Eni Chief Blasts Libya Sanctions

[jakeXT]

The head of Italian oil giant Eni SpA called for Europe to drop sanctions against Libya, saying it was "shooting itself in the foot" and endangering its energy security by punishing the Gadhafi regime.

Eni Chief Executive Paolo Scaroni's comments come against a background of threats and warnings by Col. Moammar Gadhafi against foreign oil companies, especially those from countries that have backed the opposition rebels and called for a no-fly zone above Libya.

...

Foreign companies such as Eni, which suspended production and evacuated staff when the violence erupted, are keen to resume operations in a country that holds the largest oil reserves in Africa and has long been considered one of the great unexplored frontiers of the global energy industry.

But they face a dilemma. Libya is likely to face an era of deep international isolation, with a new round of sanctions that could affect foreign oil companies. Those from states that called for Col. Gadhafi's ouster, like France and Italy, may be singled out for punishment by the leader and his inner circle.

...

http://online.wsj.com/article/SB10001424052748703899704576204673558982468.html

[dipsydoodle]

1. The other side of the coin

is that Italy will now need , at least for the time being , to source its oil elsewhere which overall will increase demand for oil.

Increased demand in the absense of increased supply = price increase.

Whilst I personally couldn't give a shit about increased oil prices it seems to bother some others here on DU.

Edit to add : I have a feeling that ENI is partly owned by Libya.

[jakeXT]

2. The pressure on Berlusconi must have been very high

I feel betrayed by Europe, especially Berlusconi: Gaddafi

Tripoli: Libyan leader Muammar Gaddafi says he feels betrayed by Europe but is especially dismayed by Italian Prime Minister Silvio Berlusconi with whom he has the closest ties.

http://news.in.msn.com/international/article.aspx?cp-documentid=5030262

Usually Italian politicians end up dead, I can't imagine a statue in his face and the bong bonga affair were enough for him.

Moro's widow later recounted Moro's meeting with U.S. President Nixon's advisor, Henry Kissinger, and an unidentified American intelligence official, who warned him not to pursue the strategy of bringing the Communist Party into his cabinet,<15> telling him "You must abandon your policy of bringing all the political forces in your country into direct collaboration...or you will pay dearly for it." Moro was allegedly so shaken by the comment that he became ill and threatened to quit politics.<16>

But finally Aldo Moro did not quit politics; in the month following the Kissinger/Moro meeting, Aldo Moro was heading to the Italian Parliament for the crucial vote Moro had proposed when Moro was kidnapped and subsequently murdered.<17>http://en.wikipedia.org/wiki/Aldo_Moro

As others have note an increase of oil prices is good for dollar hegemony
http://oilgeopolitics.net/1973_Oil_Shock/1973_oil_shock.html

[dipsydoodle]

3. Its not just the oil company

Libya has substantial ownership of Fiat and Juventus FC aka Juve amongst other companies in Italy- part of the $150 billion Libyan sovereign wealth fund.

Increase of oil prices is good for dollar hegemony ? Oh yes but only while the petrodollar recycling scheme persists. Lose that and the US is royally fucked.