Libya Lose Billions in Recent Oil Strikes

Two years ago, In the midst of the Arab Spring, the Libyan people united to remove their leader, Colonel Gadaffi, from power after ruling the African country for more than 40 years. The controversial leader was ousted amidst accusations that he was an authoritarian dictator who abused the rights of his people. Now, the new government is facing it's biggest challenge yet.

Last year, Ali Zeidan, previously a human rights lawyer, was elected by the Libyan Congress to the position of Prime Minister. Following the overwhelming response to welcome democracy as well as the Gadaffi manhunt, it is somewhat surprising that the country is struggling to find it's feet, as chaos looms ominously overhead. 

With over a million barrels produced per day, oil is Libya's greatest export particularly as the highly valued natural resource is of an unusually high quality. Oil production in Libya is the highest in the whole of Africa and the fifth largest in the entire world. Therefore, the value and importance of this commodity is quite apparent, particularly in relation to the country's economy. However, output in the country has fallen to just 10% as workers, along with armed militia, have gone on strike leaving the government with just two working oil ports, forcing the country to import oil to keep electrical power stations open. 

There appears to be a number of reasons for the strikes, however, the primary causes seem to revolve around dissatisfaction with the government's distribution of wealth, with other workers demanding higher pay and new management. The pay and management seem reasonable enough requests to discuss, perhaps the formation of a trade union could prevent future

ongoing strikes that threaten the very peace of the country. 

In 2007, British oil giant BP re-entered the country, however since the civil disruption following the Arab Spring, plans to drill for oil off the Libyan coast have repeatedly been put on hold. With lost revenue from the strikes estimated in the billions, and BP the last oil giant left in the country following Shell's exit last year, it's unsurprising that the worried government have threatened military action against the protesters. Denouncing them for "a national crime that is tantamount to treason, because you are cutting the income to the Libyans." The Prime Minister continued "The government has been patient... To preserve national unity we saw fit to use all peaceful means to resolve this issue but at some point we may  reach a point in which the state should exercise it's role seriously to stop this." 

The Government, it seems, has been backed into a corner, as experts and protesters alike warn that a military intervention could break down the already tentative peace in the country sending Libya spiralling into a fractious state with people fighting over oil. Indeed, one militia leader said an act of aggression like that detailed by the Prime Minister would be a "declaration of war", something which neither the government nor the people want.

It is a tricky situation for Libya, the government obviously need to reopen the oil ports so they can produce at maximum capacity and get money into the country once again, however they need to react to the people's protest in a reasonable manner. Ignoring the demands of the people entirely, instead of negotiating, is a dangerous game and a mistake that too many leaders in the Middle East have made in the last few years. This is a major test for the new government and how they react will be important not just for Libya but for all other countries involved in the Arab Spring. Reacting with care will mean the government will not just save Libya from civil war, but also create faith in their new democracy.

Lora.

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