China’s CNOOC Ltd. projects that oil prices will remain within the $75 to $85 per barrel range for the second half of 2024, reflecting current market trends. Brent crude is trading at $79.51 per barrel, up $0.86 or 1.09% on the day.
CNOOC, a major offshore oil and gas producer in China, believes that fossil fuels will remain vital for global energy stability in the near future. This outlook persists despite the global shift towards renewable energy, according to company executives.
The state-owned company anticipates producing between 700 million and 720 million barrels of oil equivalent (boe) this year. This represents a 3% to 6% increase from last year’s figures. This production boost aligns with CNOOC’s strategy to meet rising demand for fossil fuels, especially natural gas, which the company expects to grow robustly in China through 2030, as reported by Reuters.
A key component of CNOOC’s production strategy is its involvement in the Exxon Mobil-led Stabroek offshore Guyana joint venture. This venture has already identified an estimated 11.6 billion barrels of oil and gas.
On Wednesday, CNOOC announced record interim earnings of $11.2 billion, marking its highest net profit to date. While this figure is slightly below PetroChina’s $12.4 billion, it exceeds Sinopec’s profits, making it more than double those of Asia’s largest refining company. CNOOC has set its 2024 capital expenditure target between 125 billion and 135 billion yuan ($18 billion to $19 billion).
The company’s record profit for the first half of the year was driven by unprecedented oil and gas production. Net production increased by 9.3% year-over-year, reaching 362.6 million barrels of oil equivalent (BOE), a historic high for CNOOC.
CNOOC has continued to expand its exploration, reserves, and production activities as directed by Chinese authorities, who have urged state energy companies to enhance domestic oil and gas production to strengthen China’s energy security.