Yemen crude drought may prompt military action

Government threat to tribal leaders if export pipeline not repaired

The government has been forced to import all it's oil from Saudi Arabia, drawing further criticism. GETTY IMAGES
The government has been forced to import all it's oil from Saudi Arabia, drawing further criticism. GETTY IMAGES

The Yemeni government is considering lauching military operations in order to ressucisate the country's oil production and export operations.

As detailed in an earlier analysis, the Yemeni government is facing both power and fuel shortages at home, and a disasterous shortfall in revenue as exports have all but stopped.

A military operation is likely if local tribal leaders do not allow the government to repair the vital oil pipeline soon. “We’re close to reaching either a deal or a crackdown,” said the official in a Reuters report, who declined to be named.

“There is mediation, we have been in contact with them. But our patience is limited.”

The nation’s crude pipeline from Wadi Ubayda in the Ma’rib region remains ruptured after an attack in March, preventing the transport of oil for export from the Ras Isa terminal on the Red Sea. 

The country's main 130,000 barrels per day Aden refinery is dry as crude remains in desperately short supply. Until the Wadi Ubaya pipeline is fixed, exports of Ma’rib Light Crude are completely halted, bringing the Aden refinery to a halt.

The Yemen is heavily dependent on hydrocarbons, which account for 25 percent of GDP, over 70 percent of government revenues, and over 90 percent of foreign exchange earnings.

 

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