• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 20 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 7 hours Starvation, horror in Venezuela
  • 1 day Pakistan: "Heart" Of Terrorism and Global Threat
  • 15 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 15 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Venezuela set to raise gasoline prices to international levels.
  • 1 day Are Trump's steel tariffs working? Seems they are!
  • 13 mins Corporations Are Buying More Renewables Than Ever
  • 2 days WTI @ 69.33 headed for $70s - $80s end of August
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 8 hours China goes against US natural gas
  • 9 hours Why hydrogen economics does not work
Trade War May Push China To Russian Energy

Trade War May Push China To Russian Energy

As trade war tensions heat…

Are Environmentalist Stunts Obfuscating A Serious Nuclear Debate?

Are Environmentalist Stunts Obfuscating A Serious Nuclear Debate?

Environmentalist actions in France may…

Despite Conflict, Yemen Tries To Win International Oil Firms Back

Oil terminal on fire

There have been ‘positive indicators’ that international oil companies could resume activities and investments in Yemen, news outlet The New Arab reports, quoting a representative of the country’s exiled Saudi-backed government.

According to the Minister of Oil and Minerals, Seif Sharif, international oil firms were encouraged by signs of stability in Yemen’s oil provinces in Hadramout, Marib, and Shabwa in particular. These regions have shown that they have potentially large oil, gas and minerals reserves, The New Arab quoted Sharif as saying.

Yemen had proved reserves of oil totaling 3 billion barrels as of January 2014. That same year Yemen’s oil production averaged 127,000 bpd. However, the civil war that’s been raging for almost two years has forced nearly all production at Yemen’s oil and gas fields to be shut in, and oil majors have been shuttering projects there as hostilities and port blockades hampered security, production and exports.

In Yemen’s conflict, clashes between Shia and Sunni tribal formations heated up with the entrance on the scene of Iran – backing the Shia Houthi rebels – and Saudi Arabia – backing the elected pro-Saudi government now in exile – and evolved into an all-out proxy war between Saudi Arabia and Iran.

Related: How Tillerson Could Jeopardize Geopolitics In Iraq

Last week, media reports said that Yemen may export later in January its first crude oil shipment since August, according to fixture list data showing that Glencore had booked an oil tanker to dock in Yemen on January 15.

Apart from the raging war that has led to humanitarian and fuel shortage crises, Yemen’s purely oil-connected problem is that its existing fields are close to maturity and in the absence of new oil discoveries, its crude reserves would be exhausted in less than a decade.

Although Yemen is not a major oil producer, especially compared to other Middle Eastern countries, its geographical location is strategic as it sits on the Bab el-Mandab strait, a key chokepoint in international shipping.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News