Chevron CEO sends ominous warning to Americans on gas prices
Back in February, the United States and Israel launched strikes against Iran, igniting concerns about the global fuel economy and sending oil and gas prices surging. Now, oil executives are warning that we might not have seen the worst of the high gas prices.
As conflict in the Middle East continues and another crucial pipeline has been shut down, oil executives and industry experts are sounding the alarm, warning that a fuel crisis is upon us.
Chevron CEO Issues a Warning
Over the past few months, Chevron CEO Mike Wirth said that over the past several months, the oil industry has had some means to mitigate the impacts of the oil shortage. Now, he warns, they’re out of options.
“All these mechanisms helped to mitigate the price and supply risk,” Wirth said Friday at an energy conference in Austin, Texas, via The Wall Street Journal. “Those have largely now played out, and we don’t have nearly the buffers in the system that we did when it began.”
Wirth warned that he does not foresee oil prices going back down anytime soon, which will mean increased fuel prices at the pump.
“I wish I could tell you that I saw some reason why things would ease, but it’s difficult right now to see that happen,” he said.
No End in Sight
The primary reason for the surge in oil prices is the ongoing conflict in the Middle East, which does not seem to be ending anytime soon. In fact, in recent weeks, it seems that the conflict has picked back up.
“The advantage in most negotiations usually goes to the side that has time on their side and is willing to be patient,” said Wil VanLoh, founder and CEO of Quantum Capital Group, during the Austin conference.
He added that Iran “is willing to suffer. Their people have already suffered a lot for many decades.”
United States President Donald Trump has said he expects the war will last until the November midterm elections, vowing to use economic pressure against Iran without boots on the ground. However, investors say they believe the war will go well beyond that.
“That was the signal this is going to stretch on,” said Dan Pickering, founder of Pickering Energy Partners, a financial firm.
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