Shell CEO says blockade may mean energy shortages last into 2027
Shell CEO Wael Sawan warned that oil and LNG shortages caused by the Strait of Hormuz blockade could persist into 2027, as about 900 million barrels of lost production have been offset by drawing down reserves, leading to demand curtailment and fuel switching. The disruption, stemming from the US-Iran conflict, has blocked 20% of global oil and gas flows through the Persian Gulf, driving up prices and competition for supply, especially in Asia. Shell's recent $13.6 billion acquisition of Canadian shale producer ARC Resources aims to boost long-term production and LNG supply to Asia, though the deal was planned before the conflict. Sawan emphasized that global supply-demand balances will remain tight for at least the next year due to ongoing disruptions.
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Shell CEO says blockade may mean energy shortages last into 2027 Sign 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$17.3 billion).PHOTO: REUTERSPublished Apr 29, 2026, 12:40 PMUpdated Apr 29, 2026, 12:57 PMListenDUBAI - The oil and liquefied natural gas (LNG) shortages caused by the blockade of the Strait of Hormuz are likely to drag on for months and possibly into 2027, Shell Plc chief executive officer 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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