
Clashes in Benghazi
The North African nation’s oil production was reduced by 180,000 barrels a day after a fire at a pipeline that carries crude to the eastern Hariga port, National Oil spokesman Mohamed Elharari said by phone in Tripoli. Hariga, near Tobruk, has oil left in storage for exports and the last ship to load there was the Greek-flagged Minerva Zoe, he said.
Libya, holder of Africa’s largest oil reserves, was producing 350,000 barrels a day in January, Elharari said at the time. The nation may be producing less than 200,000 barrels a day after the pipeline fire. The previous lowest daily average was in March 2014, at 150,000 barrels. A member of the Organization of Petroleum Exporting Countries, Libya was producing 1.6 million barrels a day before the 2011 rebellion that ended Muammar Qaddafi’s 23-year rule.
Under Attack
National Oil Corp., or NOC as the company is known, has a majority stake in all of Libya’s oil and gas producing ventures. It has a 59 percent stake in the company that operates Bahi, an oil field that came under attack on Friday, with Marathon Oil Corp., ConocoPhillips and Hess Corp. holding the remaining 41 percent, according to an NOC statement about the attack.
NOC has said it was neutral in the conflict,which is pitting the Islamist-backed government that captured Tripoli last year against the internationally-recognized government that fled to the eastern region. The Petroleum Facilities Guard is loyal to the internationally-recognized administration of Abdullah al-Thinni.
The bombing of the pipeline followed attacks on fields in central Libya that Ali al-Hasy, a spokesman for the guards, blames on a local branch of Islamic State, the militants that have proclaimed a caliphate in parts of Iraq and Syria and is being fought by a U.S.-led coalition of Arab and Western nations.
Tank Fire
Islamic State is expanding in Libya and has created its own institutions in the eastern city of Derna, the Center for Security Policy’s website said, citing U.S. Defense Intelligence Agency Director Lieutenant General Vincent Stewart’s testimony to the Senate last week.
The Islamist-backed government publicly ordered an offensive in December by militias called Libya Dawn that caused a fire on storage tanks at Es Sider, Libya’s largest oil port. It distanced itself from an attack this month on the al-Mabruk field, in central Libya, south of the city of Sirte. More than 10 guards were killed and three workers from the Philippines taken hostage, Libyan officials said back then.
Qaddafi’s hometown, Sirte came under attack on Saturday by an armed group that seized government buildings including the social security, passport delivery department, hospitals and radio and TV stations, the Libyan News Agency said, citing its own correspondent. The employees were told to leave, it said, without identifying the assailants.
“Libya Dawn is saying it has nothing to do with the latest attacks but we see they have arrangement of convenience; Islamic State is doing what the Dawn militias have attempted to do and failed,” said the petroleum guards’ al-Hasy.
Should the flow to Hariga terminal from the Mesla and Sarir fields in eastern Libya remain closed because of the pipeline explosion, Libya would be relying mostly on its offshore production, from the Jurf and Bouri reservoirs, to continue oil exports. Its main onshore field that is still in operation is Elephant, or el-feel, in western Libya.

bobinget on Sat, 14th Feb 2015 7:02 pm
Just in:
Bomb hits pipeline from Libya’s El Sarir oilfield
TRIPOLI — A bomb exploded at an oil pipeline from Libya’s El Sarir field to Hariga port on Saturday, halting flows to the terminal as the North African OPEC nation struggles to restore crude exports battered by fighting.
