Oil and its opportunities in Libya
Libya produces around 1.5 million barrels of oil every day making the industry an attractive investment for foreigners. Our wells produce light, sweet crude that comprises a low sulfur content making it much easier to refine than other types of oil. This type of oil has been favored in European markets and in fact Libya owns Africa’s largest proven reserves amounting to approximately 46 billion barrels.
Recent times have seen the global price of oil rapidly surging but Libya has managed to decrease the average cost of barrel production allowing for substantial profits to be gained. The aim in 2013 is to attempt to produce over 2.5 million barrels a day and it is this ambition that has had more European oil companies flocking towards the country along with new investors to help them reach their goal. But substantially more investors are required to turn this objective into a reality.
The Libyan oil sector in fact accounts for 80 percent of our gross domestic product and a weighty 97 percent of exports. At present, Italy is the largest importer of our oil, making up about 32 percent. Other western companies that import our oil include France, Spain, Germany and the U.S.
At present, the performance of our economy is incredibly positive as we witness a steady decrease in the inflation rate and a stable exchange rate of the Libyan dinar. Our close proximity to the European markets also plays a vital role. Thanks to the lowering of taxes and lifting of restrictions, we are seeing a boom in imports and since we now offer political stability and security, it makes sense to invest in Libyan oil.
Not only do we offer the largest reserves in Africa but we are the fifth largest in the world and offer low production costs plus there is still a great deal of land to be explored.