Chevron's CEO Warns of Impending Gas Shortages, Economies May Slow

CVX CEO Mike Wirth warned that physical oil shortages could emerge worldwide within weeks as the closure of the Strait of Hormuz, the chokepoint for roughly a fifth of global crude, chokes off supply . Speaking at the Milken Institute Global Conference, Wirth said the disruption could rival the supply shocks of the 1970s.

Wirth noted that commercial stockpiles, shadow-tanker fleets and strategic reserves are already being drawn down to delay shortages, and cautioned that economies "are going to have to slow," starting in Asia, the region most dependent on Gulf oil, and then Europe . The warning points to sustained upward pressure on oil prices and broad macroeconomic spillovers.

Chevron's integrated model, spanning upstream, midstream and downstream operations, and its long dividend-growth record position it as a relatively resilient operator if prices stay elevated, in contrast to pure-play producers. Investors will watch the duration of the Hormuz disruption, OPEC+ spare-capacity response, and whether demand destruction sets in as pump prices climb.

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