Libyan Oil Production

May Global Oil Supply and the Libyan Mini Shock

Disquieting Saudi Oil Indicators and the Next Oil Shock

Saudi Arabia did not make up for Libyan Oil

IEA: March Oil Supply Down 0.7mbd

Libyan Oil Production Down 230kbd in February

Interpreting Recent Oil Price Moves

Hope for Libyan Oil Production?

This is interesting:

In Benghazi, rebels have said that Libyan soldiers had joined the rebels in securing vital oil industry facilities around that part of the country. Some oil industry workers fleeing across the Tunisian border in recent days said they had seen Libyan soldiers fire their weapons to drive off foreign mercenaries or other security forces who had approached oil facilities not far from here.

Hassan Bulifa, who sits on the management committee of the Arabian Gulf Oil Company, the country’s largest oil producer, said Sunday that the rebels control at least 80 percent of the country’s oil assets, and that his company, based in Benghazi, was cooperating with them. The company resumed oil shipments on Sunday, loading two tankers at a port in Tobruk, Mr. Bulifa said. The ships — one bound for Austria and the other for China — represented the company’s first shipments since Feb. 10.

Although the revenue from those sales goes the company’s umbrella organization, Libya’s National Oil Company, Mr. Bulifa said Arabian Gulf Oil had ceased any coordination with the national company, though it was honoring oil contracts. And he insisted the proceeds would ultimately flow to the rebels, not Colonel Qaddafi. “Qaddafi and his gangsters will not have a hand on them,” he said. “We are not worried about the revenues.”

Too soon to know how much emphasis to place on this, but certainly worth watching. If the rebels can keep society organized well enough for the oil to keep flowing, the externalities to the rest of the world will be a lot less severe.  Money to fund the rebellion, too. Qaddafi has certainly made himself a pariah at this point, and it's devoutly to be hoped that the rebels succeed both in displacing him, and in creating a better society afterwards.

No, no, no, no!

Bloomberg:

Spain will lower highway speed limits, cut train ticket prices and use more biofuel under an emergency energy-saving initiative because of soaring oil prices brought on by unrest in Libya, an official said Friday.

and

Finally, oil companies will also have to add more bio-fuel to the gasoline and diesel they produce — from the current mandatory 5.8 percent proportion, up to 7 percent, the deputy prime minister said.

Emphasis mine. This is an unbelievably counterproductive thing to do. A significant part of the cause of the unrest in the Middle East is due to high food prices. The regimes are all rushing out buying food in an attempt to appease their populations. The unrest is now sharply increasing oil prices, and the geniuses in the Spanish government want to respond by calling for more food to be converted into biofuel, thus further increasing the strain on food prices?

Nine Million Barrels/Day?

Why Can't Saudi Crude Replace Libyan?

Libyan Oil Grinding to a Halt

Here's the latest:

At least 300kbd-400kbd of oil production are shut-in already, and likely more, but the situation is still confusing.

As much as a quarter of Libyan oil output has been shut down, Reuters calculations showed on Wednesday, as unrest prompted oil companies to warn of production cuts in Africa's third-largest producer.

Austria's OMV said on Wednesday it might be heading for a full production shutdown in Libya. Total, Repsol, Eni and BASF have also said they are either slowing or stopping output.

The latest comments point to a growing impact on oil output from Libya, which produces 1.6 million barrels per day (bpd) of high-quality oil, or almost 2 percent of world output. About 1.3 million bpd is exported, mainly to Europe.

According to Time Magazine's Robert Baer, anonymous sources close to Gaddafi say he is now giving orders to sabotage Libya's oil industry:

There's been virtually no reliable information coming out of Tripoli, but a source close to the Gaddafi regime I did manage to get hold of told me the already terrible situation in Libya will get much worse. Among other things, Gaddafi has ordered security services to start sabotaging oil facilities. They will start by blowing up several oil pipelines, cutting off flow to Mediterranean ports. The sabotage, according to the insider, is meant to serve as a message to Libya's rebellious tribes: It's either me or chaos.

Libyan ports are shutting down:

Libyan cargo port operations have shut down due to increasing violence sweeping the country, Reuters has reported.

Operations at Tripoli, Benggazi and Misurata Mediterranean ports, which handle general cargo and container shipping, have closed.

In particular, oil exports appear to be halting completely:

Operations at Libyan oil ports were disrupted by a lack of communications, trade sources said, and flows from marine oil terminals in Libya were halted on Tuesday, an Italian government source said.

"The situation is worrying. This morning the oil terminals were blocked in Libya," the government source said.

It was not possible to get through by phone to Libyan oil ports or shipping agents on Tuesday.

"Everything is out," said a source with a major oil company. "We can't get through to anyone. Our operations people say contact is impossible with the shipping agents, port officials, anyone. The lines are all down."

The country appears to be descending into civil war:

Col. Muammar el-Qaddafi of Libya kept his grip on the capital on Wednesday, but large areas of the east of the country remained out of his control amid indications that the fighting had reached the northwest of the country around Tripoli.

Libyans fleeing across the country’s western border to Tunisia reported fighting over the past two nights in the town of Sabratha, home of an important Roman archeological site 50 miles west of Tripoli. Reuters reported that thousands of Libyan forces loyal to Col. Qaddafi had deployed there.

“The revolutionary committees are trying to kill everyone who is against Qaddafi,” said a doctor from Sabratha who had just left the country, but who declined to give his name because he wanted to return.

Of course, as for the oil production losses, the Saudi's say they stand ready to make up the difference:

“OPEC is ready to meet any shortage in supply when it happens,” the Saudi oil minister, Ali al-Naimi, said at a news conference after a meeting of ministers of oil producing and consuming nations in Riyadh, Saudi Arabia. “There is concern and fear, but there is no shortage.”

The next few months' oil statistics are going to be interesting, to say the least. It now seems increasingly likely that Libya's oil production (about 1.6mbd) is largely going to halt, or at least not get exported.  So we will see if Saudi Arabia's production really will rise to compensate. The problem, of course, is that Mr al-Naimi's idea of what constitutes a "shortage" may not be the same as the rest of us.

OPEC Stability Watch

Libyan Oil Production