China's CNOOC Ltd. predicts that oil prices will remain between $75 and $85 per barrel for the second half of 2024, in line with current market trends. Brent crude is currently trading at $79.51 per barrel, up $0.86 (+1.09%) on the day. CNOOC, one of China's leading offshore oil and gas producers, sees fossil fuels as crucial for global energy stability in the foreseeable future, despite the global push towards renewable energy sources, according to CNOOC executives.
The state-owned company expects to produce between 700 million and 720 million barrels of oil equivalent (boe) this year, a 3% to 6% increase over last year's levels. This increase in output is part of CNOOC's strategy to capitalize on the growing demand for fossil fuels, particularly natural gas, which it expects will see strong growth domestically through 2030, Reuters reported on Thursday.
CNOOC's involvement in the Exxon Mobil-led Stabroek offshore Guyana joint venture remains a cornerstone of its production strategy. To date, the venture has already uncovered an estimated 11.6 billion barrels of oil and gas.
On Wednesday, CNOOC reported interim earnings of $11.2 billion—a record-high net profit. While slightly below PetroChina's $12.4 billion, it is more than double those of Sinopec, Asia's largest refining giant. The company has set its 2024 capital expenditure target at 125 billion to 135 billion yuan ($18 billion to $19 billion).
Record-high oil and gas production was the key driver of CNOOC's record-high profit for the first half of the year. Net production rose by 9.3% year-over-year to 362.6 million barrels of oil equivalent (BOE)—"hitting a historic high," CNOOC said.
The oil and gas giant continued to raise exploration activity, reserves, and production as directed by the Chinese authorities, which told the state energy giants a few years ago to boost domestic oil and gas production to bolster China's energy security.
By Julianne Geiger for Oilprice.com
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