The Iran war has led to a loss of nearly a billion barrels of oil, with the shortage growing worse every day the Strait of Hormuz remains closed.
CEOs of key oil and gas companies say the disruption will drive fundamental structural change across the energy landscape, prioritizing energy security and increasing investment in oil exploration and production.
Governments and industry will aim to diversify their energy supplies, rebuild oil stockpiles, and ensure greater redundancy in infrastructure, said CEOs from SLB, Baker Hughes, Halliburton, Exxon Mobil, and Diamondback Energy.
The war has underscored the dependence of Asian economies on Middle Eastern crude oil and liquefied natural gas imports, leading to a rebuilding of global inventories above historical levels.
U.S. crude oil will become more important in preserving energy security, with U.S. crude exports hitting record highs during the war.
The market has shifted from expectations of a surplus this year to a big deficit, supporting elevated oil prices after the war is over and encouraging investment in offshore and deepwater opportunities in Africa, the Americas, and Asia.