• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 15 hours Shale Oil will it self destruct?
  • 9 mins Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Childish Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 10 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 6 hours Iran Captures British Tanker sailing through Straits of Hormuz
  • 19 hours Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 7 hours Renewables provided only about 4% of total global energy needs in 2018
  • 24 hours Today in Energy
  • 2 days Populist, But Good: Elizabeth Warren Takes Aim at Private-Equity Funds
  • 1 hour Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 2 days Mnuchin Says No Change To U.S. Dollar Policy ‘As of Now’
  • 1 day LA Solar Power/Storage Contract
  • 2 days Why Natural Gas is Natural
  • 10 hours U.S. Administration Moves To End Asylum Protections For Central Americans
Why Oil Tankers In The Middle East Shouldn’t Hire Mercenaries

Why Oil Tankers In The Middle East Shouldn’t Hire Mercenaries

Shipping companies sailing through the…

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
Download on the App Store Get it on Google Play