ADNOC CEO: World Has Drawn 1 Billion Barrels from Oil Reserves Since 'Hormuz' Crisis Began

The UAE Minister of Industry and Advanced Technology, Managing Director and Chief Executive Officer of the ADNOC Group, Sultan Al Jaber, stated that navigation disruptions in the Strait of Hormuz have depleted approximately one billion barrels of global oil reserves, noting that logistics and shipping costs have risen to 30% of the barrel’s cost, compared to 5% prior to the Iran war.

Speaking at the opening of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC 2026), Al Jaber said the world has drawn down about one billion barrels from reserves since the disruption of shipping traffic in the Strait of Hormuz, while diesel inventories in some markets have fallen to their lowest seasonal levels in 35 years, and other markets are facing a liquefied natural gas (LNG) supply gap of 600 billion cubic feet.

He added that the energy sector had spent years optimizing supply chains based on just-in-time principles, but is now facing the cost of not maintaining sufficient safety margins to handle crises.

Al Jaber argued that this year’s disruptions demonstrated that ensuring production availability is no longer sufficient to guarantee energy security, as shipping routes and logistics have become critical factors in delivering oil and gas to consumers. He noted that the world has exhausted its available reserves meant to cushion supply disruptions, emphasizing that the problem is not limited to the volume of supply, but also encompasses the ability to transport it to markets in need.

He pointed out that energy security, long a topic discussed primarily by specialists, has now become a concern for households, businesses, and industrial sectors, given the widening impact of supply disruptions on the global economy.

Al Jaber called for learning from the lessons of the crisis, building capabilities and the necessary support structures, and forging resilient partnerships capable of withstanding critical periods.