To What Extent Libya is Considered a Highly Attractive Oil Area?

Abstract

Despite there are many energy sources including coal, and nuclear power, crude oil still a primary and powerful source of energy in addition to a raw item in the majority manufacturing sector. There are few regions similar to North Africa and few energy powers like Libya, which are being so deeply affected by changes in the geopolitics of energy that they are having a profound impact on the balances of power between suppliers and consumer countries (Cobo, 2022,1). This paper attempted to answer few questions, the main one is that to what extent Libya is considered as a highly attractive oil area to the EU? Geopolitical worries or warfare in a number of countries continue to be a significant risk to oil supplies. Many factors affected oil market over last decades including wars. In 2011, Libya experienced civil war. The violence affected oil and gas locations directly. Political instability is a major challenge for the government which it could not be solved properly. Foreign investors feel insecure while investing in the Libya due to this political instability and security issues. Political stability and economic growth are directly with each other and oil and gas sector carries equal importance of each factor (Ibrahim et al.,2013,205). More recently, war in Ukraine would affect oil and Gas production and their prices. Because of its location, Europe countries are looking to Libya as an important alternative oil supplier to Russia.