Shell CEO Wael Sawan warns that oil and liquefied natural gas (LNG) shortages may persist until 2027. The ongoing blockade of the Strait of Hormuz drives these supply constraints.
Global production has dropped by approximately 900 million barrels in recent months. This supply gap forced a significant drawdown of global stockpiles to critical lows.
Geopolitical tensions triggered a rise in Brent crude prices. Shell recently agreed to acquire Canadian shale producer ARC Resources for $13.6 billion. Sawan told Bloomberg TV that the company evaluated the ARC Resources deal for two years before the current conflict began.