Yemeni oil Market Analysis

Yemen Oil Market Analysis

3 .1 The Political Economy of Oil

Yemen 's economy , much like all the economies in the Middle East , relies heavily on oil exports . Determining the politics of the region requires first a study in the production figures of Yemeni oil and the crude oil exports and petroleum imports . In to fully understand the politics of the region , it is beneficial to include other surrounding countries in the comparison

Yemen is a country situated in the Middle East and is attempting to become a worldwide leader in

an economic setting . The current economy of Yemen relies heavily on oil production , and it can be calculated that if oil production was non-existent in the country , the wealth of the country would fall further and possibly make the country one of the poorest countries in the world (World Fact Book . The GDP of Yemen demonstrates how even though oil production is a major source of wealth in the country it still is considered a fairly poor country . The current figures of Yemen 's GDP are 22 .74 billion (in dollars after the exchange rate , which makes Yemen number 85 in the world as far as GDP numbers (World Fact Book

Comparing Yemen to the entire world is not an accurate depiction . To garner a greater perception of Yemen 's situation , it is essential to discuss Yemen in terms of their position alongside other countries in the Middle East region . The table below displays Yemen 's oil production in relation to Saudi Arabia , Qatar , UAE , Kuwait , Oman , and Bahrain This table represents how Yemen is in a fairly impressive position when compared to other major oil producers in the area . Other countries have been producing oil for many years before Yemen , which means Yemen has made some progress in their production capabilities in recent years

Table : Production of Oil in Middle East Countries as of 2005 (in thousands

Yemen Qatar Saudi Arabia UAE Kuwait Oman Bahrain

Production (bbls /day ) 402 95 2 ,000 2 ,540 333 740 184

Source : IEA

Understanding Yemen 's profits from oil and Yemen 's use of oil-based products is important when attempting to identify the strengths and weaknesses of Yemen 's economy . The following table below displays Yemen 's oil exports and oil imports in barrels per day

Table : Yemen Oil Exports and Oil Imports as of 2004 (in bbl per day

Petroleum Exports Petroleum Imports

Barrels Per Day 320 ,600 58 ,100

Source : World Fact Book

One important finding from the table above is that Yemen has greater exports than imports . Actually the amounts are nearly six times more exports than imports , which denotes the fact that Yemen is maintaining a great export market and not risking that market to meet domestic petroleum needs

3 .1 .1 Political Factors

Yemen 's current oil production is in a transition . Currently , Yemen has an aging refinery and a more recent refinery that is supplying crude production capabilities . Yemen 's dependence on foreign companies for...