Libya's Political Landscape and Oil Production

Libya's oil production is intricately linked to its complex political landscape, heavily influenced by relationships among key actors such as the national oil company head and the central bank director. Since the fall of Gaddafi in 2011, political instability has resulted in significant fluctuations in oil output, with the industry accounting for approximately 93% of the nation's government revenue. Recent crises, driven by disputes over leadership and control, have led to substantial decreases in production, exemplified by the August 2023 shutdown that resulted in a 63% drop in oil revenues. The lack of a unified government exacerbates these challenges, making negotiations and cooperation critical for stabilizing oil production in the country.