Finally, Iraq war will increase supply of oil... from Lybia

Houston Chronicle:

Executives at ConocoPhillips and Marathon Oil are doing their celebrating early this year.

When the clock strikes midnight in Houston on New Year's Eve, half a world away in Libya the companies will be getting down to business, taking over the Waha Field's oil production.

The Houston-based energy outfits, along with New York-based Amerada Hess, announced a deal with the Libyan National Oil Corp. on Thursday that will allow them to return to the desert oil patch they had to abandon in 1986.

It has been almost 20 years since the companies, which had operated as the Oasis Group, left because of a U.S. trade embargo imposed after the United States accused Libya of backing terrorist groups.

The agreement on terms for the old Libyan concessions marks a highly anticipated return for the former Oasis members to the North African nation, which is a member of the Organization of the Petroleum Exporting Countries.

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Libyan oil production has taken a nose dive since its heyday, dropping from more than 3 million barrels a day in 1970 to 1.5 million barrels in 2004.

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It was not possible until Lybia gave up its WMD after it saw how quickly Iraq was defeated in 2003. The anti war lobby ignores the better relations with Lybia that have resulted from the war in Iraq.