For Libya, the Hormuz crisis can be a trap or an opportunity
Libyan hydrocarbons are increasingly sought after. To take full advantage, the country needs a new economic strategy.
Amid the worsening global energy crisis triggered by the US-Israel war on Iran, European countries, desperate for alternative energy supplies, trade routes and partnerships, have looked across the Mediterranean for solutions.
As a result, governments across North Africa have started to reassess their strategic value. Algeria is in an especially strong position as an established gas supplier, while Egypt can offer infrastructure, refining capacity and access through the Suez Canal.
Libya has also seen its strategic value increase. It has around 48 billion barrels of proven oil reserves, the largest in Africa, and produces 1.5 million barrels of oil per day. It also has substantial natural gas reserves.
That is why when taking advantage of heightened demand for energy, it is crucial that Libya uses the proceeds to transform its energy system.