Strategic Oil Reserve and the “desultory” Libyan Conflict- Energizing Libyan Entrepreneurs

There was a BBC correspondent who came up with the word “desultory” to describe the Libyan conflict. Today there were visuals from both the rebel and Gaddafi camps that sort of supported this brilliant one word “desultory” description. Should US  put out the 60 days Strategic Oil Reserve for something that might last a few months -maybe years without active intervention ? Intervention seems unlikely with US,NATO forces stretched so thin elsewhere and the reluctance of Libyans to involve other countries. So the US  should probably  hold on to its strategic oil reserve.

An innovative possibility that the oil industry might find worthwhile to explore,  is to encourage Libyan entrepreneurs already involved in the supply chain, to take more leadership roles in trying to separate the “desultory” conflict from oil trade. Perhaps some sections on both sides of the conflict will agree, given that Libya controls only 2% of oil production which while damaging for the world economy, is not a show stopper for oil consumers  worldwide  who’ll start living with higher prices and no oil from Libya.There are no winners here but at least the Libyan people and their oil customers will suffer a little less.

That some of this is happening is the encouraging report from Cairo about a tanker leaving Tobruk in Eastern Libya for China last Monday.

About StratoServe.