Shell CEO says blockade may mean energy shortages last into 2027
Shell CEO Wael Sawan indicated that energy shortages caused by the Strait of Hormuz blockade could extend into 2027. He noted that approximately 900 million barrels have not been produced recently, leading to low stock levels and demand curtailment in some regions. The ongoing conflict between the US and Iran has significantly impacted global oil and LNG supplies, prompting countries to seek alternative sources.
- ▪The blockade has resulted in a significant reduction of oil and LNG supplies, affecting global markets.
- ▪Shell's acquisition of ARC Resources for $13.6 billion aims to support production growth and diversify supply sources.
- ▪Brent crude prices have risen to $111.19 a barrel amid ongoing tensions between the US and Iran.
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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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