OPEC continues to struggle with oil production
Several workers were abducted from the Sharara oil field, Libya’s biggest, so authorities evacuated many employees and shut down most of the field on Sunday.
According to the National Oil Corporation, the oil field’s output will fall by roughly 160,000 barrels a day – almost half of their usual production levels. Sharara has faced many hurdles in the area, including protests and armed attacks. The political atmosphere of the area has plagued their production levels in recent months.
Sharara was anticipated to ship almost seven million barrels of oil in July, but they will not come remotely close to that figure after the kidnapping. This is just another setback for the company who had shut down operations in their eastern ports until July 11 due to political protests. Less than a week after reopening these ports, they will not be able to use them at their full potential.
Libya is Africa’s largest producer of crude oil, so these setbacks for their oil fields are bad not only for the country and its economy, but also global trade. If Libya cannot produce their normal crude oil levels, OPEC will find even more difficulty in reaching their production targets.
Until Libya can find stability in its political atmosphere, they will not be able to reach their maximum output levels. Consequently, consumers will continue to experience inflated oil and gas prices.
Featured image via Public Domain Pictures
