Charles Edison

"Economics, politics, and personalities are often inseparable." - Charles Edison

Wednesday, October 26, 2011

Gadhafi's death helps clear way for oil exports

A oil producible country have a huge impact toward the world economy. Oil is the basic of transportation and an inelastic demand for global business. Before the Civil War in Libya started, they has the most oil reserved in Africa which producing about 1.6 million barrel of oil per day. Libya ex-leader Gadhafi reduced the export of gas with violence during the civil war which elevated the international gasoline price. Libya was in the command economic system which was leaded by Gadhafi, but now the Libyan has the freedom on their own. After Gadhafi was proved that he was overthrown, the gasoline price was lowered with the thought of increase of oil exports from Libya. But the major problem is that Libya is without a government system and few national institutions left in the country. Without a government, there is no representation for Libyan which won’t guarantee the safety of oil fields workers and the security of the oil export. However, many analysts predict that Libya will soon increase the oil production which will reduce the world fuel price. Oil is valuable, and its demand and supply are easily disturb by a event.

5 comments:

Smith said...

How can we be sure they will increase their oil exportation with no stable leadership in place? Why would Libya want to increase their oil exports?

Daniel K. said...

Libya could want to increase their oil exports because with the fear of no longer having a stable governtment, and knowing that oil is their best way of making money, the government will want to do whatever it can to make sure the economy doesnt lose money. And oil production is their way of making money and holding up a strong economic system.

Wei said...

Libya is currently reforming itself. It became a free country, and people did gained more rights. And yes, the biggest problem is that Libya had oil exportation of 1.6 million barrels of oil per day under the government of Gadhafi until the rebellion started and it might not be as many oil productions as it was. Stabilizing the politics situation is what needs to be done first in Libya. Those consumer countries will want Libya to increase the oil exports and possible give pressure on Libya. Country knows its own specialty of their exports for the world. Libya has the nature resource of gasoline which is important to the world. Libya doesn’t make enough money to support the economy itself. Digging out oil and export more gas is the fastest way to do it.

Matt said...

Hopefully with the death of Gadhafi, oil prices will go down and I won't have to spend 80 bucks to fill up my truck all the time. Libya should get someone to run the oil exporting line now that knows what he's doing and isn't greedy that will charge a lot for us to get oil to the US.

Josh T. said...

Now that Gadhafi no longer assumes control over foreign affairs in Libya, I think that oil production and exportation of goods will significantly increase. Much of the violence that was associated with Gadhafi's treacherous reign will subside and the Libyan economic standpoint will return to normal. The exportation of oil in my opinion needs to be responsible for getting Libya back on its feet.