Oil companies will have to look further afield for new fossil fuel resources now that the Iran war has dented the investment allure of the energy-rich Middle East…
Oil companies will have to look further afield for new fossil fuel resources now that the Iran war has dented the investment allure of the energy-rich Middle East. Higher oil prices will give them that chance.
Major international oil companies, including Exxon Mobil, Chevron, TotalEnergies, Shell and BP, have long been drawn to the Middle East by its vast resources, stable fiscal terms and, until recently, relative political stability. The region accounts for roughly a fifth of global oil and liquefied natural gas (LNG) production.
That reputation, built painstakingly over decades even as wars raged in Iraq and Yemen, has now been shattered by the U.S.-Israeli war with Iran.
Now in its fifth week, the conflict has put energy infrastructure squarely in the crosshairs. Dozens of facilities across the Gulf have been damaged, including Qatar’s giant LNG hub and several major oil refineries.
The closure of the Strait of Hormuz - through which roughly 20% of the world's oil and gas normally flows - has forced producers to shut oilfields, costing the region an estimated $1 billion a day in lost export revenues, according to Reuters calculations based on pre‑war prices.
The longer‑term costs will be far higher. Restarting operations and
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