Will Libya succeed in improving oil and gas prices after OPEC fails to stabilize production?

Will Libya succeed in improving oil and gas prices after OPEC fails to stabilize production?

In the midst of the deterioration of the Libyan economy , with lower oil and gas revenues, the rise of Libyan government expenditure, and with the stabilization of levels of production from the Organization of Petroleum Exporting Countries (OPEC).

With the current situation of the oil-exporting countries as well as others exporting oil countries, may maintain prices that have deteriorated significantly since mid-2014, pushing crude prices up again.

Libya is in desperate need of the success by pushing for the rise in oil and gas prices in world markets and this is only after the world's oil reserves continue to decline.

High demand for oil in the coming period will increase when demand for crude is offered in the world's oil reserves, but at the same time inventories will continue to remain the same until the end of 2018, according to forecasts issued by the International Energy Agency in its report last month on the global oil market.

However, the level of oil production in Libya in general and especially in the field of spark Oil Field (Sharara Field) has been declining due to the internal conflicts in Libya and the abduction of foreign and Libyan employees by unknown armed groups, which confused the production process in the field of spark, to convert its production to the refinery to meet the needs of the Libyan internal state.

The geopolitical conflicts have an immediate impact on the public finances in Libya and the negative factor in the process of improving the independent strategic location of the National Oil Corporation and the provision of foreign currency to the Libyan state to develop comprehensive economic development programs in Libya.

Libya is not necessarily involved with the OPEC members in the coming meetings to determine the ceiling of oil production or even freeze production to maintain the prices, which have increased in the coming year of the decline of global oil reserves against the backdrop of the exhibition.

The opportunity that Libya has at the moment is the opportunity to work hard to increase production of oil and gas with the increase in world oil prices in the coming years, oil and gas prices rise will rise strongly during the coming period and Libya should be prepared for those hopes of rising prices.

The world today is heading for economic changes and global economic growth will work to help Libya emerge from the suffocating economic crisis, and the expansion will again be 1.5 million barrels per day in 2018 to reach global demand to 99.3 million barrels per day.

The Libyan currency (Libyan dinar) will recover and be flexible in dealing with the US dollar to raise the value of cash in internal business transactions after the deteriorations of the Libyan economic to a downturn gradually passing Libya hard time in the current period.

Libya has to get out of the controls imposed on it within the OPEC in determining the ceiling of production and work on the expected growth of 1.5 million barrels per day of next year and the request of the United States of America Libyan crude oil in the near future.

But this is the dynamic of the very diverse special industry that Libya is supposed to pursue in the coming years, and it is possible that Libya's economic growth will faster than we expected in the past years.

A scientific method of storage based on its operations principles, views and values ​​of the bases in the basic rules of oil characteristic used as a guide to work on the rise in crude oil stocks in the world again, as it was in the past to a decline in world oil prices.

Further gains are expected from Brazil and Canada in 2018. The United Kingdom, Kazakhstan, Ghana and the Congo (Brazzaville) will see a rise in production next year, while the decline is expected from Mexico and China.

Global demand continues to show growth of 1.30 million barrels per day despite the large drop in demand estimates in the second half of this year, the temporary slowdown in the first half of this year is due to the geopolitical factors in the world.

Improving oil and gas prices in Libya is a work to reduce the upward pressure on retail prices in Libyan markets and decouple liquidity in banks operating in Libya, mainly due to global demand for Libyan crude.

Realism in the Libyan economic planning is based on the unification of the Libyan financial institutions, especially with the Central Bank of Libya and the independence of the Libyan Oil Corporation, which will work to unite the Libyan political institutions between East and West.

The fundamental truth is based on the financial situation in Libya and the avoidance of surface emotion and cold love that leads Libya to separate the three regions from each other and to adopt the good morals of the Libyan society that enables Libya to unite itself again.

By Professor Ramzi Halim Mavrakis

A Libyan businessman based in the United States of America