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An energy crisis, particularly fuel, could hit Europe as early as next month, Shell CEO Wael Sawan warned, stressing that ensuring sufficient supplies is essential for national security.
Faced with the significant increase in aviation kerosene prices, the oil company's CEO predicted a similar increase in gasoline and diesel prices as the summer season approaches.
"Countries cannot have national security without energy security," Sawan said, adding that Shell was working with governments to help them address the energy crisis, including through conservation and procurement. The conflict in the Middle East, now in its fourth week, has already impacted jet fuel supplies, with oil expected to be next, followed by gasoline as the summer season begins in the Northern Hemisphere , Sawan said.
The war has damaged major energy facilities and nearly halted shipping through the Strait of Hormuz, which processes about 20% of global flows of oil and liquefied natural gas.
"South Asia was the first to take that weight. This has shifted to Southeast Asia, Northeast Asia and then even more to Europe as we enter April," he said during his speech at the CERAWeek conference in Houston, Texas.
German Economy Minister Katherina Reiche also warned that energy supply shortages could occur in late April or May if the conflict continues.
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