Part Two: After Gaddafi, Libya's Oil Industry Faces Political Challenges
by: Andrew Schneider, August 23, 2011 4:08:00 am
Libya will face some tough political challenges in order to get production back to prewar levels of nearly a million barrels a day. Rice University’s Amy Myers Jaffe says one of the biggest hurdles will be deciding how to fairly divide the country’s oil wealth.
“The revenue split under Gaddafi’s Libya was, you know, a lot of the money went to Gaddafi and his family and the tribes that supported them. Presumably, you want to have a more national system now, and, you know, that takes some time to work out. And while you’re working that out, you know, you have an interim period where you’re not having massive investments coming in.”
Those investments will be critical if Libya is to repair the war damage to the country’s oil infrastructure.