Iran war will change global energy market in these ways, oil execs say

Iran’s blockade of the Strait of Hormuz has resulted in the loss of nearly a billion barrels of oil, with the shortage growing worse every day the sea lane remains closed.

Governments and industry will prioritize energy security, Le Peuch and Simonelli said. It is “no longer simply a talking point,” said Jeffrey Miller, the CEO of Halliburton , the other big oilfield services firm.

Investment in oil exploration and production will increase as a consequence, the CEOs said. Low carbon solutions like geothermal, nuclear and grid modernization will continue to see investment, Simonelli said.

U.S. crude oil will become more important that it has ever been in helping the world preserve energy security, said Kaes Van’t Hof, the CEO of Diamondback Energy , one of the biggest U.S. shale oil producers. U.S. crude exports have hit record highs during the war.

The oil market is now “fundamentally tighter” due to supply disruption, Miller said. The market has shifted from expectations of a surplus this year to a big deficit, he said.