Michael Wirth on commodity cycles
From Chevron CEO Mike Wirth Talks Oil Prices, Hormuz, Venezuela | Bloomberg Talks · · Bloomberg Podcasts
“Well, history says that shortages tend to be followed by gluts and high prices send a signal and markets work. Consumers consume less, producers produce more in response to a price signal and there's a time lag in the way both of those manifest themselves in the market. And what has happened historically is about the time that the new supplies reach the market demand may have turned down through conservation measures, economic slowdown, maybe a recession and you can see those lines cross over and the price cycles down. It's why commodity markets are cyclical is they tend to overshoot and history says when we get into one of these situations that is somewhere out in the future.”
On , Michael Wirth, Chairman & Chief Executive Officer at Chevron Corp, spoke about commodity cycles during Chevron CEO Mike Wirth Talks Oil Prices, Hormuz, Venezuela | Bloomberg Talks on Bloomberg Podcasts.
About Michael Wirth
In recent public appearances, Chevron CEO Michael Wirth has focused on the impact of the ongoing closure of the Strait of Hormuz on global energy markets. He stated that approximately 20% of the world's oil and liquefied natural gas supply transits through the strait, and that its disruption has placed the global energy system under "extreme stress." Wirth said that global inventories and strategic reserves are being drawn down, which he described as a concern, and that the U.S. cannot make up all of the lost supply. He noted that Chevron has slowed some production in Kuwait and Saudi Arabia due to an inability to evacuate crude and that storage is filling. Wirth warned of upward price pressure and the risk of supply outages in Europe and Asia, citing canceled flights in Europe due to tight jet fuel supplies. Wirth also discussed Chevron's operational performance and strategy. He said the company reported strong first-quarter 2026 earnings that exceeded analyst expectations, attributing the results to strong U.S. production and record refinery runs. He stated that Chevron plans to grow global production by 7 to 10% in 2026, a rate he said exceeds projected global demand growth of about 2%. On Venezuela, Wirth said Chevron is committed to the country but needs more policy clarity on taxes and royalties before committing new capital. He also criticized California's energy policies, saying that a decline in the state's refining capacity has constrained supply. In a podcast launched by Chevron, Wirth discussed the role of different energy technologies and said that markets are efficient at finding the best application for each technology.