Shell Chief Executive Wael Sawan said oil and gas prices may remain supported even after tensions around Iran and the Persian Gulf ease, according to The Wall Street Journal. Speaking at the WSJ Leadership Institute CEO Summit, Sawan said longer-term demand growth and the rising difficulty of finding new low-cost reserves could keep upward pressure on energy prices over the next five to ten years.
The comments come as global energy markets continue to track supply conditions, inventory levels, and shipping access in the Middle East. Sawan indicated that while current supply is meeting demand, maintaining that balance may become more challenging as countries place greater emphasis on energy security. He also noted that higher pricing could encourage producers to develop resources that may not have been economical at lower price levels.
For investors and mineral owners, the outlook matters because benchmark energy prices can influence revenue expectations, asset values, and commodity price assumptions. Ranger readers may also want to review how prices can affect wellhead price calculations and royalty-related income.
Source: The Wall Street Journal
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