Shell CEO Wael Sawan told a Wall Street Journal conference that oil prices are headed higher over the long term, even after the Middle East conflict ends. He points to shrinking output from aging fields and steady global demand as the drivers.
Oil prices are headed higher over the long term, Shell CEO Wael Sawan said at a Wall Street Journal conference, even after the Middle East conflict ends. His case rests on a widening gap between falling supply and steady demand, not on the region's daily headlines.
Demand for oil and natural gas together made up 32% of global energy demand in 2025, according to the International Energy Agency, and grew even as clean energy expanded. At the same time, output from existing fields is falling 5% to 7% a year as reserves deplete, Shell says. That combination of steady demand and shrinking supply is a classic supply and demand setup that tends to push prices higher over time.
Investors have focused on the Middle East conflict's daily swings in energy prices, but Sawan argues that noise obscures the bigger structural story. Shell believes oil, gas and renewables will all be needed together to meet global energy demand, since clean energy alone is unlikely to close the gap.
Exxon has raised its dividend every year for 43 years and now yields 2.6%. Chevron's streak stands at 38 years, with a 3.7% yield. Shell cut its payout in 2020 while shifting toward clean energy, but the dividend is growing again as the company refocuses on oil, and the stock now yields 3.6%. TotalEnergies never cut its dividend and yields around 5%, even as it keeps expanding into renewables.
Shell shares rose 1.62% to $91.98. Chevron gained 2.35% to $196.83. Exxon slipped 0.97% to $155.44.
Source: Motley Fool
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