Resumption of oil exports: Will Yemen recover its economic lifeline?
Summary
Yemen’s government has announced it will restart oil exports on July 20 after stopping them in late 2022. The government hopes the money from oil sales will help pay salaries and improve services, but security challenges and damaged infrastructure make resuming exports difficult.Key Facts
- Yemen stopped oil exports in late 2022 and plans to restart them on July 20, 2024.
- Oil revenues are important for Yemen’s economy, especially for paying salaries and improving services.
- Yemen has about 3 billion barrels of proven oil reserves mainly in Masila, Marib, and Shabwa areas.
- Oil production has dropped from 439,000 barrels per day (bpd) around 2000 to about 19,000 bpd in 2024.
- Most oil produced recently is used domestically, with only 7,000 to 10,000 bpd kept for local use in 2023-24.
- The Yemeni government expects to produce about 60,000 bpd initially after exports resume.
- Local consumption of oil is around 20,000 bpd, so exports might reach roughly 40,000 bpd.
- Security, repair of pipelines, and restoring confidence of shipping and insurance companies are needed for stable exports.
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