and leave.  It’s not clear that they could carry out their threat.

NBC affiliate KETV (Denver) has a major story and video. Egypt was not a producer of oii (it controls the Suez); Libya has the biggest oil reserve in Africa.

CNN says that Libya specifically is driving most of the sudden oil price spike. But there is fear that it could spread: what if Saudi Arabia develops unrest, or if Venezuela tries to capitalize on the situation.  Yet a CNN interview with an oil analyst below is not that pessimistic.

Libya controls 2% of the oil we consume.  Strikes are reported in some oil fields in Libya.

Wikipedia attribution link for CIA map of proven oil reserves  

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