ExxonMobil says shale boom shields US from war oil outages

2026-03-03 - 21:24

ExxonMobil said crude and liquefied natural gas markets were ‘very well supplied’ before the Middle East conflict. (Reuters pic) NEW YORK: Thanks to the US shale boom, the United States is “well positioned” to navigate energy market disruptions due to the Middle East war, a top ExxonMobil executive said Tuesday. Jack Williams, senior vice president at the oil giant, described the situation as “very dynamic” after significant outages, while noting that crude and liquefied natural gas markets were “very well supplied” heading into the conflict. “Clearly this is a big disruption and... it comes down to how long the Strait of Hormuz is going to be closed to anchor traffic,” Williams said during a Wall Street conference. However, “We are obviously very, very well positioned because of this shale revolution that took place over the last decade,” he said. Vessel traffic has essentially deserted the Strait of Hormuz after private insurers dropped war risk protections following the US-Israeli attacks on Iran that began Saturday. The waterway sees the transport of about 20% of global crude supplies, and the vessel stoppages have led to a spike in crude prices. Williams said the United States had “good physical access to what we need here,” even though prices are set on the global market. He also noted that ExxonMobil has staff in Saudi Arabia and other Middle Eastern countries. “A priority concern for us is our people in the region,” he said.