Putting an end to Nigerian hegemony, Libya now stands as the leading oil producer on the African continent, a spectacular resurgence after a series of crises. A story of resilience and strategic efforts leading to a new energy order.
Turnaround: Libya dethrones Nigeria
After several years of crisis, the dark picture is starting to become clearer for the Libyan oil industry. OPEC, the Organization of the Petroleum Exporting Countries, estimated in a recent report Libya‘s production at 1.24 million barrels of oil per day for March 2024. A figure that dethrones its historic competitor, Nigeria, and confirms Libya as Africa’s leading oil producer.
Libya, African oil Eldorado
Boasting the tenth-largest reservoir of black gold in the world, Libya has always had immense energy potential to exploit. Despite the civil war of 2011 and the geopolitical tumults that followed, which seriously hampered its production, lowering the level to less than a million barrels per day, the country has always had a foot in the African energy scene. The hydrocarbon sector, which represents almost all of the country’s tax revenues, is now in the recovery phase. This is the concrete result of a proactive policy carried out by the Libyan government to once again attract large foreign hydrocarbon companies.
Structural Challenges within the Nigerian Oil Industry
However, if the situation seems to be improving for Libya, it is getting complicated for Nigeria. Structural problems, such as insecurity and corruption, undermine the stability of oil production. Production fell by a little more than 5% in March, according to OPEC. This decline, combined with the increase in Libyan production, has therefore allowed Libya to take center stage as the leading African producer.
A remarkable renaissance
It is undeniable that Libya was able to take advantage of these favorable circumstances. Major international oil companies such as the Italian ENI and the British BP have returned to Libya, followed closely by Sonatrach, the Algerian national company. This is how, despite all the obstacles and challenges encountered, Libya managed to rise to the top of African oil production, a remarkable achievement.
This turning point in the geopolitics of oil is an opportunity for all of us to reflect on Africa’s still untapped potential in terms of energy resources. And you, what do you think about the prospects for the African oil industry?
