Libyan Oilfields Shut Down | Weekly News Update

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Oil Rises as Libyan Oilfields Shut Down

Libya’s national oil company declared a force majeure on their Sharara and El Feel oil fields on Monday.  The two major oilfields in southwest Libya began shutting down on Sunday after forces loyal to Khalifa Haftar closed a pipeline, potentially cutting national output to a fraction of its normal level.  The projected outages are roughly 700,000 barrels per day.  The outages are expected to be short-lived unless conflict escalates further in the coming days.

U.S. energy markets are closed on Monday for Martin Luther King Jr Day, but Brent crude oil modestly rose on the news as the time at this was written.  The country has dealt with civil conflict continuously for years, ultimately reducing the price risk as the market most likely priced in any further outages from the country.

 

Union Pacific CEO: PSR is dead. Long live PSR

Union Pacific Railway (UP) CEO, Lance Fritz, believes that Precision Scheduled Railroading (PSR) is an outdated phrase.  The company has been implementing its PSR strategy since October 2018 and believes the transition is complete.  Fritz has been living by the late Hunter Harrison—”Don’t do work you don’t have to.”  The strategy allows the company to move railcars as deep and as quickly as they can by having one primary service instead of a boutique service.  Fritz considers the transition a success, because they may not run as many lanes as before PSR, but their service is “fundamentally different today.”

 

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Reuters: Oil rises as Libyan oilfields shut down

Oil prices rose to their highest in more than week on Monday after two large crude production bases in Libya began shutting down amid a military blockade, risking reducing crude flows from the OPEC member to a trickle.

 

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Supply Chain Dive: Union Pacific CEO: PSR is dead. Long live PSR

Precision-scheduled railroading (PSR) is an outdated phrase, Union Pacific Railroad CEO Lance Fritz ​told the Midwest Association of Rail Shippers’ Winter Meeting in Lombard, Illinois, Wednesday.

 

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This weekly publication is designed to highlight relevant industry news to provide professionals in the transportation, supply chain, and energy sectors with up-to-date information in a rapidly changing marketplace. This update is purely a compilation of industry news and as such, does not necessarily reflect the opinion of Breakthrough. We do not warrant or guarantee accuracy or completeness of information. For additional information, please contact us at info@breakthroughfuel.com.

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