LONDON, Feb 24 (Reuters) - Oil production in Libya is expected to shut down completely and could be lost for a prolonged period of time, Bank of America Merrill Lynch said on Thursday.
'We expect Libyan production to be shut down completely and we might lose sweet crudes from Libya for a prolonged period of time,' Bank of America Merrill Lynch analyst Sabine Schels told Reuters.
Schels said that the world faced the prospect of real supply shock in which the loss of 1.6 million barrels per day of sweet oil could potentially trigger a steep rise in prices and force a sharp reduction in demand to balance the system.
'Some of the supply can be replaced with Saudi light crude and some from SPR, but if the disruption is prolonged, we will need demand to drop to balance the system,' Schels said.
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2 comments:
This is the exact reason why we need to produce our own oil until such time that alternative fuel sources are developed and are affordable to the masses. My short list of things to do are (and I apologize to the environmentalists who will undoubtedly take offense or have an opposite opinion):
-- I think that if we start by building new nuclear power plants that we could shutdown the oil-fired plants and divert that oil to the transportation industry.
-- The hybrid cars that I've been seeing lately look promising to those of us who are mostly city drivers. These vehicles could prove worthy in the short-term especially if the technology improves. The drawback to these types of vehicles is that they probably require specialized training by the mechanic so long gone will be the days of the shade tree mechanic.
-- We need to use every resource that will have for oil in our country, whether it is off-shore or in the mid-west it MUST BE DONE! If a squirrel, caribou or some unknown insect has to be displace then that is what will have to happen. Nature has a tendency to adapt.
-- The government has to cut back on the entitlement programs. The money saved here could go to energy research or maybe just be used to pay off the current debt to China. This is intertwined with oil since part of the money being spent on higher oil is in competition with China's need for oil.
These are just a few thoughts and I'm sure that I will be criticized for what I say but hey, that is to be expected.
I find it a true shame that we let our country get into this shape -- we need energy independence and we need it now but unfortunately being that we are a country that actually "plays by the rules", our leaders will not go ahead and do what is best for the country's energy woes.
My 2 cents. Thanks for reading.
In response to "not quite"....I agree with you 100%. The reason our leaders don't work in the best interest of our country, is because BIG OIL and the other monopolies, HEAVLY influence the voting in Congress.For some strange reason, I keep recalling...money talks, @#$% walks.
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