The gap between supply and demand is widening as global energy systems face strain, Guyana's President Irfaan Ali said on Monday, as the Iran war enters its third month and continues to drive up oil and gas prices amid supply shortages.
Energy markets have been reeling since the start of the war, which has caused damage to infrastructure across the Middle East and led to the effective closure of the Strait of Hormuz, a key trade chokepoint. Oil prices have climbed above $100 a barrel and global trade flows have shifted as some nations scramble to secure supply.
Guyana has emerged as a bigger player in the global energy market following the development of its offshore oilfields in recent years. Exxon Mobil, which leads a production consortium there, has boosted output capacity to over 900,000 barrels per day since it began producing crude in the South American country in 2019.
"We must view the reality of our world in this transition," Ali said at a conference in Houston, Texas. He added that the current energy system lacks enough investment to meet the current pace of demand, noting that renewable energy will not be enough to fill supply gaps.
(Reporting by Nathan Crooks in Houston; Writing by Liz Hampton in Denver; Editing by Nick Zieminski and Nia Williams)
