Saudi Arabia, Libya's crude oil to fill gap

CAIRO (AP) - The CEO of the Saudi oil giant state-run says he intervened to offset a shortfall in exports due to unrest in Libya.

Saudi Aramco, Khalid Al Falih refused on Monday to determine how much more oil from Saudi Arabia - de facto leader of the Organization of Petroleum Exporting Countries - is pumped in the market.

Libya produces about 1.6 million barrels per day and exports a large part of this oil in Europe. But the struggle that has gripped the nation that Muammar Gaddafi struggle to cling to power has led to a decrease of at least 50 percent of production.

Saudi Arabia and other OPEC members have said they are willing to intervene to offset export losses Libya.


MADRID (AP) - The Libyan oil industry is in chaos - and nobody knows when it runs out.

equipment exchange gunmen facilities of oil fields. German and British commandos to conduct secret raids in the Libyan desert to rescue the oil workers stranded safety dissolve quickly in remote camps.

Port workers in Libya, the fear of being caught in the violent repression of protesters, Muammar Gaddafi, can not come to work, leaving the empty tanks floating around the Mediterranean to the expected load of crude oil.

And European oil companies to extract the black gold of Libya is in crisis mode, trying to stranded workers abroad and security amid conflicting reports about how much oil is being pumped and only if, c that's all .

It was only last week and oil prices rose more than $ 99 a barrel Monday in Asia as a violent struggle for power in Libya have continued to disrupt oil production, with events also in Oman increased fears that political turmoil could affect oil exporters.

Nobody knows if Qaddafi or rebels trying to oust him will eventually control the reserves of Africa more oil. They fear that Libya could become a divided nation with rival armed groups rule over the rich desert and distance are hundreds of miles (kilometers) away.

The chaos in Libya, which descends into a virtual civil war has international oil prices soar despite the promise of Saudi Arabia, the world's largest exporter of oil, the increase in exports. And that volatility will continue, as it could take weeks or months to produce and export Libya return to normal levels, according to experts.

He has already sent oil traders during caffeine in a frenzy that did not calm until there is clarity about what is happening on the ground in Libya.

The International Energy Agency said Friday that Libya is probably still producing about 850,000 barrels per day below its normal capacity of 1.6 million barrels - but acknowledged the estimate is based on "incomplete, contradictory."

Libya produces a little less than 2 percent of world oil, but their customers are mainly European. Those most affected by the shortage of oil refineries European suddenly receives 85 percent of Libya's exports, making crude praised the country in diesel and jet fuel.

The major buyers are Italy, France, Germany and Spain - and Spain is so concerned about it announced on Friday that the highway speed limit be reduced to March, desperate to reduce fuel consumption.

The biggest problem with oil companies and European consumers, who depend on oil from Libya is almost complete breakdown in Solid Information. Cell phones rarely work in Libya, the Internet is intermittent, and the workers are fleeing looters are grabbing what they can or as a threat, until further order is restored.

While the British army desert stage daring rescues on Saturday and Sunday, hundreds of oil workers, other workers were on their way through the Sahara desert in convoys of buses to the Egyptian border - a grueling journey.

One of the evacuees, said the military machine, got up in Libya has had to make about 65 people, but quickly grew to double that.

"It was very tight, but we were happy to be there," Patrick said Eyles, 43 years old, Colombia, the international airport.

German Air Force has also evacuated 132 people in a military secret, but thousands of other foreigners who are still stranded by bad weather Tripoli and bureaucracy.

Spain's Repsol-YPF oil company said Tuesday it had suspended operations in Libya, only to discover one day after the oil fields it operates with other companies were still producing 160,000 barrels of oil per day. But that was less than half of the 360,000 barrels produced before the start of the crisis.

Despite reports that the production was underway in the vast Sahara desert fields Amal Libyans never before permitted to approach the oil fields during the reign of Qaddafi appeared armed and took everything they could - vehicles four-wheel drive, pumps and generators. One group came up with a trailer and tried to remove a large crane, said Gavin Salis, President of Great Britain OPS oilfield services company internationally.

"Nobody shot anybody," De Salis. "But the people were with dogs, guns, saying," Thank you, we will take a car because you're leaving anyway. "

Two buses organized by the Society Salis ferries were 117 expatriate workers from Egypt, on Sunday, a journey expected to take 24 hours or more, and he told another bus would take 25 foreigners out.

Even though the production seems to lameness in one - and Repsol have reported that the oil workers in Libya are ongoing activities to leave Finnish expatriates - the oil is not out of it. Sailing 320 miles (520 km) gas pipeline under the Mediterranean, Libya, the Italian island of Sicily is closed for a week, without the guidance of its owner, the Italian energy company Eni SpA, which could start pumping again.

"Most of the Libyan ports are closed due to inclement weather, staff shortages or failure of production," the IEA said. Ports are essential because Libya's oil heads overseas on tankers.

Major container companies have suspended deliveries or pickups Libyan ports do not know when shipments will resume. Tankers shipping to Europe have been told to stay more than 100 miles (160 km) off of some Libyan ports and wait to see if they can safely dock and take the oil.

The massive oil terminal Brega, Libya hydrocarbons second complex was virtually deserted on weekends, with reduced operations by almost 90 percent since the employees had fled and the boats are not shown.

Brega complex west, about 125 miles (200 km) of the rebel stronghold of Benghazi, collects oil and gas in Libya to the south-east and to prepare it for export. Since the crisis began on Feb. 15, but the format leader Fathi typically said that production had fallen by 90,000 barrels of crude per day 11,000

Huge spherical tanks and rapidly filling the tanks of oil and natural gas, and the ships to keep out of production in southern areas, has throttled back up to Brega to eliminate some of its capabilities.

Major oil companies have remained silent about the political situation can occur, because they want to produce oil if Gaddafi ends well, or someone in charge, and not worth it for them the risk of alienating one of the groups competing for power, said Mohamed El-Katiri, a Middle East analyst at Eurasia Group risk consultancy group.

In the worst case, El-Katiri predicted could take four to six months, and civil unrest in Libya easily.

"Such a scenario bodes poorly for a view of the oil in two ways: Not only does it compromise the production with Gaddafi is still in power, but violence has continued could further complicate the ability to order post-Gaddafi policies to emerge in a way that creates a stable security environment inside, "said El-Katiri.

chairman of Repsol, Antonio Brufau, told reporters he would have his last overseas workers through cycles where it is needed - and El-Katiri said oil companies would not send them home until they know that it is safe. Salis said some residents could return without a central government, but only if the local security situations improve.

Leaving the oil fields in Libya abandoned creates more security problems. villagers of opportunistic Nigeria, rebels, or pirates often tap pipes dangerous attempt to steal fuel, leaving many killed or maimed in accidents and pipeline sabotage compromised.

About the only positive sign for the future of Libya's oil, is that experts estimate that as Qaddafi and the rebels want to resume the suspension of oil operations as quickly as possible because Libya's oil wealth covet.

"For Gaddafi, using the money because it can continue paying its militias and mercenaries to keep fighting and the faithful," said El-Katiri.

The rebels, meanwhile, not wanting to offend the Western governments, which depend on Libyan oil, "he said, and we also need money to be strong enough" to withstand the attacks of Gaddafi. "