Saifaddin Galal
Research Expert North Africa
Oil and natural gas industry in Libya - statistics & facts
The oil and natural gas industry is a significant economic contributor in Libya. The country developed a strong oil sector after major oil discoveries in the late 1950s. In recent years, despite the fluctuating oil production due to the wars and COVID-19, Libya’s economy has remained heavily reliant on the oil industry, which is the main source of income in the country. In 2020, oil revenue accounted for over 50 percent of the Libyan GDP, the largest share in Africa. Although to a lesser extent, Libya’s economy also profits from the gas sector, as the country is the fourth natural gas producer on the African continent. In addition, oil and gas resources largely contribute to Libya's export trade. Mineral fuels, including oil and natural gas, were the leading products exported in 2021, representing over 95 percent of the exports.
Substantial oil production
Libya is among the main players in Africa’s oil industry. As of 2021, Libya’s proved crude oil reserves amounted to 48.4 billion barrels, the largest on the continent. However, crude oil production in the country fluctuated considerably in recent years. The output declined drastically during the civil wars, in 2011 and from 2014 to 2016. After strong growth, the production of crude oil fell again due to the COVID-19 crisis to around 390,000 barrels per day in 2020, down from over one million barrels per day in the previous year. Libya’s oil refineries had a total capacity of 634,000 barrels per day in 2021, mainly concentrated in the Ras Lanuf refinery. This is operated by the state-owned National Oil Corporation (NOC), the largest oil company in the country. In 2021, Libya was one of Africa’s leading crude oil exporters after Nigeria, with an export volume of 1.1 million barrels per day. In 2021, Libya accounted for eight percent of the crude oil supply to the European Union.Moderate natural gas output
Libya is a modest natural gas producer. The country’s natural gas reserves amounted to around 50 trillion cubic feet in 2021. In Africa, gas reserves were more prevalent in Nigeria, Algeria, Mozambique, and Egypt. Similar to the oil production trend, the natural gas output sank due to the impact of COVID-19 on the global oil and gas industry, declining from around 33 billion cubic meters in 2019 to 26 billion cubic meters in 2020. In 2021, the country exported roughly three billion cubic meters of natural gas. Libya trades natural gas in a gaseous state via the Greenstream pipeline from Mellitah to Italy, which is the only gas pipeline that originates in Libya. Additionally, the country also retains part of the production for energy purposes. In 2021, primary energy production from natural gas in Libya rose to 0.54 quadrillion British thermal units, compared to 0.48 quadrillion British thermal units in the previous year. Gas also represents the main source of electricity production in the country.
