Those comments were made during panel discussions at CERAWeek by S&P Global, an annual energy conference taking place in Houston this week. Some CEOs used the platform to urge swift action to shore up turbulent energy markets in light of Russia's invasion of Ukraine.
John Hess, CEO of Hess Corp., told the audience that energy security has to be paramount at this point in the conflict.
"The oil market was already tight going into the Ukraine crisis," he said, noting difficulties in catching up to demand as the world emerges from coronavirus restrictions. "There's no cushion in the system as we get more interruptions from Russia."
Hess told the crowd that the recent commitment by the International Energy Agency to release 60 million barrels of oil from emergency reserves in response to Russia's invasion of Ukraine was "too little."
"This is an emergency," he said. "It's time the IEA and the U.S. release 120 million barrels from the strategic reserves and commit to do another 120 million next month."
While applauding the swift action by the Federal Reserve in lowering interest rates during the economic recession brought on by the pandemic, Hess said the current crisis also requires immediate action and said stakeholders need to "move quickly now to stabilize energy markets."
Tengku Muhammad Taufik, president and Group CEO of Malaysia's state-run energy company Petronas, doubled down on the comments from Hess, calling the current state of the energy market "absolute bedlam."
"It's not smooth," he said. "It's bedlam. It's chaos. There are no fundamentals now driving the market. I agree with John, we need to ensure energy security is addressed immediately."
Taufik said "there's a mirage that there's spare capacity to be brought out."
The current state of the energy market shows "the turbulence has already begun," said Jack Fusco, president and CEO of Cheniere Energy, the largest exporter of liquefied natural gas in the United States, noting that his company has sold out of planned production through 2040.
Maximizing production is a current priority across the industry, said Darren Woods, chairman and CEO of ExxonMobil Corp., noting that Russia's invasion of Ukraine "complicates that even further."
"It's going to be a tough time," he said in response to a question about the potential for stabilizing the energy markets.
--Editing by Nicole Bleier.
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