Shell CEO says blockade may mean energy shortages last into 2027
Shell's CEO has warned that energy shortages caused by the Strait of Hormuz blockade may extend into 2027. The blockade has resulted in a significant reduction in oil and LNG production, leading to increased competition for supplies and rising prices. Shell's recent acquisition of ARC Resources aims to support production growth and diversify its supply sources amid these challenges.
- ▪The blockade has resulted in a loss of roughly 900 million barrels of oil production in recent months.
- ▪Countries like Iraq, Kuwait, and Qatar have had to shut down production due to the blockade.
- ▪Shell's acquisition of ARC Resources for US$13.6 billion is its largest deal in over a decade, aimed at supporting LNG supply to Asia.
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Shell CEO says blockade may mean energy shortages last into 2027Sign up now: Get ST's newsletters delivered to your inboxShell agreed earlier this week to buy Canadian shale producer ARC Resources for US$13.6 billion (S$17.4 billion).PHOTO: REUTERSPublished Apr 29, 2026, 12:40 PMUpdated Apr 29, 2026, 05:26 PMListenDUBAI – The oil and liquefied natural gas (LNG) shortages caused by the Strait of Hormuz blockade are likely to drag on for months and possibly into 2027, Shell chief executive Wael Sawan said. “We are talking about roughly 900 million barrels that haven’t been produced in the last couple of months, and that’s been replaced essentially by stock drawdown,” Mr Sawan said in an interview with Bloomberg TV. “We’re now starting to reach some relatively low levels.
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