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Yemen-Background
Yemen is a minor oil and gas producer but its location is strategic for world oil shipping.	Yemen's location on the Bab al Mandab, one of the world's most strategic shipping lanes through which an estimated 3.7 million barrels of oil pass daily, makes Yemen important to the global oil trade. Disruption to shipping in the Bab el-Mandab could prevent tankers in the Persian Gulf and the Gulf of Aden from reaching the Suez Canal/Sumed pipeline complex, requiring a costly diversion around the southern tip of Africa to reach western markets. Yemen's economy 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. Yemen is actively seeking to increase foreign investment in its energy sector, but concerns about piracy in the Gulf of Aden, which it shares with Somalia, may be limiting prospects for increased foreign investment in Yemen's oil and gas sectors. Declining oil revenues are weakening the government's ability to provide basic services.     Full