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Page added on September 4, 2014
Oil attacks hurting Yemen’s economy
Militant attacks on oil facilities in Yemen are hurting the country’s ability to build a strong economic base, the International Monetary Fund said.
The IMF said it approved a $552.9 million credit to Yemen to help the country maintain a level of economic stability. The amount is available in semi-annual disbursements, though the IMF’s executive board said $73.8 million was unleashed immediately.
Yemen has struggled to sustain a level of political stability and national security since the Arab Spring in 2011 led to the resignation of longtime President Ali Abdullah Saleh. The current administration of President Abd Rabbuh Mansur Hadi is under pressure from the Houthi movement, a Shiite militia.
Naoyuki Shinohara, acting chairman of the IMF board, said national security challenges are in the way of Yemen’s economic growth.
“In particular, fiscal and external balances have weakened due to delays in key reforms and increased sabotage of oil facilities,” he said in a statement Tuesday.
The Yemeni government has said militants have tried to use attacks on oil infrastructure as a way to bargain for more revenue sharing.
Yemen relies heavily on oil revenue to support its economy. A 100,000-barrel-per-day pipeline to the Ras Isa export terminal has been the frequent target of attacks by groups loyal to al-Qaida.
23 Comments on "Oil attacks hurting Yemen’s economy"
JuanP on Thu, 4th Sep 2014 1:30 pm
I have always found it surprising that terrorists don’t destroy more oil and energy infrastructure than they do. Attacking the global oil industry would be the easiest way to achieve their objective of destroying our civilization.
We should be grateful these morons don’t understand better the importance of oil to growth or the importance of growth to the economic system that makes our civilization what it is.
markisha on Thu, 4th Sep 2014 2:09 pm
good observation juan, but perhaps there are ” invisible” hands coordinate things with oil
John D on Thu, 4th Sep 2014 2:34 pm
A bit of a paradox. Oil production in Yemen has been in serious decline for several years, which is most likely the root cause of all the unrest. It seems to me that attacks by militants on oil facilities are hastening the collapse. Maybe that is what these folks are looking for? Not sure exactly why any group would want to get control of an overpopulated desert with no resources.
Plantagenet on Thu, 4th Sep 2014 2:59 pm
I’m surprised this article about the fighting in Yemen never mentions Obama’s drone attacks on the rebels. Some of these drone attacks have killed large number of civilians, and no doubt are partly the cause of the deep anger the rebels have against the Yemeni government and the US.
JuanP on Thu, 4th Sep 2014 3:02 pm
Markisha, I agree that they are allowed to do some things, but not others by TPTB.
JohnD, I agree with your comment.
There is no doubt that the mess in Yemen is a consequence of overpopulation in a nation that finds itself past peak oil production facing the Export Land Model, ELM, dilemma. Maybe West can give us the ELM’s numbers for Yemen later.
JuanP on Thu, 4th Sep 2014 3:07 pm
Plant, I agree US droning is a factor in Yemen. I thought about bringing up the USA’s droning campaign in Yemen, too. Yemen is one of the places we attack most frequently with drones, and has been for years.
westexas on Thu, 4th Sep 2014 3:29 pm
Based on EIA data, as of 2013 Yemen was a net oil importer, total petroleum liquids + other liquids.
keith on Thu, 4th Sep 2014 5:10 pm
JaunP. Maybe the West funds these terrorists, so potential terrorists feel placated by their existence, and the West thus prevents minimal oil attacks.
Plantagenet on Thu, 4th Sep 2014 5:19 pm
The numbers show that the “West” is funding the government of Yemen—not the rebels. The article says the World Bank (mainly funded by the USA) just gave the regime running Yemen ca. 553 million dollars.
