While analysts agree that global oil and gas supplies are hardly at risk, as Libya accounts for only 2 percent of world oil output, countries like Italy, France, and Spain relied on Libya in 2010 for as much as 22 percent, 16 percent, and 13 percent of total crude consumption, respectively ”“ a supply not easily replaced on short notice. Europe receives over 85 percent of Libya’s crude exports.
And that’s causing energy planners to reassess the wisdom of counting on North Africa, where southern European governments have invested significantly to decrease dependence on supplies from Russia and Iran, even if Libya’s civil unrest ends with a peaceful resignation of Qadaffi.
“Europe has to choose between becoming more dependent on Russia or the Middle East, or both,” says Herman Franssen, senior associate at the Center for Strategic and International Studies and former chief economist of the International Energy Agency.
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(CSM) Europe rethinks dependence on Libyan oil
While analysts agree that global oil and gas supplies are hardly at risk, as Libya accounts for only 2 percent of world oil output, countries like Italy, France, and Spain relied on Libya in 2010 for as much as 22 percent, 16 percent, and 13 percent of total crude consumption, respectively ”“ a supply not easily replaced on short notice. Europe receives over 85 percent of Libya’s crude exports.
And that’s causing energy planners to reassess the wisdom of counting on North Africa, where southern European governments have invested significantly to decrease dependence on supplies from Russia and Iran, even if Libya’s civil unrest ends with a peaceful resignation of Qadaffi.
“Europe has to choose between becoming more dependent on Russia or the Middle East, or both,” says Herman Franssen, senior associate at the Center for Strategic and International Studies and former chief economist of the International Energy Agency.
Read it all.