ABSTRACT
Libya is in the process of very rapid transition from a subsidized subsistence economy into the oil age. In 1961, 850,000 tons of oil were produced and exported—mostly in the second half of the year. The total exports of 1962 amounted to 9·25 million tons. In 1963, production increased to 21 million tons. Experts point out that the Libyan oil differs in quality from that of the Middle East and that it is particularly suitable for the production of high octane petrol, but less for diesel oil. Many observers ask themselves what Libya intends to do when the oil money begins to pour into the country in really large quantities. This money, if it were correctly used, would enable Libya to achieve economic independence and develop into a modern state. The state is bound to be faced with considerable difficulties as larger sums flow into the country through the production of oil.