Davy on Thu, 4th Sep 2014 5:23 pm
Yemen’s economy from what I read is based upon Khat. That should tell you where Yemen is heading. They use much of their surplus water to irrigate Khat. No wonder those cats are so skinny. They would rather grow khat than tomatoes.
ghung on Thu, 4th Sep 2014 6:54 pm
I hesitate to call Yemen a failed state since it’s never been ‘successful’ by modern standards. Climate change fixed that over the last couple of thousand years. See wikipedia History of Yemen for an outline of their rich 4500+ year history, then take a Google sat flight over the country. Perhaps a good preview of the path our civilization is on.
Makati1 on Thu, 4th Sep 2014 8:34 pm
The ME is going to be a boiling kettle of trouble as long as the US/City of London keeps funding both sides. The IMF is a leech that bleeds the country to death after locking it in to mafia ‘loans’ they cannot pay back. Then in steps an American corporation and the plunder begins.
This has been going on for decades. It was mostly in the 3rd world so the 1st world ignored it. Now, the IMF Mafia is in the 1st world and plundering it’s way through Europe. Next is America…
ghung on Thu, 4th Sep 2014 9:01 pm
Jeez Mak, Yemen has been a boiling kettle for most of 4000 years. Give it a rest.
Makati1 on Fri, 5th Sep 2014 3:36 am
ghung, but it wasn’t until the US started ‘regime change’ and killed off the strong dictators that kept it in check because they weren’t doing the Us’ bidding.
Makati1 on Fri, 5th Sep 2014 3:36 am
..that the recent trouble began…
markisha on Fri, 5th Sep 2014 4:32 am
juan please can you explained to me , tptb stand for what
Norm on Fri, 5th Sep 2014 7:01 am
I remember when ….
a ‘militant’ was a terrorist.
I even remember when, an ‘undocumented immigrant’ was an illegal alien.
JuanP on Fri, 5th Sep 2014 7:50 am
Markisha, TPTB means The Powers That Be. I use the expression loosely to refer to the powers behind the throne. I don’t know who they are or whether they are organized or not, but it is not the politicians we elect making this choices, it’s the people that own them, of that much I am certain. The Military Industrial Complex and the banks are part of the powers that be, IMO. Obama and the rest are puppets in this system.
JuanP on Fri, 5th Sep 2014 7:52 am
Ghung, I agree that Yemen is leading by example. 😉
markisha on Fri, 5th Sep 2014 8:18 am
thank you I agree completely
ghung on Fri, 5th Sep 2014 10:43 am
Makati1 – My point was that this sort of thing has been playing out throughout human history, especially in Yemen (the subject of this article). The same can be said of many places; read a history of Ukraine/Moldova; once the site of a great agrarian-based civilization. Some empire or hoard always shows up to spoil the party, if not climate change or human-induced environmental degradation, geological upheaval, etc.. Such has it always been.
Yemen has dealt with this (or not) for thousands of years (House of Saud, British, Ottomans, back, back….), but you’ve chosen the US as your current bad-guy-du-jour. Nobody cares. History doesn’t care. The next big boogey man won’t care. This is your species. It is what it is, and you don’t have to like it. If the US went POOF tomorrow, it would be the Russians, the Iranians, the Chinese, ISIS, or someone….
Look at the bright side. At least you’ll never run out of people to hate. You’re stuck with that hate you know; just you – a crappy place to be until you decide otherwise.
Davy on Fri, 5th Sep 2014 11:11 am
Amen, G!
Makati1 on Fri, 5th Sep 2014 10:21 pm
ghung, no hate here, just frustration at what we wasted. I do not hate anyone, but that does not mean I cannot point out the problems in the world as I see them. We discuss the coming disasters but seldom the causes.
I am enjoying the show as I know that I cannot do anything to change the ending. When you get to age 70, maybe you will feel the same way. I have lived my life and the rest is pure gravy.
So, I share my opinion about things when I think I can get a good rebuttal or an agreement of my position. The Ps is not Paradise, but it is where I have decided to spend my last years, wherever they may lead. I don’t have to worry about freezing to death and the people are friendly and respectful of age. The prices are 1/2 or less what they are in the US. If it ends badly, so be it.