Energy conference kicks off as Ukraine conflict puts oil market in turmoil

HOUSTON: The world’s biggest gathering of energy industry leaders kicked off in Houston Monday, as Russia’s invasion of Ukraine delivers an oil price shock to the global economy and embattled executives face growing criticism for the industry’s role in climate change.

Global oil prices have reached levels not seen since the 2008 financial crisis as disruption to crude and fuel exports from Russia has left the world short of supply, threatening the biggest disruption in energy markets worldwide in decades - one that oil producers say requires a swift response.

“Everybody that is an oil producer has to accelerate efforts to bring more oil to the market,” Hess Chief Executive John Hess said at a panel.

This year’s CERAWeek was expected to attract more than 4,500 attendees, with a program drawn up long before Moscow’s invasion of Ukraine focused on the energy transition, with numerous panels centered around hydrogen and carbon capture.

“CERAWeek was planned to discuss the energy transition, renewables, hydrogen... the future. But we were thrown back to the last century, discussing oil supply,” said Ricardo Savini, chief executive officer of Brazilian oil company 3R Petroleum.

Russia’s invasion was addressed by several speakers, beginning with U.S. climate envoy John Kerry, who addressed the invasion, calling Russia’s actions “abhorrent.”