In a contentious move, the government led by Rishi Sunak will permit fossil fuel companies to explore for oil and gas beneath offshore wind-power sites. The North Sea Transition Authority (NSTA) will grant licenses to approximately 30 companies to search for hydrocarbons in areas designated for future offshore wind farms.

This decision has sparked renewed criticism from environmentalists, including the government’s former net zero champion, who fear it could undermine clean energy efforts. While proponents argue that any production could utilize wind turbine power to reduce emissions, experts caution that the environmental impact of burning extracted oil and gas will outweigh any benefits. The announcement is expected to dent investor confidence in the UK’s green energy sector, with offshore wind investors expressing concern.

Sunak’s policy rollbacks, aimed at lowering energy costs and enhancing security, have faced criticism for potentially politicizing climate issues ahead of the upcoming general election.

Analysts from Standard Chartered Bank emphasize the significance of May and June in shaping oil market fundamentals for the first half of 2024. These months are forecasted to witness a substantial tightening compared to previous years, with global stock draws expected to reach 189 million barrels.

Key to this trend is the anticipated surge in demand, set to hit record highs during these months. The analysts stress the need for close monitoring to assess market tightening accurately. Additionally, insights into OPEC+ decisions depend heavily on understanding the fundamentals of May and June. Meanwhile, analysts at Morningstar DBRS note stronger-than-expected oil demand in 2024, cautioning against potential disruptions from geopolitical conflicts.

They project eventual moderation in oil prices but highlight ongoing risks.

Vår Energi ASA has announced a significant oil discovery in the Balder area of the Central North Sea. The company’s latest exploration well in production license PL 956, the Ringhorne North well, was successful, with estimated recoverable resources ranging from 13 million to 23 million barrels of oil. Drilled by the semi-submersible rig Deepsea Yantai, the Ringhorne North well and two additional side-track/appraisal wells are located five miles (eight kilometers) north of the Vår Energi-operated Ringhorne field, approximately 124 miles (200 kilometers) northwest of Stavanger.

Vår Energi considers this discovery a potential commercial candidate for tie-in to nearby existing infrastructure in the Balder area. The company’s COO, Torger Rød, highlighted the success of their near-field exploration strategy and emphasized the potential for further value creation in the Balder area. Rune Oldervoll, EVP for Exploration and Production at Vår Energi, reiterated the company’s commitment to exploring for further resources, leveraging both their experienced team and the expertise of major shareholder Eni. The discovery not only unlocks new resources and extends the Ringhorne field but also de-risks additional prospects in the area and offers development synergies with other nearby Vår Energi-operated discoveries such as King-Prince and Evra-Iving.

Furthermore, the discovery supports the long-term development plans for the Balder area as a key production hub in the North Sea, contributing to Vår Energi’s goal of producing high-value, low-emission barrels for years to come. The license partners for PL 956 include Vår Energi (50%), Aker BP ASA (20%), Harbour Energy Norge AS (15%), and Sval Energi AS (15%). Vår Energi also highlighted its impressive discovery rate of over 50% in the past five years, with costs of less than $1 per barrel post-tax.

BP Plc has implemented a top management restructuring, allowing new Chief Executive Officer Murray Auchincloss to make his mark on the oil and gas giant as some executives depart. In an effort to simplify the organizational structure and enhance the company’s value, the executive leadership team will be reduced to 10 members, according to a statement released on Thursday.

William Lin, former head of regions, corporates, and solutions, will succeed Anja-Isabel Dotzenrath as the leader of natural gas and low-carbon energy, who is retiring. Auchincloss emphasized, “We need to deliver as a simpler, more focused, and higher value company.” He believes that these changes will enable BP to achieve this goal. Emeka Emembolu will assume leadership of BP’s technology division, succeeding Leigh-Ann Russell, who is departing the company, according to the statement. BP will maintain three primary business units: production and operations led by Gordon Birrell; gas and low-carbon energy led by Lin; and customers and products led by Emma Delaney. These divisions will continue collaborating with trading and shipping, overseen by Carol Howle.

