Chevron CEO Mike Wirth has highlighted significant risks to global energy supplies due to rising geopolitical tensions. In an interview with Maria Bartiromo on ‘Sunday Morning Futures,’ Wirth addressed the volatility in the oil market, the rising gas prices, and the crucial need for reform in permitting by Congress. He emphasized the stabilizing role of U.S. production in international markets.
Wirth voiced concerns over the dangers in the global oil industry as tensions with Iran escalate and Houthi attacks on Saudi oil facilities stir fears of a shipping crisis. These comments coincide with oil price increases after President Trump’s decision to pause U.S. strikes against Iran, while Saudi Arabia seeks to protect critical shipping routes through an international coalition.
“The risks to supply are very real, with uncertainties not only in the Strait of Hormuz but also in the Red Sea and the Black Sea,” Wirth noted during his appearance.
Renewed focus on securing energy supply arises from the fact that global energy demand remains strong, yet markets are fragile and uncertain. The U.S. conflict with Iran has entered its sixth month, adding stress to the global energy system with declining inventories.
The Strait of Hormuz stands out as a key conflict point in the U.S.-Iran tension, with significantly reduced vessel traffic due to heightened risks. Concurrently, recent Houthi attacks have threatened the Red Sea shipping routes. Wirth acknowledged that energy assets have been targeted, decreasing the system’s ability to meet global demand, and new risks are being priced into the market.
Currently, U.S. crude oil trades around $84 per barrel, while gasoline prices have surged, with the national average reaching $4.09 per gallon, up from $3.15 one year ago. Chevron’s production has increased by 20% year-over-year, with significant growth in recent quarters, setting a new record of over 2 million barrels of oil equivalent produced in one day.
In response to the ongoing geopolitical uncertainties, Chevron is exploring projects with Iraq to develop oil fields. Wirth mentioned discussions about constructing a pipeline to transport oil to the Mediterranean Sea, bypassing the Strait of Hormuz, reducing reliance on unpredictable shipping routes.
Nora Moriarty is a Writer at Fox News Digital.
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