CNOOC Affirms Fossil Fuels’ Role in Global Energy Future, Sets Record Output Target for 2024
China’s state-run offshore oil and gas giant, CNOOC Ltd, has reinforced its commitment to fossil fuels as a stabilizing factor in global energy demand for the foreseeable future. During an earnings briefing on Thursday, the company announced an ambitious production target of 700 to 720 million barrels of oil equivalent for 2024, marking a 3% to 6% increase over last year’s output.
CNOOC‘s Chief Executive, Zhou Xinhuai, highlighted the company’s strategic focus on maintaining robust natural gas production domestically, which is expected to see strong growth through 2030. Zhou also emphasized the company’s readiness to capitalize on vast gas resources discovered in Guyana, where CNOOC is part of the ExxonMobil-led Stabroek offshore joint venture that has identified approximately 11.6 billion barrels of oil and gas.
Related Posts
The company’s exploration strategy includes potential large discoveries in Iraq’s Block 7, which was recently awarded to CNOOC. Zhou noted that thorough appraisals are necessary to fully understand the reserve potential of the block.
In addition to its focus on fossil fuels, CNOOC is also investing in new energy projects with significant cost advantages. A key example is the commissioning of the world’s first 5-megawatt offshore high-temperature flue gas waste heat power plant.
CNOOC expects oil prices to remain within the $75 to $85 per barrel range in the second half of 2024. The company has set its annual capital expenditure target between 125 billion yuan and 135 billion yuan ($18 billion to $19 billion), slightly lower than last year’s 129.6 billion yuan.
Zhou reiterated CNOOC’s commitment to selecting high-quality global assets while continuing to expand its presence in the energy sector, balancing traditional fossil fuel projects with innovative new energy investments.
