Could Middle East conflict break energy supply chains? With Matthew Fitzsimmons

When this episode was recorded at 3:00 pm CET on Monday, 16 March, the conflict in the Middle East was now entering its third week. At Rystad Energy, our thoughts remain with our colleagues, clients and everyone in the region who is directly impacted by the conflict.   Let’s Talk Energy and try to understand how the oilfield services and equipment sector is coping with the conflict. Ongoing military strikes and the de facto closure of the Strait of Hormuz have not only cut supplies of oil and natural gas but also disrupted the flow of goods and services needed to keep the oil and gas industry working. At the same time, energy infrastructure, which had been spared from major damage in the early days of the conflict is increasingly being hit by airstrikes by both sides. The situation only threatens current and future projects in the region but is also pushing up prices in the Middle East and around the world. What is the current status of key energy infrastructure in the region and what is the outlook for bringing idled or damaged facilities back online? Where do we see the biggest pinch points in the supply chain and where will those shortages create the most acute impacts?  What does all this mean for the amount of time and the cost needed to maintain global supplies of oil, natural gas and other fuels?  Related Analysis Gulf shut-ins could reduce regional crude output by 70% if US-Iran war drags on (accessible to non-clients) Special report #2- Middle East conflict implications (accessible to non-clients) Special report - Middle East conflict implications (accessible to non-clients) Gulf conflict puts upstream capex – and contractor performance – at risk (clients only) Qatar offshore rig suspensions signal growing Iranian strike threat in Gulf (clients only) Middle East conflict could lift offshore spending and cost pressures (clients only) Oilfield service stocks fall as markets price in geopolitical risk (clients only) Middle East war to push OCTG & linepipe prices higher (clients only) Labor availability constrained following Middle East attacks (clients only) Related Episodes  Middle East escalation and the scramble for LNG, with Sindre Knutsson How will Middle East conflict impact energy and the economy? With Rystad Energy Chief Economist Claudio Galimberti