Chevron flies to Midland as CEO warns of oil shortages from Hormuz closure

Chevron Corporation operated its Boeing Business Jet, tail number N884GL, from Sugar Land Regional Airport to Midland International Air and Space Port on May 18, a one-hour-23-minute hop. The flight lands in the heart of the Permian Basin, where Chevron has been ramping up production—its U.S. output exceeded 2 million oil-equivalent barrels per day for the third straight quarter, per its first-quarter earnings report [sec.gov].

That same week, Chevron Chairman and CEO Mike Wirth told a Milken Institute conference that physical oil shortages would begin appearing due to the continued closure of the Strait of Hormuz, warning that “economies are going to have to slow” as supply adjusts [fool.com]. He said Asian markets would be hit first, then Europe, though the U.S. is less exposed [energyconnects.com]. The context: global oil stocks have fallen to eight-year lows, and jet fuel prices have surged, helping to push budget carrier Spirit Airlines out of business last weekend.

The Midland trip appears to be part of a familiar pattern. Recent flight logs show the BBJ and other Chevron aircraft shuttling between Houston-area airports and the Permian multiple times in the preceding days—suggesting senior leadership is closely overseeing operations in the basin as the company works to maximize production amid the supply crisis.