WSJ: Iranian strikes on Qatar energy assets cost billions in lost revenue

Iranian missiles struck Qatar’s Pearl gas-to-liquids facility, severely damaging one of Shell Plc’s crown jewels and knocking out one of its two production lines for at least a year, The Wall Street Journal (WSJ) reports.

The $20 billion plant, the world’s largest gas-to-liquid operation, is a top-performing asset for the U.K. oil giant and personally tied to CEO Wael Sawan, who oversaw its planning and construction.

The attack highlights how Western oil companies, long betting on Middle East partnerships, are now exposed to escalating geopolitical risks. Exxon Mobil, which generates roughly 20% of its oil and gas from the Middle East, faces an estimated $5 billion annual revenue loss.

Shell, TotalEnergies, Chevron, ConocoPhillips, and Occidental Petroleum all hold significant stakes in the region, from Qatar’s North Field to gas fields in the UAE and off Israel’s coast.

Despite the disruption, soaring oil prices have boosted stock values. Exxon shares have climbed 5%, Shell 9%, and ConocoPhillips 12% since the conflict began. Analysts warn, however, that companies may need to rethink overseas investment strategies in light of mounting geopolitical risks.

“This has been a cash cow for U.S. international oil companies,” said Jim Krane, energy specialist at Rice University’s Baker Institute. “It’s intensely frustrating. They’re going to have to rebuild, often at insanely high expense.”

With Qatar being the world’s second-largest LNG supplier, the strike on Pearl threatens energy markets globally, especially as demand for natural gas is expected to rise even amid a global push for cleaner fuels.

The attack underscores the fragility of critical energy infrastructure in a region increasingly at the centre of international tensions, forcing oil majors to balance profits against risk in a volatile geopolitical landscape.

By Aghakazim Guliyev