Highlights
The crude oil production and liquefed natural gas (LNG) exports declined by 76.8% and 80.3% respectively in 2015 compared to 2014. The lost opportunity cost of crude oil production and LNG exports is estimated at about $2.5 billion and $1.6 billion respectively in 2015.
Oil refning in the Aden Refnery was suspended, oil production in Marib Refnery dropped by 4.8% and fuel imports decreased by 65.3%%, resulting in a scarcity of fuel supply in the local market.
The fuel sales of the Yemen Oil Products Distribution Company (YOPDC) fell by about 65.2% in 2015, accompanied by a drop in sales of the cooking gas by 18.5%, leading to an unprecedented fuel crisis.
Severity of the fuel crisis varied from one area to another and also from one sector to the other. For example, Marib governorate was less afected by the fuel crisis. Fuel sales of YOPDC to the power plants, airlines companies and cement factories fell by 77%, 80.8% and 81.8% respectively in 2015.
Fuel and cooking gas prices hit record levels in 2015. Although these prices decreased during the frst quarter of 2016, they remained more than double compared to the pre-crisis levels. Fuel prices were the highest in Taiz governorate.
The Gross Domestic Product (GDP) of the oil and gas sector shrank by about 75.7%, contributing to a drop in the GDP per capita by about 36.1% in 2015.
The decline in oil and gas exports by about 84.5% in 2015 resulted in a lack of foreign exchange, deterioration of the national currency and higher infation and poverty rates.Oil and gas revenues of the state public budget have declined by $3.7 billion in 2015. As a result, the budget was forced to stop most of its expenditure items, including the suspension of the cash assistance disbursal to the poor and reducing the operational costs of the basic social services.
The fuel crisis has deprived people from accessing water and health services, particularly the IDPs. Women and children bear the burden of carrying water on their back to the house. Services of the primary health care and public hospitals have been disrupted as well.
Nearly 91,224 gas cylinders have been destroyed and 18 fuel and gas stations sustained partial or complete damage.