Patrick Pouyanné, the CEO of TotalEnergies warned that if the blockade of the Strait of Hormuz “continues for another two or three months,” France will enter a “period of energy shortage.”
Pouyanné stated: “We have now used all available surplus (reserves), but if this situation continues for another two or three months, we will enter a period of energy shortage—similar to what some Asian countries are currently experiencing.”
He added: “Leaving 20% of the world’s oil and gas reserves stranded in the Strait of Hormuz will have serious consequences. Everything depends on how long this situation lasts.”
Pouyanné, recalling that his company has “lost 15% of its (own) production in the Middle East” due to the war between the United States and Israel against Iran, continued: “Resolving the Strait of Hormuz issue is vital.”
The CEO of TotalEnergies said on Friday at the Global Policy Conference organized by French Institute of International Relations that “flexibility” is needed in dealing with disruptions in the Strait of Hormuz. He also pointed to investment “possibly in new pipelines” to reduce dependence on this strategic waterway.
He acknowledged that the Persian Gulf has provided a “very cheap” route for energy transportation, and for that reason, replacing it will be difficult.
Pouyanné stated: “What is certain—and we have not done very well in this regard—is that if we invest in the Middle East, we must invest in the resilience of the system.”
The head of the French oil company added: “The fact that there are currently not enough export routes from the Strait of Hormuz is a fundamental problem. We must consider resilience as an investment—possibly in new pipelines to build a pipeline network.”