Chevron CEO Says Natural Gas Markets Fundamentally Changed by War
(Reuters) — The global natural gas market has been more fundamentally changed for the long term by Russia's invasion of Ukraine than the oil market, CEO Mike Wirth said on Monday.
The conflict in Ukraine and ensuing Western sanctions upended global oil and gas markets and disrupted supplies from Russia.
Europe has turned away from dependence on Russian gas supplies and has no intention of changing that in the future, Wirth said in remarks at the CERAWeek energy conference. The attack that disabled the Nord Stream pipeline from Russia to Europe means changes would be long-lasting, he added.
"Gas markets, I think, are structurally changed for the longest," Wirth said.
Russian oil is still getting to the market, he said, but at different costs, as ships travel longer distances to get Russian crude and fuel to countries that have not imposed sanctions.
That has left the oil market and logistics tight and vulnerable to any unexpected supply disruption, he added.
"There's not a lot of swing capacity, there's not a lot of inventory capacity," said Wirth. "There's now a lot of constraints… an unexpected event today would create a different balance."
Wirth said maintaining secure and affordable supplies while at the same time managing the energy transition to the low-carbon industry of the future was "one of the greatest challenges of all time."
Related News
Related News
- Repsol Ditches Plans to Develop LNG Terminal on Canada’s East Coast
- Kazakh Oil Decouples from Russian Crude But Risk Weighs on Price
- Pipeline Operator TC Energy Says Stress, Weld Fault Caused Keystone Oil Spill
- US to Sell 26 Million Barrels of Oil Reserves As Mandated by Congress
- Ukraine to Jointly Buy Gas with European Union Countries
- Company Cancels Byhalia Connection Pipeline Project
- US Intelligence Suggests Pro-Ukrainian Group Sabotaged Nord Stream Pipelines -NYT
- EIA: US Natural Gas Output to Hit Record High in 2023, Demand to Fall
- US Regulator Orders Lower Pressure on Keystone Pipeline System After Spill
- US Carbon Pipeline Faces Setback as Residents Refuse to Cede Land Rights
Comments