Libya is caught up in a conflict among rival factions with two governments operating their own armed forces and separate parliaments, nearly four years after the civil war ousted leader Muammar Gaddafi. Hariga oil terminal supervisor Rajab Abdulrasoul told Reuters on Saturday the bomb exploded at around 5 a.m. approximately kilometers north of the El Sarir field. “A bomb exploded at a pipeline carrying crude between El Sarir oil field to Hariga port,” he said. “The firefighters are still trying to put out the fire. What happened is sabotage.” A spokesman for the National Oil Corporation said a tanker at been loading up on crude already at Hariga. But he said it could take up to three days to restore the pipeline. Hariga had just reopened after a strike by guards there, but the country’s two main oil ports and their nearby fields are still closed after clashes between rival armed groups trying to the control them. — Reuters
bobinget on Sat, 14th Feb 2015 7:26 pm
In fact, not a hell-of-a-lot of oil has been leaking out of Libya of late.
First off, realize, this entire ‘glut’ was orchestrated.
How do we know this?
Unless Saudi oil distribution (choke) points are destroyed, at least for one or two months, Saudi A will continue flooding oil markets.
Watch what Goldman Sacs and their stable of ‘authors’ are putting out on line. Keeping oil lower is key to higher over-al stock market averages.
“It’s always about oil”.
Apneaman on Sat, 14th Feb 2015 8:09 pm
LNG tankers lie unused around Singapore as gas downturn turns to crisis
http://www.reuters.com/article/2015/02/13/singapore-lng-tankers-idUSL5N0VM06U20150213?feedType=RSS&feedName=utilitiesSector
Plantagenet on Sat, 14th Feb 2015 8:13 pm
libya is one of obama’s greatest accomplishments
—-Joe Biden
Apneaman on Sat, 14th Feb 2015 8:28 pm
Just in case the other plan for global domination fails (manufactured glut, wink wink)here is the back up plan that won’t work either. Although they will probably try it.
North American Energy Integration Could Bring The Planet To Its Knees
http://oilprice.com/Energy/Energy-General/North-American-energy-Integration-Could-Bring-The-Planet-To-Its-Knees.html
theedrich on Sun, 15th Feb 2015 4:27 am
What difference does it make?
Hillary Clinton
dissident on Sun, 15th Feb 2015 7:48 am
If the rest of the Republicans are as demented as Christie then the US is truly lost.
Davy on Sun, 15th Feb 2015 8:26 am
Diss, the Repos are demented and the US “IS” lost. The US corruption, manipulation and the hijacking are complete. It is only though collapse of BAU that the good of the US will be restored. The sad fact is the same situation is present in all other regions and among the other major powers. All the critical nodes of BAU have been infected. This means the entire global system from politics to economics is infected. All countries and systems are compromised with no decouple.
The US being a declining dominant power poses the greatest danger but the US is by no means the only danger. The only decouple for locals is the end of the global. The medicine will be as bad as the illness but it is an end the must happen per Natures requirements that govern all ecosystems. For our purposes it is time frame that is the critical questions since humans are a rational time based species that evaluates their values based upon time. What is our time/value per collapse? That will depend on the unknowable “when” of the end of BAU. We can see the storm clouds so we know it is coming we just don’t have a weather report for the details.
Go Speed Racer on Sun, 15th Feb 2015 8:27 am
My car had a flat tire this morning. Its Obama’s fault.
bobinget on Sun, 15th Feb 2015 12:13 pm
Speed Racer makes a good point.
Congress, and, no matter who sits in the White House must follow orders of what appears to be the ‘shadow governments’ of Exxon Mobile, mkt. cap
422.1 Billion, Chevron, mkt. cap 227 Billion, Conoco,86.4 Billion and so on. (the only Western oil company larger the Chevron is UK based Shell @239. Billion. America’s top three ‘Big’ oils add up to almost a trillion dollars, this, at a time of the lowest oil prices in a decade with share prices to match. (adding up shares priced determines mkt. cap)
Facts are, US has more then ‘security’ at stake in the ME including Russia. We American’s are so deeply invested in Iraq, (2 trillion) for instance,
we can no longer ‘write-it-off’. Failure now means
a complete loss of face for Administrations and military alike.
Even hawkish politicians can’t bring themselves
to declare how vital Mideast oil is to a dead Marine’s mom. Liberals don’t dare belittle any American war casualty.
