A disruption to global energy supplies from the U.S.-Israeli war on Iran lasting beyond three to four months would pose a systemic risk to the global economy, TotalEnergies CEO Patrick Pouyanne said on Monday.
The disruption to global fuel supplies is worse than the disruption to crude oil supplies because it has been exacerbated by a Chinese export ban on products like diesel, gasoline and jet fuel, Pouyanne said at the CERAWeek energy conference in Houston. China banned the exports to ensure sufficient domestic fuel supplies during the crisis.
The ban has made the fuel supply situation in Southeast Asia unsustainable, Pouyanne said.
The U.S.-Israeli war on Iran and Tehran’s attacks on Gulf neighbors have damaged major energy facilities and brought shipping through the Strait of Hormuz – which handles about 20% of global oil and liquefied natural gas flows – close to a halt.
Pouyanne touted Total’s investments in electricity, as the company bets on rising demand driven by artificial intelligence and continues to invest in renewable energy alongside gas-fired power plants.
Total in February signed two long-term deals to supply solar power to Google’s data centers in Texas, and agreed in 2025 to a 15-year power purchase deal to supply Google with 1.5 terawatt hours of renewable electricity from its Montpelier solar farm in Ohio.
(Reporting by Stephanie Kelly; Editing by Mark Porter and Nia Williams)