[UPDATE] Libya Oil Production Falls Drastically

By: Associated Press
By: Associated Press

[UPDATE] 3-13 4:18 PM --

CAIRO (AP) -- Libya's de facto oil minister says the country's crude production has fallen "drastically" as Moammar Gadhafi's forces battle to regain control over ports, towns and oil facilities along the Mediterranean coast.

The minister says he's asked an Italian oil company for help in putting out a big fire at the Ras Lanouf oil facility. Government forces reclaimed control of the port from rebel fighters this weekend.

Libyan state television is reporting that all ports are now in government hands, and that workers should resume their posts. It also called on security forces to guard the facilities.

But it remains unclear how much oil is being produced in Libya, or exported from the country. Despite the state television report, at least two main ports are still in rebel hands.

International sanctions on the country have seriously sapped the appetite for Libyan crude given the difficulties getting payments.


New York, NY (AP) - Stocks are finishing lower as higher oil prices
weighed on the market.

Oil hit a two-year high early in the day, nearing $107 a barrel, after forces loyal to Libyan leader Moammar Gadhafi launched airstrikes against opposition fighters at an oil port. Benchmark West Texas crude gained $1.02 to settle at $105.44 per barrel.

A sustained rise in the price of oil could hurt the economic recovery by raising transportation costs.

The Dow Jones industrial average fell 80 points, or 0.7 percent, to close at 12,090.

The S&P 500 index fell 11 points, or 0.8 percent, to 1,310. The Nasdaq fell 39 points, or 1.4 percent, to 2,745.

More than three stocks rose for every one that fell on the New York Stock Exchange. Trading volume was 1 billion shares.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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  • by Anonymous on Mar 14, 2011 at 07:34 AM
    govt mule, We are pulling oil out of the Bakken Formation to the tune of about 458,000 barrels per day. So what is it that you are complaining about?
  • by Anonymous on Mar 14, 2011 at 04:49 AM
    rumor has, we don't have enough reserves for it to actually work. We would have to provide enough oil to last until we get oil pumping from our own wells. Also if we don't allow oil drills to create the wells it will just take longer. Also as long as we do not allow our own companies to drill off our coast, other countries will drill off our coast (in international water), and there won't be any oil left in these areas. So your theory is pretty well busted.
  • by rumor has Location: Mayo on Mar 13, 2011 at 06:15 PM
    I heard a theory that somewhat makes since. It was that America isn't going to tap our big oil reserves in the Dakotas' and Montana until we use up all of the world's oil. We pump the middle east dry, then in 30 years crank up produection here. What do you think? I think our govt. is sneaky enough to do it! I mean, we have people like Rick Scott in office don't we?
  • by Moishe Location: Tallahassee on Mar 13, 2011 at 04:42 PM
    Govt Mule got it right on Ethanol. Forty percent of our corn production goes into Ethanol. The ramification of this is now hitting our food prices. On top of that the government subsidy is costing millions. As soon as OPEC sees that we are serious about developing our own resources their output will increase. Politicians are lucky their compensation is not based on good results.
  • by govt mule Location: Tallahassee on Mar 7, 2011 at 07:53 PM
    We are doomed if America continues to overlook the oil it has not tapped into. They keep preaching we need to reduce our dependence on foreign oil while our very own resources remain buried in North Dakota and Montana’s Bakken Formation. http://www.usgs.gov/newsroom/article.asp?ID=1911 In the meantime they waste our time and money on so called green energy. We have been down the ethanol route in the 80s and apparently didn't learn a thing. Meanwhile we all pay more for meat and get less gas mileage and damage our cars. Where is the savings? We don't use less oil since the result is poorer fuel economy. Corn farmers are the only ones benefiting. The wind and solar farms are also a joke. This stuff is just not a viable energy source. All the investments will eventually be lost and people will get scammed out of their hard earned cash if they get involved.
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