Extraction of oil in Libya by Eni S.p.A., the biggest Italian oil and gas company, increased up to 300,000 barrels a day, said senior Executive Director of Eni Deskalzi.
Owing to that Italian company’s extraction in this African country returned to the pre-war level (2010).
During the past several months we have seen oil price dropping to the six year minimum and going up to almost $70.00 per barrel.
But the current reality cannot last long, because the balance at the oil market is very fragile. For instance, Iran could put up to 1 million barrels of crude oil to the world market and production in Libya could go up.
The last slump of oil prices was caused by disturbances in Libya as well. In early May mass protests and armed clashes have led to suspension of operation of Zuetina port. Export dropped below 500,000 barrels a day.
Considering the dynamics of deliveries from Libya during last year, one can notice that oil production and export are very unstable. Export could go up again, considering total volume of world deliveries.
The extracting companies have drilled 4,731 wells from Texas to Pennsylvania in US. These are sort of underground storages, which any time could be used to extract 322,000 barrels of oil a day or the volume comparable to the level of production of OPEC member-state Libya in 2015, according to Bloomberg Intelligence. This phenomenon is named fracklog in the US.
