Libya is on the brink of an oil-starved financial crisis

BY newsdesk  September 12, 2013 at 2:40 PM EDT


An oil refinery west of Tripoli, before the strikes

Photo: MARCO LONGARI/AFP/Getty Images

Since July, Libyan oil fields and terminals have been shut down by striking workers upset over low pay and corruption, NPR reports. Before the strikes, Libya was capable of producing 1.5 million barrels of oil per day. But now, most production is coming from off-shore platforms, unreachable by the labor protests. As a result, the the nation is only producing about 150,000 barrels of oil per day and losing out on $130 million in daily revenues. The Libyan government’s military is paid with the funds generated by oil revenues, so the nation is lacking a security force to take control. Oil revenue is 60% of Libya’s GDP.