"The relationship between the United States and Libya has been strained and hostile for much of the last 35 years, but has recently shown signs of improvement. Following the Libyan governments December 2003 decision to eliminate its weapons of mass destruction and long range missile programs, a number of bilateral diplomatic exchanges have taken place, and the termination of U.S. economic sanctions on Libya has paved the way for a renewal of investment by U.S. oil, gas, and energy service firms in Libya's under-capitalized energy sector. Several visits to Libya by Bush Administration officials and Members of Congress since 2004 have raised expectations of a formal reestablishment of normal relations between the U.S. and Libya in the near future, including the removal of the last remaining sanctions associated with Libyas designation as a state sponsor of terrorism."
CRS Report for Congress, RL33142
United states Department of State: http://fpc.state.gov/