Aden — For three decades prior to the outbreak of war, Yemen’s oil and natural gas sector played a decisive role in shaping the country’s economic structure. 

The industry was a cornerstone of the national economy, contributing significantly to the gross domestic product (GDP), financing the state budget, and driving the bulk of Yemen’s exports.

Between 2000 and 2014, oil revenues accounted for roughly 20% to 30% of GDP. Export earnings from crude oil represented about 70% to 75% of government revenues and nearly 90% to 95% of Yemen’s total exports abroad.

However, despite its central role, the sector’s wealth did not translate into tangible development gains. Most discovered oil fields were heavily depleted, and production declined sharply in the decade leading up to the conflict. 

Official data show that Yemen’s oil output peaked in 2005 at around 500,000 barrels per day, before falling to nearly half that level in subsequent years.

The decline underscored the fragility of Yemen’s economic dependence on hydrocarbons, leaving the country vulnerable as political instability and war later compounded the downturn.