• Oil from Libya: Mission Accomplished

    October 21, 2011

    Tags: , ,
    Posted in: Democracy, Other Ideas

    With oil from Iraq still flowing more like Grandpa with prostrate trouble, it is good to learn that freedom in Libya is oilier than we thought.

    Associated Press reports the killing of Moammar Gadhafi reduces the chance that violence will get in the way as Libya cranks up production again. The type of crude produced by Libya, known as light, sweet crude, is rare. It is especially valuable because it is easier for refineries to convert into diesel and gasoline. Many refineries can’t switch easily to processing other varieties of crude.

    The price of oil jumped 35 percent between Feb. 15, when protests started in Benghazi, and April 29, when oil hit almost $114 per barrel, the highest since 2008. Gasoline prices in the U.S. rose from $3.12 before the fighting to a three-year high of $3.98 on May 5.

    By Wednesday, oil had returned to its price before Libya’s uprising began. It fell 81 cents Thursday to $85.30 a barrel in New York trading. The average price of a gallon of gas in the U.S. was unchanged at $3.47.

    (Note to the easily offended: do not use Google images for the search term “gusher” with Safe Search turned off)




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