A Fuel Shortage 'As Big As In The 1970s' May Be Coming, Says Chevron CEO
"Ever since the U.S.-Israeli war with Iran began, the Straight of Hormuz has been closed for business. More than 20% of the world's oil is typically transported through Hormuz, and has been largely at a standstill for nearly two months. On Monday, Chevron CEO Mike Wirth warned that this chokepoint could lead to physical oil shortages for much of the world. Tightening supply will force demand to deflate as people feel the pinch at the pump, with deleterious effects on the global economy. We've already seen Spirit Airlines fail, an early victim of the supply crunch as jet fuel costs exploded. Buckle up, folks, it's about to get bumpy."
"With rambling, 79-year-old President Donald Trump on the case, the man who called affordability a 'good line of bullsh*t,' it'll almost assuredly get worse before it gets better. Wirth, reports Reuters, even went so far as to invoke the twin oil supply crisis of the 1970s, which led to international rationing, political gridlock, and economic crisis. The current situation has escalated past the point where supply buffers built into the system can absorb the shock, and national strategic reserves, including our own, are being drawn down."
"Wirth, as sitting Chief of a major international oil company, would obviously have significantly more visibility into any of this than you or I would, and if he sees a 1970s-style oil crisis on the horizon, it's probably time to start fretting a bit. Maybe that $10 per gallon gasoline is closer than we might have previously believed. If supply flows are basically shut down to the point where we can't produce or deliver as much fuel as is needed globally, what we're currently seeing will only be the tip of the iceberg."
Continued at link:
https://www.jalopnik.com/2165386/fuel-shortage-1970s-coming-chevron-ceo/
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Gee, the public ought to like that a lot. 