Chevron CEO Mike Wirth Talks Energy Markets, Iran War

Summary

---

Podcast Summary: Chevron CEO Mike Wirth Talks Energy Markets, Iran War

Podcast: Bloomberg Talks
Host: Romaine Bost & Katie Greifeld (Bloomberg)
Guest: Mike Wirth, CEO of Chevron
Date: May 4, 2026

---

Overview

This episode, recorded live at the Milken Global Conference in Beverly Hills, features a timely interview with Chevron CEO Mike Wirth. With heightened instability in the Middle East, including renewed hostilities and the closure of the Strait of Hormuz, the discussion centers on the geopolitical impacts on global energy markets, possible supply disruptions, and Chevron's response in this volatile environment.

---

Key Discussion Points & Insights

1. Geopolitical Tension and Strait of Hormuz Closure

• Current Situation: The Middle East ceasefire has broken down, affecting the transit corridor in the Strait of Hormuz.

  • Mike Wirth on the crisis:
    “It sounded as if there were plans to try to establish a transit corridor. Now we've got these reports that there have been some kinetic activity in the region...we remain concerned about the security of transit.” (01:25)

• Impact on Chevron:
  Wirth notes they've been in touch with shipping personnel and remain vigilant about security and possible disruptions in oil flow. Chevron, with shipping and extraction assets in the region, is directly affected.

2. U.S. Government Response

• Policy Advice: Wirth clarifies his role is to offer insight on energy markets, not on military or diplomatic fronts.
  • “My advice to the president really relates to energy markets, not to diplomacy and in negotiations...buffers in the system that help ensure supplies...are being drawn down. And what that does is it creates more upside, price pressure, potentially more volatility and more risk.” (02:03)

3. U.S. Export Capacity and Global Supply Gaps

• Growing Role: The U.S. is the world's largest energy producer and has been increasing exports of crude oil and gas—a relief for global markets under stress.

  • “It’s a good thing for the world that the US is able to help meet the need. That said, 20% of the world’s energy supply flows through the Strait of Hormuz...the US can’t make up all of that supply...the supply situation is tightening and that’s a concern.” (02:52)

• Limitations: Despite increased U.S. output, it cannot fully compensate for such a massive disruption; inventory drawdowns signal tightening supply globally.

4. Regional Consumer Impact and Risk

• Price and Outages: The U.S. may be relatively insulated from physical shortages, but is not immune to global price increases.

  • “The US is not going to see supply outages. We're starting to see risks of supply outages in some of these economies...In Europe, you've seen flights canceled...jet fuel is getting very, very tight...Asia...policies to reduce demand because they're concerned about running out of supply.” (03:56)

• Europe & Asia: Countries highly dependent on Middle Eastern imports, especially where local refining is limited, are already taking demand-reducing actions to cope with shortages.

5. Chevron’s Middle East Operations

• Operational Impact:

  • Production in Kuwait and Saudi Arabia has slowed due to export limitations and filling storage.
  • Offshore natural gas production in the Mediterranean (supplying Israel, Jordan, Egypt) is running at full capacity.
  • Petrochemical joint ventures in the region are cut back.
    • “We’re feeling this. We’re less exposed to the Middle East than some of our peers...on a relative basis, the impact on our company has been lower than it has been for some others.” (04:50)

• Financial Toll: Recent regional volatility cost Chevron about $3 billion last quarter.

6. Forecasting in Turbulent Times

• Scenario Planning Over Prediction:

  • Wirth highlights the challenge of forecasting in commodity markets amid geopolitical uncertainty.
    • “Forecasting in a commodity business is always a challenge because we have to assume what commodity markets will do and they surprise us. What we’re doing now is really working with scenarios.” (05:41)

• Flexible Response: The company is modeling a range of outcomes as a basis for key decisions, rather than betting on specific forecasts.

