The study was conducted to analyze the importance of oil and gas sector in Libya. This study also describes the current scenario and future trends in oil and gas sector of the country. The paper describes the benefits of oil and gas sector in the economy of Libya. Moreover, the discussion section explains the situation of the current scenario of oil and gas sector in the country. Overview of Oil and gas sector is separately described in this section with the help of variety of charts. Future trends are also part of this section which explains the future plans for this sector by the government of Libya. These plans include with future forecasting of production in oil and gas sector. The production rate of oil and gas sector in the last year is explained in this section. Moreover, opportunities and challenges of oil and gas sector are also illustrated in this paper. It is analyzed that oil and gas is facing many challenges such as political instability, transparency in business practices, security issues and practical logistic issues. The government of Libya must solve these issues in order to sustain the development of economy. This sector also contains some major opportunities such as development of economy through better infrastructure, revamp its global strategies to attract global oil and gas companies, to explore new reserves in the country and use new techniques for exploration and production of oil and gas. The government of Libya must work out on these opportunities for enhancing the economic development in the country.