Al Jazeera analysis indicates that Libyan hydrocarbons are increasingly favored by European countries as the global energy crisis intensifies. The country possesses Africa's largest proven oil reserves (approximately 48 billion barrels), produces 1.5 million barrels of oil daily, and holds substantial natural gas reserves. However, Libya faces structural challenges such as inefficient domestic energy systems, political fragmentation, and the burden of subsidies. The article emphasizes that Libya should leverage the revenue from the Strait of Hormuz crisis to drive energy system transformation, including capturing flared gas, modernizing electricity production, expanding domestic refining capacity, reforming subsidies, and investing in renewable energy. In February this year, Libya signed its first major oil and gas licensing agreements since 2007 with companies like Chevron and Eni. In January, it signed an energy cooperation agreement with Egypt to discuss a $1 billion, 800-kilometer oil pipeline project, and earlier this month, it expanded cooperation with Tunisia.