Global oil majors are accelerating investments in new drilling prospects outside the Middle East as geopolitical instability reshapes energy strategy, The Wall Street Journal writes.
Companies, including ExxonMobil, Chevron, BP and TotalEnergies, are directing billions toward projects in Africa, South America and the eastern Mediterranean to reduce exposure to conflict-driven disruptions tied to Iran.
The shift comes as war in the region has strained supply chains, threatened key infrastructure and created volatility around the Strait of Hormuz, a critical oil transit chokepoint. At the same time, higher oil prices—recently hovering near $88 a barrel—are boosting cash flows and enabling companies to revive exploration efforts that had been scaled back in recent years.
Executives are balancing near-term production gains with longer-term reserve replacement, as global demand is expected to require hundreds of billions of additional barrels by midcentury. While governments are encouraging increased output, companies are prioritizing geographic diversification to spread risk and secure future supply.
