Energy and Oil Sector

CNOOC posted a record first-half net profit of 85.8 billion yuan, driven by higher crude prices following the Iran war and increased domestic output. Net profit jumped 23.4% from a year earlier, while oil and gas sales revenue climbed 20% to 206.1 billion yuan. The company's average realized oil price rose 23.6% to $85.49 per barrel during the period. Net oil and gas production rose 3.7% to a record 398.7 million barrels of oil equivalent, with 275.2 million boe produced domestically as Beijing pushes to reduce reliance on imported energy. CNOOC's all-in cost reached $29.70 per boe, leaving wide margins despite rising expenses. The company maintained its full-year production target of 780 million to 800 million boe and capital spending guidance of 112 billion to 122 billion yuan.

Crude oil prices fell as the United States pivoted toward economic sanctions rather than military strikes to pressure Iran, easing fears of supply disruptions in the Middle East. International benchmark Brent crude futures dropped 3.9% to close at $88.58 per barrel, while U.S. West Texas Intermediate lost 3.1% to settle at $82.36 a barrel. The downward pressure deepened as Iran and Oman renewed talks to establish a joint temporary shipping route and clear mines in the Strait of Hormuz. Treasury Secretary Scott Bessent described the administration's actions as an economic D-Day designed to avert a large-scale military conflict. Meanwhile, tanker tracking data from Windward showed only a single Barbados-flagged LPG carrier traversing the crucial waterway over a 24-hour period.

oilprice.com reports that geopolitical conflicts across the Middle East, Ukraine, and other regions affect 45 million barrels per day of global oil supply, representing nearly half of world production. Middle Eastern disruptions have removed an estimated 5 to 7 million barrels per day from the market, while Ukrainian drone strikes on Russian refineries have constrained fuel supplies from the world's second-largest fuel exporter. European diesel prices have surged 70% above February levels amid shrinking global refining capacity. Meanwhile, seasonal maintenance in September is expected to reduce Canadian crude oil production by 300,000 barrels daily, and Venezuelan exports fell to 1.16 million barrels per day in July from 1.2 million in June.

oilprice.com reports that Equinor plans to expand its international oil and gas production from 750,000 barrels of oil equivalent per day to 950,000 boepd by 2030. The 27% growth target relies on concentrated capital deployment in the U.S., Brazil, and Angola, supported by deepwater assets including the Shell-operated Sparta project in the Gulf of Mexico, Bacalhau and Raia in Brazil, and Greater PAJ in Angola. Executive vice president Philippe Mathieu outlined the strategy at the Offshore Northern Seas conference in Stavanger, noting that international cash flow is projected to surge by approximately 80% over the same period. The company has high-graded its overseas portfolio by exiting legacy markets in Azerbaijan and Nigeria, allowing U.S. output to reach 433,000 boepd in the second quarter of 2026.

theguardian.com reports that plug-in balcony solar panels will go on sale in the UK for the first time from Thursday, allowing households without roof access to generate their own renewable electricity. Argos is the first retailer to stock the DIY solar systems, with Amazon, Currys, B&Q, and Screwfix expected to offer them within weeks at prices ranging from about £400 to £500. The 800-watt systems plug directly into standard wall sockets to power appliances and reduce reliance on grid electricity. Buyers must register the systems with Great Britain's National Energy System Operator to track cumulative impacts on gas-fired power and imports. The installations could save the average household up to £110 annually, though savings depend on weather, panel orientation, and real-time electricity consumption since plug-in batteries were excluded from the new legislation. Consumers may also require planning permission or building owner consent before purchasing.

Oilprice.com reports that Octopus Energy CEO Greg Jackson is calling for urgent UK power-market reform to shield households from volatile global gas prices. Ofgem is raising its energy price cap by 4% to £1,723 in October, while Cornwall Insight forecasts a further 9% increase to £1,872 in January. Jackson attributes the squeeze to an unprecedented double crisis from the Ukraine and Iran wars, which he says has more than doubled gas prices since the start of the year. He urges the government to exploit cheap wind power more effectively and support new North Sea drilling to bolster energy security. Prime Minister Andy Burnham has reportedly delayed his decision on the Rosebank and Jackdaw gasfields until the autumn amid concerns over approving new drilling during extreme summer weather. Meanwhile, shadow environment secretary Victoria Atkins criticized the rising bills as broken promises that will cause severe hardship for households.

Mining.com reports that the U.S. Department of Energy's Office of Critical Minerals and Energy Innovation awarded $10 million on Wednesday to seven projects aimed at accelerating early-stage research for critical material recovery and refinement. Led by the Critical Materials Innovation Hub, the funding targets rare earth elements, gallium, and copper. Three of the selected initiatives focus on extracting gallium from industrial streams like bauxite-alumina processing and zinc refinery residues to expand domestic supply without opening new mines. Selectees include Case Western Reserve University, Colorado School of Mines, and the University of Arizona, alongside private sector participants such as FAST Metals and Indium Corporation. Assistant Secretary of Energy Audrey Robertson stated the work will strengthen domestic supply chains for American manufacturers.

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