The Impact of the Political Conflict on the Oil and Gas Industry in Yemen

الملخص

Yemen's oil industry faces severe challenges due to ongoing conflict, drastically reduced production, and export blockades, limiting its economic potential. The study aims to assess Yemen's oil sector amid war disruptions, revenue losses, and recovery barriers since 2015, including the sedimentary basins in Yemen, the productive, exploratory, and open oil sectors in Yemen, the most important export ports, oil and gas pipelines, and internal and external operating oil companies, along with development prospects.

Analysis relies on secondary data from industry reports and production statistics spanning 1984–2024, including basin outputs from Masila, Marib, and Shabwa, a non-governmental organization report, government reports, ministry of oil and minerals reports, statistical bulletins, and oil and gas company reports. 

Production plummeted due to Houthi attacks on export facilities, with current levels at 7,000–10,000 bpd, all refined locally by firms like Petro Masila. Reserves in major blocks face 70–75% depletion by 2030, with minimal new discoveries; Yemen risks becoming a net fuel importer soon. Without comprehensive peace, foreign investment (e.g., LNG restart) remains stalled, prolonging fiscal crises and hindering diversification.