Chevron flies to Midland the week Mike Wirth warns of physical oil shortages

Chevron flew from Sugar Land Regional Airport to Midland International Air and Space Port on May 19, a one-hour-30-minute hop in its Boeing Business Jet, N884GL. The destination, Midland, sits at the heart of the Permian Basin, where Chevron operates some of its highest-margin, lowest-cost production wells.

The same week, Chevron chief executive Mike Wirth told a Milken Institute conference that global physical oil shortages are beginning, warning that “demand needs to move to meet supply” and “economies are going to have to slow,” as reported by the Motley Fool and energyconnects.com. The Strait of Hormuz remains disrupted following the US-Israel conflict with Iran, choking off 20% of the world’s crude supply. Chevron itself reported first-quarter earnings of $2.2 billion on May 1, with adjusted earnings of $2.8 billion, while signaling it would continue prioritizing short-cycle, high-return projects in the Permian and Guyana.

The Midland flight fits a pattern. Recent flights show Chevron’s BBJ shuttling frequently between Houston-area airports and the Permian — including trips on May 14, May 18, and now May 19 — underscoring the company’s focus on its core U.S. production assets as global supply chains tighten.