Libya Industry Sectors
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As of 2010, agriculture constituted 4.2% of the Libyan economy, 60.7% was industrial, and 35.1% was services.
As of 2010, agriculture constituted 4.2% of the Libyan economy, 60.7% was industrial, and 35.1% was services.
Libya’s economy is dependent on revenues from crude oil, refined petroleum products, natural gas and chemicals which makes up all export earnings and over half Libya’s GDP. In 2010 petroleum exports totaled $33.97 billion, and account for 95 percent of export revenue earnings and 50 percent of GDP.
Libya is an OPEC member and holds the largest proven oil reserves in Africa holding 43.66 billion barrels according to 2010 estimates. 80 percent of these reserves are located in the Sirte Basin, responsible for 90 percent of Libyan oil output. With a population of only 6.459 million, oil revenues have given Libya the highest nominal per capita GDP in Africa. In 2010 alone, Libyan GDP grew 10.637 percent.
With the uprising, civil war, sanctions and UN-backed bombings stopping two-thirds of oil production, pretty much all its exports and most other trade, we can expect a sharp drop in 2011 GDP.
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Libyan Petroleum Industry
In Libya, the petroleum industry has dominated its economy since the 1960s and has developed significantly since. Libyan crude oil has a higher wax content, as well as being lighter and easier to handle then other crudes. It has a low sulfur content making it less of a pollutant, and therefore increases demand from European markets. Libya is also located close to Europe, and is linked to Italy with the Greenstream Natural Gas Pipeline, making it convenient to export to the European market.
As of 2010, Italy accounted for 38 percent of exports; Germany 12 percent, France 7.4 percent, Spain 6.9 percent, US 6.4 percent and Switzerland 4.6 percent.
Libyan oil exports are affected by regional strife, however. It was affected in 1967 during the war, and again during the Libya crisis in 2011 with control of the oil facilities being key to both to Gaddafi loyalists and rebels.
Libya is estimated to have lost two thirds of its oil output while fighting between government and rebel forces and international sanctions have halted all oil exports from Africa’s third-largest producer.
Offshore exploration of oil began in the late 1970s and is estimated to contain 7 billion barrels of oil.
When oil prices dipped in the early 80s, Libya’s GDP growth slowed to 2.6 percent. In 2001, high oil prices boosted GDP growth to 4.6 percent in 2004, to 10.6 percent in 2010. Despite efforts to diversify the Libyan economy petroleum continues to drive Libya’s economy to date.
Libya has five domestic refineries with a total crude distillation capacity of 378,000 bpd. The industry is controlled by the National Oil Company, which is state-owned and produces over 50 per cent of oil output. Foreign oil majors are also involved in the country.
The IEA said Libya last year imported about 80,000 barrels per day of refined oil products and exported about 100,000 barrels per day of oil to OECD countries, mostly in Europe and in particular Italy.
Libyan Gas Industry
Libya also has a smaller gas industry. While it has the 9th largest oil reserves, it has the world’s 23rd largest proven gas reserves, at 1.539 trillion cu m (2010 estimate). It produces 15.9 billion cu m of natural gas, and exports 10.4 billion cu m of that, much of it through the Greenstream pipe to Italy, where Libya supplies 10% of national gas needs.
Libyan Iron-Ore Mining Opportunities
Libya also has iron-ore deposits in Wadi ash Shati, said to be one of the largest in the world that covers 80 square kilometers. However, a 1980 report deemed none of it to be high-grade ore. Estimates suggest iron-content ore in the deposits to total between 700 million to 2 billion tons. However, exploration of the deposits are not profitable due to poor infrastructure and investment that is required to extract the mineral.
Other scattered iron ore deposits in northwestern Tripolitania and northern Fezzan were apparently insufficient to be commercially exploitable under current conditions. Manganese was known to occur in northwestern Tripolitania and, in combination with the iron-ore deposits, at several locations in the Wadi ash Shati. Known deposits, however, were not considered commercially exploitable.
