In Libya, One Region’s Stability Is Key to Oil Supply

After a steep decline in oil production during the uprising that ended with the fall of Muammar Qaddafi’s long-standing regime at this time last year, Libya has restored its output to near pre-war levels. Now, it must address political conflicts that threaten this recovery, particularly in the eastern Cyrenaica region (map), which is home to four-fifths of Libya’s oil and had been politically marginalized under Qaddafi’s rule.

Sitting on Africa’s largest proven oil reserves (47 billion barrels), Libya is greatly valued in the European market, both for its high-quality, low-sulphur oil and for its proximity to Europe.  Close to 80 percent of that oil lies in Cyrenaica’s eastern Sirte basin.

Discontent in Cyrenaica over allocation of seats in

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