PARIS, Oct. 21 (UPI) -- The death of Moammar Gadhafi is a historic moment for the country but it remains to be seen how quick Libya's oil economy can rebound, an expert says.
Gadhafi, who was Libya's leader for more than 40 years, was killed Thursday in his hometown of Sirte.
The interim National Transitional Council was recognized as the sole governmental authority in the country after rebel forces seized Tripoli in August. As a result, international energy companies like ENI have slowly restarted oil production in one of Africa's key energy states.
David Fyfe, head of the oil markets division at the International Energy Agency, was quoted by U.S. World and News Report as saying that Gadhafi's death could lead to a more stable investment environment in Libya.
"However, many logistical, operational and security-related challenges remain in that country, so we are not changing our underlying assumptions on Libyan production recovery for now," he said.
The IEA states that oil made up nearly all of Libya's export earnings in 2010. Oil production since the war began in March, however, was down to around 350,000 barrels per day, far shy of its estimated pre-war output of 1.3 million bpd.
Though most of the country's oil fields were sparred in the conflict, political divisions within the NTC and questions about the status of energy infrastructure raise questions about the country's future.
