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Libyan conflict

Oil war on fields of Libya

Published: 07 April, 2011, 12:58
Edited: 07 April, 2011, 17:58

Libya: An unidentified target burns in the background as a Libyan rebel fighting forces loyal to leader Moamer Kadhafi smokes a cigarette outside the eastern oil town of Brega. (AFP Photo / Odd Andersen)

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TAGS: Oil, Conflict, Military, Protest, Politics, Paula Slier, Resources, Libya


The war in Libya is now raging on the country’s oil fields. British planes have reportedly bombed the major Libyan oilfield Sarir. This follows attacks by pro-Gaddafi forces on oil reservoirs to prevent rebels from selling the crude.

British aviation hit the Sarir oilfield on Wednesday, in an attack which killed three civilian guards and injured an unknown number of other workers, Reuters news agency reported.

The agency quoted the Gaddafi regime’s deputy foreign minister Khaled Kalim as saying that the attack had damaged a pipeline connecting the oilfield to the Mediterranean port of Hariga. The source offered no evidence that the planes that hit the target were actually British.

However, NATO rejected the accusations that its air strikes caused a fire in the Sarir oil field. According to Reuters, NATO officials said the alliance had not carried out any strikes in the area, and Gaddafi's forces are to be blamed instead.

Rebel forces announced on Wednesday that attacks of pro-Gaddafi forces on the Sarir and Misla oilfields have lead to a virtual halt of oil production in the area. The oilfields are part of the Sirte Basin region, containing 80 per cent of the country’s oil.

The announcement came as the rebel’s first tanker with oil left the city of Tobruk to be exported. The tanker, named the Ecuador, is heading for China, AP news agency reported. The rebels plan to use the profit to pay for food, arms and medicine for their forces.

"I think we will not depend on oil revenues in the coming stage because our production has been affected in this crisis," the rebel’s spokesperson Abdel-Hafidh Ghoga was quoted by Al Jazeera television as saying. "Colonel [Gaddafi] seeks to deprive us of even this by hitting the oil fields that feed this port. This is our wealth and we have to protect it."

He added that the rebels can no longer sustain the 100,000 barrels a day they had been producing. The rebels still have about a million barrels in storage in Tobruk, the television network reported. On April 1, the Libyan opposition agreed to sell oil through Qatar in order to sustain its troops fighting against Muammar Gaddafi. Qatar has acknowledged the Libyan opposition as a legitimate authority. 

Libya started extracting oil in 1959 and has been exporting it since 1961. In 2009-2010 the country produced about 1.56 million barrels daily, selling it to a number of European countries, the United States, and China. Oil profits constituted 95-97 per cent of the Libyan export, being the main source of the country’s financial reserves.

Since the beginning of the fighting in Libya, most oil export activities have stopped in Libya due to infrastructure damage. Rebels have captured a number of oilfields in the east of the country.

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MEJanssen April 08, 2011, 09:21
0

This is what I was afraid of.  The "no-fly-zone" war will convert to "boots on the ground" because Europe MUST HAVE that oil and gas.  Qaddafi's troops are now out of uniform and look just like the rebels, so how do NATO bombers tell them apart?  And now Qaddafi is burning his own oil fields.  Italy and France must either give up 20% of their energy immediately or invade.  And they will be screaming at Obama to put American troops in there.

And there is no guarantee a NATO force will win.  Qaddafi is using battle-hardened mercenaries, experienced from vicious wars in Africa, against a bunch of shop keepers and university students.  A few thousand NATO troops will not prevent slaughter.  Plus, any refugees from the rebels fleeing to Europe will probably include Al Qaeda operatives.  This could be a long-term war, or at least, as long a term as it takes for the Europeans and Americans on the home front to overthrow their governments and bring the troops back home.

Nicholas April 08, 2011, 09:00
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Now I hope Russia can see, NATO action in Libya is about MORE than oil. It is about Western Economic theory. While the US continues in debt, it must pursue economies of scale in its military economy. These economies of scale are effective when; there is political diseconomy of internal division, the population is technologically compatible with US/ West Europe production factors, this potential resolution of technological compatibility is supported by rent generated investment capital such as oil(or any other mix of economic goods).  It doesn't matter to the US or France if oil prices go up short/medium or long term, oil refining conglomerates have to finance war up to their eye balls, what matters to the US/France etc is the acquisition of whole economies according to the continuing diffuculty of progressive tax rate economies world wide.  It is perhaps not time for Russia to justify the internal political integrity of US/NATO by making war upon the West in the name of revolutions of communist like self-criticism so many are scared or unable to perform!  For Russia the flat tax rate with political agility and inclusiveness must be the evidence of revolutionary effort!  Neither is it time for Russia to back away from standing up to progressive tax rate economies to defend Flat tax rate economies.  The ball is in the court of the smaller powers, will they practice inclusiveness and level the playing field of competition between the flat tax and progressive tax theories, or continue in psychophancy as if none had truly emerged from slavery and holocaust?  My apologies to those practicing flat tax rate economies who continue to experience political vacuum in the non-resolution of cold war exclusively progressive tax rate diatribe...

Aleksandar Hranov April 08, 2011, 02:59
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Wow, I'm surprised!..Anybody else surprised?.. I'll enjoy this for once and use my new-found idol's favourite phrase - or as Max Keiser often says here on RT "I hate to say it, but we predicted this!" - just look at RT, News, date: April 4th/2011, article -"Rebels' chances depend on NATO's determination", comment starting with "The way I see it is these "rebels" have chosen the wrong friends.."

Was it a difficult prediction to make?.. About as much as predicting that when hitting a bric wall with your head it's gonna hurt! You would expect that when it has happened alraedy a gazillion times people will learn, but that's too simple a conclusion now, isn't it; or another way to say that human stupidity knows no limmits. Poor Einsten must've been doing some observations on human behaviour along these lines too, when he came up with his definition of Insanity: "Doing the same thing over and over again, and expect different results."

BR

Aleks (from Bulgaria)