No president can stand up truth-tell to the people. Yet, evidence is clearly in.
If ‘tight oil and gas’ were even a temporary
solution to our current difficulty, we could simply
leave the Mideast to sort out its own problems.
If, that is Exxon would permit abandoning half trillion dollar investments.
So bash away at Bush, Clinton, Bush,
Obama, Clinton, Bush, it don’t matter, none of them
are about to imbue oil with any greater geopolitical relevance then it already has.
In human terms we are in “The War With-Out End”.
In geological terms we all know, ‘ when its gone, it’s gone’.
While we were busy ‘nation building’ AKA, failed colonialism, in Iraq and Pipelinastan, China has, in effect, cornered several ‘vital’ oil markets.
In this never-ending oil war, China succeeded
in elevating itself to America’s great next enemy.
Since these oil companies
bobinget on Sun, 15th Feb 2015 12:36 pm
I recommend anyone interested to read-up on Libya’s current ‘dilemma’. Two separate governments fighting over control of Libya’s oil wealth. (oil represents 95% of govt. revenue)
Every so called ‘terrorist’ group in the world is descending on Libya en mass, all eager to get a piece of the action. Libya is the next Syria, or Yemen, or Sudan or Nigerian failed states.
Here’s what I advise for those interested.
Watch events unfold in a world oil microcosm, Libya.
I’m guessing, Libya’s oil will be off line for years.
Two big reasons.. Damage done to infrastructure. Foreign oil workers, leaving conflict zones in droves.
Months ago, cessation of Libya’s oil exports evened out the world’s so called ‘oil glut’. Never-the-less
KSA, to maintain the fiction, continued to flood markets with cheap oil.
Mid year, shortages will appear. Prices will rise.
Apneaman on Sun, 15th Feb 2015 12:43 pm
https://libya360.wordpress.com/about/
bobinget on Sun, 15th Feb 2015 12:50 pm
Dear Mr Apneaman:
When oil is over $100. LNG seems like a deal.
What most folks are missing, LNG/CNG is used as an oil substitute.
Because LNG carriers use cargo as fuel,
distance matters.
BTW, oil tankers are doing great, thank you.
http://teekaytankers.com/About-the-Tanker-Market/Current-Tanker-Rates-Tanker-Market-Update/default.aspx
bobinget on Sun, 15th Feb 2015 12:53 pm
Good link!
Apneaman.
shortonoil on Sun, 15th Feb 2015 2:49 pm
Libya’s fields are old, water drive fields. If they are shut-in for any length of time they are likely to undergo irreversible damage. Without constant pressurization the drive water can flow under the oil column, and the oil becomes trapped above it. There is no way to fix it!
J-Gav on Sun, 15th Feb 2015 4:05 pm
Ooh, that’s a nasty one Short.
Speculawyer on Sun, 15th Feb 2015 10:33 pm
Arab Spring has turned into Arab failed states.
Syria in civil war. Yemen failed state. Libya failed state.
Egypt being taken over by the military is looking damn good these days. Especially after some Muslim Brotherhood guy posted a tweet approving of ISIS beheading the Coptic Christians.
GregT on Mon, 16th Feb 2015 12:26 am
“Arab Spring has turned into Arab failed states.”
Mission accomplished? Almost. Two more to go. Syria and Iran.
Davy on Mon, 16th Feb 2015 6:12 am
Greg, Syria is a failed state and one that was a failure because of the Assad regime and its Russian benefactor. Often you must go to the root cause of a problem and that is the root cause. A brutal dictatorship from family nepotism given aid and comfort by the Russians. IMA the Russians who never had concern for the Sunni majority of that country.
Iran will likely never be a failed state. They are a homogenous population of Shia’s so no ethnic issues. They are blessed with hydrocarbons. The US grip on them is slipping by the day. Iran is likely the next dominant ME power if they handle their cards right.