Chevron Eyes New Pipeline Route to Bypass Strait of Hormuz

Chevron's CEO Mike Wirth is exploring a new pipeline route to reduce the company's reliance on the Strait of Hormuz, a critical shipping lane in the Middle East. The idea involves building a cross-border pipeline that would carry crude oil from Iraq through Syria or Turkey and into the Mediterranean Sea.

The project aims to diversify Chevron's supply chain and mitigate the risks associated with disruptions in the region. Wirth explained that the Strait of Hormuz is a key chokepoint, with around 20% of global oil shipments passing through it.

During an earnings call on July 31, Wirth mentioned the pipeline concept as part of Chevron's efforts to develop its operations in Iraq. He noted that the company has established a framework for evaluating the project and is working closely with Iraqi officials to move forward.

The pipeline idea is part of a broader effort by Chevron to reduce single-point supply risk and create a more resilient energy system. Wirth has stated that he believes countries will prioritize having insurance policies or reserves in place to mitigate disruptions like those experienced this year.