Editing Economy of Libya (section)

==Oil sector==
{{see also|Energy in Libya}}
[[File:Oil production Libya.svg|thumb|Development of oil production in Libya]]
Libya is an [[OPEC]] member and holds the largest [[proven oil reserves]] in Africa (followed by Nigeria and Algeria), {{convert|41.5|Goilbbl|m3|abbr=on}} as of January 2007, up from {{convert|39.1|Goilbbl|m3|abbr=on}} in 2006. About 80% of Libya's proven oil reserves are located in the [[Sirte Basin]], which is responsible for 90% of the country's oil output.<ref>Oil and Gas Journal, 2007</ref> The state-owned [[National Oil Corporation]] (NOC) dominates Libya's oil industry, along with smaller subsidiaries, which combined account for around 50% of the country's oil output. Among NOC's subsidiaries, the largest oil producer is the [[Waha Oil Company]] (WOC), followed by the [[Arabian Gulf Oil Company|Agoco]], Zueitina Oil Company (ZOC), and [[Sirte Oil Company]] (SOC). Oil resources, which account for approximately 95% of export earnings, 75% of government receipts, and over 50% of GDP. Oil revenues constitute the principal foreign exchange source. Reflecting the heritage of the command economy, three-quarters of employment is in the public sector, and private investment remains small at around 2% of GDP.<ref name="World Bank 2006">World Bank 2006</ref>
[[File:Map-of-countries-by-proven-oil-reserves-(in-millions-of-barrels)---2017---US-EIA---Jo-Di-graphics.jpg|thumb|upright=1.05|A map of world [[oil reserves]] according to U.S. EIA, 2017]]
Falling world oil prices in the early 1980s and economic sanctions caused a serious decline in economic activity, eventually leading to a slow private sector rehabilitation. At 2.6% per year on average, [[real GDP]] growth was modest and volatile during the 1990s. Libya's GDP grew in 2001 due to high oil prices, the end of a long cyclical drought, and increased foreign direct investment following the suspension of UN sanctions in 1999. Real GDP growth has been boosted by high oil revenues, reaching 4.6% in 2004 and 3.5% in 2005. Despite efforts to diversify the economy and encourage private sector participation, extensive controls of prices, credit, trade, and foreign exchange constrain growth.

Although UN sanctions were suspended in 1999, foreign investment in the Libyan gas and oil sectors were severely curtailed due to the U.S. [[Iran and Libya Sanctions Act]] (ILSA), which capped the amount foreign companies can invest in Libya yearly at $20 million (lowered from $40 million in 2001). As of May 2006, the U.S. has removed Libya from its list of states that sponsor terrorism and has normalised ties and removed sanctions. This clears the road for U.S. oil companies to exploit Libyan oil and is expected to have a positive impact on the Libyan economy. [https://archive.today/20120722024230/http://www.channelone.com/news/2006/05/16/ap_libya/]

The NOC hopes to raise oil production from 1.80 million bpd in 2006 to 2 million bpd by 2008. FDI into the oil sector is likely, which is attractive due to its low cost of [[Petroleum extraction|oil recovery]], high oil quality, and proximity to European markets.<ref>International Crude Oil Market Handbook</ref> Most Libyan oil is sold on a term basis, including to the country's [[Oilinvest]] marketing network in Europe; to companies like [[Agip]], [[OMV]], [[Repsol YPF]], Tupras, CEPSA, and Total; and small volumes to [[Economy of Asia|Asian]] and [[Economy of South Africa|South African]] companies.<ref>EIA 2007</ref>

{| class="wikitable"
! Statistic !! Amount
|- bgcolor="ffffff" align="right"
| align="left" | Proven Oil Reserves (2007E) || {{convert|41.5|Goilbbl|abbr=on}}
|- bgcolor="f1f5fa" align="right"
| align="left" | Oil Production (2006E) || {{convert|1.8|Moilbbl/d}} (95% crude)
|- bgcolor="ffffff" align="right"
| align="left" | Oil Consumption (2006E) || {{convert|284000|oilbbl/d|m3/d}}
|- bgcolor="f1f5fa" align="right"
| align="left" | Net Oil Exports (2006E) || {{convert|1.5|Moilbbl/d}}
|- bgcolor="ffffff" align="right"
| align="left" | Crude Oil Distillation Capacity (2006E) || {{convert|378|koilbbl/d|abbr=on}}
|- bgcolor="f1f5fa" align="right"
| align="left" | Proven Natural Gas Reserves (2007E) || {{convert|52.7|Tcuft|m3|abbr=on}}
|- bgcolor="ffffff" align="right"
| align="left" | Natural Gas Production (2006E) || {{convert|3999|Gcuft|m3|abbr=on}}
|- bgcolor="f1f5fa" align="right"
| align="left" | Natural Gas consumption (2005E) || {{convert|206|Gcuft|m3|abbr=on}}
|}

<small>Notes:<br>
1. Energy Information Administration (2007)</small>

===Field Development and Exploration===
{{further|Oil reserves in Libya}}
[[File:Libya location map-oil & gas 2011-en.svg|thumb|350px|Oil is Libya's major resource.]]
In November 2005, [[Repsol YPF]] discovered a significant oil deposit of light, sweet crude in the [[Murzuq Basin]]. Industry experts believe the discovery to be one of the biggest made in Libya for several years. Repsol YPF is joined by a consortium of partners including OMV, Total and [[Norsk Hydro]]. Also located in Murzuq Basin is Eni's [[Elephant field]]. In October 1997, a consortium led by British company [[Lasmo]], along with Eni and a group of five South Korean companies, announced that it had discovered large recoverable crude reserves about {{convert|800|km|mi}} south of Tripoli.<ref>{{cite web |url=http://www.libya-businessnews.com/2013/10/22/omvs-1st-oil-find-in-libya-since-revolution/ |title=OMV's 1st Oil Find in Libya since Revolution |author=<!--Staff writer(s); no by-line.--> |date=22 October 2013 |website=libya-businessnews.com/ |publisher=Libya Business News. |access-date=4 September 2015 |archive-date=8 December 2013 |archive-url=https://web.archive.org/web/20131208082851/http://www.libya-businessnews.com/2013/10/22/omvs-1st-oil-find-in-libya-since-revolution/ |url-status=live }}</ref> Lasmo estimated field production would cost around $1 per barrel. Elephant began production in February 2004.

WOC's Waha fields currently produce around {{convert|350000|oilbbl/d|m3/d|abbr=on}}. In 2005, ConocoPhillips and co-venturers reached an agreement with NOC to return to its operations in Libya and extend the Waha concession 25 years. ConocoPhillips operates the Waha fields with a 16.33% share in the project. NOC has the largest share of the Waha concession, and additional partners include Marathon and [[Amerada Hess]].<ref>EIA 2007 p.3</ref>

===Refining and Downstream===
Libya has five domestic [[refineries]]:
{| class="wikitable"
! Refinery !! Capacity !! Operator
|- bgcolor="f1f5fa" align="right"
| align="left" | Zawia Refinery || 120,000 || ZOC
|- bgcolor="ffffff" align="right"
| align="left" | [[Ras Lanuf Refinery]] || 220,000 ||Ras Lanuf
|- bgcolor="f1f5fa" align="right"
| align="left" | El-Brega Refinery || 10,000 || SOC
|- bgcolor="ffffff" align="right"
| align="left" | Tobruk Refinery || 20,000 || Agoco
|- bgcolor="ffffff" align="right"
| align="left" | Sarir Refinery || 10,000 || Agoco
|}

<small>Notes:<br>
1. Amounts in barrels per day.</small>