Hormuz squeeze becomes Americas’ oil bonanza

According to Mettis Global, the war in Iran is fuelling a surge in oil and gas output across the Americas as buyers seek reliable supply. Rystad Energy expects crude output across North and South America to climb 10% over the two years to December 2026, with Canada and Brazil both posting record production this year. US crude and refined product exports to Europe, Asia and Oceania climbed 15%.

A Financial Times report cited by Mettis Global says the conflict, now in its seventh month, is pulling parts of the Americas, notably Venezuela and Argentina, into what President Donald Trump has termed the Donroe doctrine, a US-led sphere of influence. Attacks on oil facilities and tankers in the Strait of Hormuz have cost global markets over 2bn barrels of crude. Argentina's total exports climbed past $10bn in September, and TotalEnergies has pledged $10bn for new offshore and onshore gas projects.

Chevron has lifted output at El Trapial shale field to 40,000 barrels of oil equivalent a day, up from 5,000 three years earlier, and plans to spend $13.8bn there in the coming decade. Chevron's Argentina country manager, Ana Simonato, said the Middle East conflict has highlighted the value of strategic diversification. Venezuela's output is now about 1.2mn bpd after a 10% rise this year.