CNOOC expects oil prices to remain limited between $75 and $85

• CNOOC expects oil prices to remain between $75 and $85 per barrel for the rest of 2024.
• The company reported record interim profits due to increased oil and gas production, exceeding $11 billion.
• CNOOC prioritizes fossil fuels, especially natural gas, as they are essential to China’s energy stability despite the trend towards renewable energy.

China’s CNOOC Ltd. predicts oil prices will remain between $75 and $85 per barrel in the second half of 2024, in line with current market trends. Brent crude is currently trading at $79.51 a barrel, up $0.86 (+1.09%) on the day. CNOOC, one of China’s largest offshore oil and gas producers, believes fossil fuels are essential to global energy stability in the near 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, an increase of 3 percent to 6 percent from last year’s levels. This production increase is part of CNOOC’s strategy to capitalize on growing demand for fossil fuels, particularly natural gas, which is expected to 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 company has already discovered approximately 11.6 billion barrels of oil and gas.

On Wednesday, CNOOC reported interim earnings of $11.2 billion – a record net profit. While that’s just below PetroChina’s $12.4 billion, it’s more than double that of Sinopec, Asia’s biggest refining giant. The company has set its 2024 capital spending target at 125-135 billion yuan ($18-19 billion).

Record oil and gas production was the key driver of CNOOC’s record profit for the first half of the year. Net production rose 9.3 percent year-on-year to 362.6 million barrels of oil equivalent (BOE), “reaching an all-time high,” CNOOC said.

The oil and gas giant has continued to increase exploration activity, reserves and production under instructions from Chinese authorities, which told the state-owned energy giants several years ago to boost domestic oil and gas production to bolster China’s energy security .

By Julianne Geiger for Oilprice.com

More top reads from Oilprice.com