Wednesday, September 11, 2013

Armed rebels in Libya have hijacked the oil

Billions of dollars’ worth of oil are now under the control of armed rebels in Libya, costing the country more than $130m (£82m) a day on the global market.

Libya was producing approximately 1.5 million barrels of oil a day earlier this year, compared to last week’s total of 700,000, confirming the long-held belief that whoever controls the energy, controls the fate of the nation.

The rebel groups consist mostly of former employees who had been hired to guard the country’s oilfields. Although they aren’t making any specific demands, rebel leaders cite industry corruption as a main inspiration for their siege. Not much has changed since vicious dictator Muammar Gaddafi was removed from office two years ago, they claim. Others are demanding more autonomy for the country’s eastern borders, where most of the oil lies. Still others are striking over salaries, or being fired and replaced by former militia members willing to work for less.

In response, the Libyan government is moving forward with treason charges. They believe the rebels are seizing the oil in an attempt to sell it themselves, and what’s worse – they’re afraid the civil unrest will ward off foreign investors who currently operate many of the country’s largest oilfields.

“The security issue is essential, and we know a situation like this is not encouraging for investment, but I assure [investors] it's temporary, not permanent," says Deputy Oil Minister Omar al-Shakmak.

Libya’s parliament has already passed legislation to raise civil servants’ salaries by 20%. But is it a little too late? Now that the rebels control the oil, are they really motivated to comprise?

All authorities can do for now is petition local citizens to put added pressure on these protestors in hopes that familial and communal tensions will force them to surrender.

"A lot of [the trouble] has to do with day-to-day expectations not being met, politicians and government failing people at the very basic level in terms of service delivery," says Ahmad Safar, an independent economic adviser. "We haven't seen a decentralized system that guarantees equal share to the wealth of the country; we haven't seen proper and fair distribution among Libyans - south, east, west, north.”

Roughly 30% of Libya’s fuel is refined domestically. So when rebels initially hijacked the oil, fuel shortages resulted in mass panic. People started stocking up on gasoline and propane. There were lengthy blackouts. Oceans of stand-still traffic. Even shoot-outs.

NRGLab is working towards preventing situations like the one in Libya from erupting elsewhere in the world. By empowering people with cheap, reliable access to electricity, we can break free from the bonds of a centralized energy infrastructure. We can take precautions against corruption. Prevent civil wars. Save lives. And create a greener, more sustainable future for our children.



For more information on how NRGLab plans to revolutionize the way we approach green energy, visit nrglab.asia, or follow us on Facebook at facebook.com/NRGLabJohnWish.

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