7. Production in Other Regions (Permian, Argentina)

• Expansion Plans:
  • Chevron is increasing production outside the Middle East.
    • “We are growing. Our plans are to grow 7 to 10% globally this year. Demand is growing about 2%. So we’re investing to grow at a rate greater than global demand...those supplies are sorely needed in the market.” (06:20)

---

Notable Quotes & Memorable Moments

• “Buffers in the system...are being drawn down. And what that does is it creates more upside, price pressure, potentially more volatility and more risk.”
  — Mike Wirth (02:03)

• “The US can’t make up all of that supply.”
  — Mike Wirth (02:52)

• “We’re less exposed to the Middle East than some of our peers...the impact on our company has been lower than it has been for some others.”
  — Mike Wirth (05:07)

• “What we’re doing now is really working with scenarios...We can’t predict what the price will be and what supply and demand will be. We’re looking at a range of alternatives.”
  — Mike Wirth (05:41)

• “Our plans are to grow 7 to 10% globally this year. Demand is growing about 2%.”
  — Mike Wirth (06:20)

---

Timestamps for Key Segments

• 00:52 – 01:25: Setting the scene—impact of Middle East violence on markets
• 01:25 – 02:03: Wirth on real-time operational concerns in the region
• 02:03 – 02:34: Wirth’s policy advice to the U.S. administration
• 02:52 – 03:32: Limits of U.S. capacity to compensate for Middle East supply loss
• 03:56 – 04:39: Global ripple effects—supply risks in Europe/Asia vs U.S.
• 04:50 – 05:26: Chevron’s production adjustments in the Middle East
• 05:41 – 06:09: Strategic scenario planning over prediction
• 06:20 – 06:38: Chevron production growth in Permian, Argentina

---

Summary

The episode illuminates how cascading geopolitical conflict—specifically the closure of the Strait of Hormuz—threatens not just regional but global energy stability. Mike Wirth lays out Chevron’s approach: vigilant scenario-based planning, targeted production growth in less-affected regions, and a sober acknowledgment that U.S. output alone can’t offset deep Middle East disruption. The conversation delivers practical insights into energy economics under strain, with a focus on flexibility, risk, and the limits of even the world’s largest producers to insulate markets from geopolitical shocks.

---

Transcript

[Indiana University Narrator]

Indiana University strengthens tomorrow's workforce with practical, real world experience. IU grads make a difference in your community, serving as teachers, nurses and engineers who rise to tomorrow's challenges and meet them. Learn more at iu.edu impact

[Cincinnati Insurance Narrator]

Bloomberg Audio Studios Podcasts Radio News welcome to our

[Romaine Bost]

continuing coverage from the Milken Global Conference here in Beverly Hills, California. I'm Romaine Bost.

[Katie Greifeld]

DICK and I'm Katie Greifeld.

[Romaine Bost]

We've got a lot to talk about today. Of course, this is a very sprawling conference here, more than 300 sessions, and a big topic in a lot of those sessions, Katie Greifeld, is energy.

[Katie Greifeld]

It's hard to ignore. Of course, you can see the reaction in markets today. And this is a story that, you know, we've been coming to grips with over the past two months, and it just continues.

[Romaine Bost]

And absolutely, we came into today thinking that we were still in a cease fire, thinking that we were making progress towards a reopening of the Strait of Hormuz. But you've seen the headlines, you've heard them here on Bloomberg Television. And that conversation continues right now with the CEO of Chevron, Mike Wirth. Mike, great to have you here on the of course, I have to start with the news of the day here. Whatever cease fire that we did have in the Middle east, at least for right now, seems to have broken down a lot of questions right now about just how prolonged this closure of the Straight Hormuz will be and just how much it's going to affect the economy.

[Mike Wirth]

I think it's still difficult to say, Romain. It sounded as if there were plans to try to establish a transit corridor. Now we've got these reports that there have been some kinetic activity in the region. I've been in touch with our people that manage our shipping assets in the region, and we remain concerned about the security of transit. So, you know, seems like we still have, you know, some issues to work through.

[Romaine Bost]

You are no stranger to Washington. You've had a seat at the president's table more or less multiple times here. What would your advice be to the administration to try to bring this to some sort of conclusion?

[Mike Wirth]

Well, my advice to the president really relates to energy markets, not to diplomacy and in negotiations. And, you know, I've advised people in the administration that this the buffers in the system that help ensure supplies are available to markets are being drawn down. And what that does is it creates more upside, price pressure, potentially more volatility and more risk. And so I confine my discussions really to the energy system, not to diplomacy or the military side of things.

[Katie Greifeld]

Fair enough. It is interesting though. You think about where the US sits in this. You look at net exports coming from the US They've certainly increased. We saw that last week as well. But how long can that sort of continue and plug the gaps that we're starting to see in the global supply chain when it comes to energy markets?

