Exxon Mobil Corp. said global oil markets may remain tight for another three to five years largely because of a lack of investment since the pandemic began.
It’ll take time for oil firms to “catch up” on the investments needed to ensure there’s enough supply, Chief Executive Officer Darren Woods said at the Qatar Economic Forum on Tuesday.
Oil prices have soared almost 50% this year to around $110 a barrel, mainly because of the fallout from Russia’s invasion of Ukraine. That further squeezed a market struggling to raise production fast enough to cope with economies recovering from the pandemic.
Woods was speaking in Qatar, which is among the world’s biggest exporters of liquefied natural gas and one of few nations that can substantially replace Russian gas supplies to Europe. Firms including ConocoPhillips are investing in a $29 billion project to boost Doha’s exports.
Exxon is one of the bidders and Qatari Energy Minister Saad Al-Kaabi, speaking alongside Woods, said the US firm would get a stake. The project is one of the largest in the gas industry and state-controlled Qatar Energy is scheduled to formally announce a deal with Exxon later on Tuesday.
Qatar’s Ministry of Commerce and Industry, Qatar Investment Authority and Investment Promotion Agency Qatar are the underwriters of the Qatar Economic Forum, Powered by Bloomberg. Media City Qatar is the host organization.