Shell, Aramco heads warn of gas, oil supply squeeze

Shell, Aramco heads warn of gas, oil supply squeeze

The lack of fungibility of the gas market is set to pose a major challenge for Europe in the near term, the heads of Saudi Aramco and Shell agreed today.

Aramco’s Amin Nasser was relatively sanguine on the prospects of oil. “Crude is fungible, it will shift to where it is needed. The issue for Europe is gas and LNG. There’s no spare capacity, it is all under long-term contracts, no one can step up and meet the additional demand,” Nasser told the opening session of the Energy Intelligence Forum.

Shell CEO Ben van Beurden echoed Nasser’s concerns.