The restoration of oil and gas production after the war in the Middle East could take up to two years. This was stated by the Executive Director of the International Energy Agency, Fatih Birol, as reported by UNN with reference to Bloomberg.
Details
According to Birol, the recovery will be gradual due to significant destruction of energy infrastructure, including oil fields, refineries, and pipelines in the Persian Gulf region.
There is a common belief that once we see the strait open... we will return to previous production levels, which I think is misleading.
Impact of the Strait of Hormuz
The situation is complicated by the almost complete blockade of the Strait of Hormuz, through which a significant part of the world's energy supplies pass.
This has already led to the loss of hundreds of millions of barrels of oil and petroleum products on the market.
The restoration of liquefied natural gas supplies could take even longer, as some terminals have suffered serious damage and will require more than two years to return to normal operation.
Consequences for the global economy
Birol warned that countries importing energy, especially in Asia and Africa, would suffer the most from the protracted conflict.
He also noted that the first signs of declining demand are already being observed, particularly due to resource rationing and increasing inflationary pressure.
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