Chevron CEO Mike Wirth said he is uncertain how quickly shut-in production in the Middle East stemming from the ongoing U.S.-Israel war with Iran will return.
“It will take time to come out of this,” Wirth said on Monday at the CERAWeek conference in Houston. Tightness in the energy market due to the closure of the Strait of Hormuz has not been fully priced into forward oil prices, he said.
“We’ve seen tightness in distillate products like diesel and jet (fuel) and in particular, Asia is facing some real concerns about supply,” Wirth said.
U.S. oil production, which has been forecast to plateau by the end of the decade, could see a boost if higher crude prices are sustained for a longer period due to the conflict, he said.
The comments come after Qatar said damage to its liquefied natural gas facilities could wipe out 17% of its LNG capacity and take close to five years to repair.
(Reporting by Sheila Dang in Houston; Editing by Nathan Crooks and David Gaffen)