Chevron CEO Warns $84 Oil Faces Very Real Supply Threat as Hormuz Traffic Shrinks
Updated
Updated · Fox News · Aug 2
Chevron CEO Warns $84 Oil Faces Very Real Supply Threat as Hormuz Traffic Shrinks
3 articles · Updated · Fox News · Aug 2
Summary
$84 U.S. crude and $4.09 gasoline reflect what Chevron CEO Mike Wirth called a “very real” threat to global oil supplies as the Iran conflict and Houthi attacks unsettle key shipping lanes.
Wirth said risks now span the Strait of Hormuz, the Red Sea and the Black Sea, with energy assets targeted, infrastructure damaged and global inventories falling while demand stays strong.
Traffic through Hormuz has dropped to only a handful of vessels a day, and Wirth said new shipping risks will be priced into markets until damaged supply capacity returns.
Chevron is trying to offset that strain with output up 20% from a year earlier and a record above 2 million barrels of oil equivalent in a day in the U.S.
The company is also discussing Iraqi oil fields and a northbound pipeline to the Mediterranean, aiming to bypass the Strait of Hormuz and reduce exposure to Middle East chokepoints.
If US oil production is hitting record highs, why are everyday consumers still facing surging gasoline prices at the pump?
Could Chevron's proposed Iraq-to-Mediterranean pipeline truly bypass Middle East tensions, or is it just trading one vulnerable chokepoint for another?
Are skyrocketing maritime insurance costs secretly acting as a global blockade that forces the world to rethink its energy supply chains?