If the Libyan freedom fighters can just get Gaddafi, then our troubles will be over. Oil will be flowing and the global economy will get back on track. There may be a fall in prices on the end of fighting, but Libya is a long way to getting oil moving again.
Libyan used to produce 1.6 mm barrels of high quality oil. They are now down to 50,000 but could get back to 300,000 in three months. Industry experts say that it could be well over a year to get back to pre-war levels. Looting and damage to port facilities is a problem. and the best oil comes from mature fields in Eastern Libya which will need repairs. We could also see production declines from other Arab countries as Libyan supply increases.
There will not be an energy solution in 2011.
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