Libyan Oil

The political crisis in Libya is getting worse.

[http://www.theguardian.com/world/2014/aug/03/royal-navy-libya-rescue-uk-nationals-tripoli]

The tragedy of Libya is that this country has massive mineral wealth.

Just take the oil reserves and its oil production.

Libya has proven oil reserves of 48,000,000,000 barrels of oil.
That is 48,000 million barrels of oil or 48 Billion barrels of oil.

Crude oil today is worth $104.66 a barrel. Thus the oil reserves of Libya are worth

48,000,000,000 x $104.66 = $5,023,680,000,000

That is $5 Trillion = £2.985 Trillion = £2,985 Billion. (that is about 200% of UK annual GDP).

Today Libya oil produces 1,509,000 barrels of oil a day.
That is worth:

1,509,000 x $104.66 = $157,931,940 = £93,855,700, yes £93 Million a day.

It is a real pity that with an income stream of £93 Million a day just from oil, Libya should be a wealthy country, with the EU as a massive customer, just across the water, and yet we see today that Libya is in much a political mess.

Leave a Reply

Your email address will not be published. Required fields are marked *