[Mike Wirth]

Well, the US is the largest producer in the world and we've been exporting products, crude oil, gas, in growing quantities in recent years. And so it's a good thing for the world that the US is able to help meet the need. That said, 20% of the world's energy supply flows through the Strait of Hormuz. That's oil. That's liquefied natural gas. It's refined products goes to Europe and Asia primarily. And both of those regions are seeing the impact of having that much cut off. The US can't make up all of that supply. Inventories in the system are being drawn down and, and the supply situation is tightening and that's, that's a concern.

[Katie Greifeld]

And you know, you think about the US and where we stand when it comes to production. That of course has insulated the US Consumer to some degree from some of the higher prices that we're seeing in Asia that we're seeing in Europe. And I just wonder from where you're sitting, how long you think that will continue to be the case or, you know, is the US heading towards a situation where consumers are going to, to see the same sort of prices that we're starting to see in Asia?

[Mike Wirth]

I think the, the real thing is the US is not going to see supply outages. We're starting to see risks of supply outages in some of these economies. In Europe, you're seeing flights canceled and schedules re optimized because jet fuel is getting very, very tight. In Europe. We've seen a number of economies in Asia that have instituted policies to reduce demand because they're concerned about running out of supply. Countries like Australia that, that have shut down most of their refining capacity and are heavily dependent upon imports are taking measures to, to address that. So I think the US Is going to see the price pressures. It's a global market. These prices are set in global commodity markets. But the, the risk of supply outages in other parts of the world is much higher than it is here in

[Romaine Bost]

the U.S. i'm curious, I mean, Chevron has made some big investments in the Middle east in recent times here. Has the situation over the last couple of months disrupted any of that Change your plans at all.

[Mike Wirth]

We've got some production in Kuwait and Saudi Arabia that has been slowed down as we don't have the ability to evacuate it out of the region and storage is filling. So we've seen some reductions in rates of production. We produce natural gas offshore in the Mediterranean that supplies Israel, Jordan and Egypt. Our facilities there are running at full capacity. We've got some petrochemical joint ventures in the region that are cut back in terms of their production. So we're feeling this. We're less exposed to the Middle east than some of our peers. And so on a relative basis, the, the impact on our company has been lower than it has been for some others.

[Romaine Bost]

It still costs you about $3 billion in the most recent quarter. A lot of the volatility that we've seen in this market. I am curious as to how you forecast going forward without necessarily being able to necessarily forecast military, diplomatic solution to all of this.

[Mike Wirth]

Well, forecasting in a commodity business is always a challenge because we have to assume what commodity markets will do and they surprise us. What we're doing now is really working with scenarios. And so we look at different scenarios for when things might resume to a more normal state. What that means for supply in the world, what it also means for demand, as you see demand adjustments. And so we can't predict what the price will be and what supply and demand will be. We're looking at a range of alternatives and trying to use those to inform decision making.

[Katie Greifeld]

And Mike, we only have about 30 seconds left with you, but do you have any plans to increase production in places such as the Permian, such as Argentina, as we talk about these supply shortfalls?

[Mike Wirth]

Yeah, we're up quarter on quarter, same quarter last year, 500,000 barrels a day. So we are growing. Our plans are to grow 7 to 10% globally this year. Demand is growing about 2%. So we're investing to grow at a rate greater than global demand is and those those supplies are sorely needed in the market.

[Romaine Bost]

Mike, really appreciate you taking time for us. Absolutely. Mike Wirth there, the chef, the CEO of Chevron alive from the Milken Conference here in Beverly Hills, California.

[Indiana University Narrator]

Preparing for tomorrow's careers requires forward thinking education. Indiana University graduates are degrees above the competition, building on strong foundations to create new possibilities that make a difference where you live. IU trained nurses practice simulated emergencies before setting foot in a hospital. Future teachers gain guided classroom experience through IU before graduating high school. And IU engineering students solve modern technology challenges through cutting edge microchip research that impacts everything from cell phones to space travel. Developing a talented workforce isn't a side effect of an IU education it's the outcome. Learn how IU supports workforce development at iu. Edu Impact if you follow markets, you

[Cincinnati Insurance Narrator]

know the value of long term thinking. You plan, you diversify. You prepare for volatility. But even the best strategies can't prevent every bad day. For more than 75 years, Cincinnati Insurance has helped individuals and businesses navigate tough moments. With expertise, personal attention and independent agents who focus on relationships, not transactions, the Cincinnati Insurance companies Let them make your bad day better. Find an agent at Cinfin. Com.