Supporting these business units are five functions: finance under the leadership of Kate Thomson; technology led by Emembolu; strategy, sustainability, and ventures managed by Giulia Chierchia; people and culture overseen by Kerry Dryburgh; and legal led by Mike Sosso. The company’s regions, corporates, and solutions organization will be integrated into these businesses and functions, as outlined in the statement.

Methane emissions along the Oil & Gas production chain have garnered significant attention in the international climate debate due to their high climate-altering potential and the technical-economic feasibility of reducing emissions in the short and medium term.

The main sources of methane emissions stem from unintentional releases into the atmosphere (i.e., fugitive emissions), unburned fractions present in flare gas and exhaust gases from combustion systems, and venting. Eni confirms the stability of Upstream emission intensity below 0.2%, in line with the “well below 0.2%” target of the Oil and Gas Climate Initiative (OGCI) by 2025, which Eni has already achieved. This is achieved by focusing particularly on reducing fugitive emissions and through projects for methane abatement from venting and flaring. Eni’s methane emissions have decreased by over 50% in 2022 compared to 2018, primarily due to the implementation of Leak Detection And Repair (LDAR) campaigns in almost all Eni-operated assets. In 2022, Eni has contributed to launching the Aiming for Zero Methane Emissions initiative with OGCI, which now has over 90 participating companies.

To ensure greater transparency in methane emission reporting, the company is implementing a measurement plan at their operated sites using the best available technologies on the market, in line with international guidelines shared in the OGMP 2.0 program. This campaign will also allow Eni to set a new emission reduction target for 2024. In 2023, Eni achieved the Gold Standard, recognition obtained for presenting a robust implementation plan for emission reporting in line with the OGMP 2.0 program.

China Petroleum & Chemical Corporation (Sinopec) has achieved a significant milestone by completing the drilling of the Fushen-1 Well in Hainan, marking the deepest geothermal exploration well in China at a depth of 5,200 meters. This achievement not only uncovers the deep geothermal formation and enrichment processes in South China but also marks a significant advancement in the exploration of hot dry rock, both in terms of geographical scope and depth. This breakthrough is pivotal for the large-scale development and utilization of geothermal resources in South China, contributing to the adjustment of the energy structure. The Fushen-1 Well targets granite formations estimated to be 250 million years old.

Since the commencement of the exploration in August 2023, Sinopec has implemented several proprietary innovative technologies. These include a dual-drive drilling technique combined with high-pressure injection, enabling the team to reach the temperature limits for hot dry rock as defined by national energy industry standards. This exploration has led to the development of key technologies for the detection and evaluation of deep geothermal resources. Moving forward, Sinopec plans to conduct comprehensive research and field tests at the Fushen-1 Well. The aim is to establish South China’s first integrated platform for deep geothermal research, education, and experimentation. This initiative will support the development of theoretical methods and technical systems tailored to the region, aiding China in achieving its “Dual-Carbon” objectives. Deep geothermal energy, recognized for its stability, reliability, and ecofriendly nature, represents a promising avenue for renewable energy development. With vast reserves and widespread availability, deep geothermal energy is a significant, environmentally friendly resource. Geological surveys in China estimate that the hot dry rock geothermal resources within a depth range of 3 to 10,000 meters could equate to 856 trillion tons of standard coal. Extracting just 2% of these resources could fulfill China’s annual energy consumption over 2,993 times as of 2023. Sinopec is dedicated to leading the development and utilization of geothermal energy in China.

The company has already achieved a geothermal heating capacity of nearly 100 million square meters and operates several large-scale regional geothermal heating projects. Through its efforts, Sinopec has developed a series of core technologies for efficient exploration and has contributed to over 50% of the industry standards, including China’s first international geothermal association standard. In 2023, Sinopec also hosted the 7th World Geothermal Congress (WGC2023) in Beijing, underscoring its commitment to advancing geothermal energy development.

Petrobras, the Brazilian state-run oil giant, has made a significant oil discovery in the ultra-deep waters of the Potiguar Basin, located along the Brazilian Equatorial Margin. This discovery was made at the Anhangá exploratory well, identified as 1-BRSA-1390-RNS, within the POT-M-762_R15 Concession. Positioned near the boundary of the Ceará and Rio Grande do Norte states, the well is approximately 118 miles from Fortaleza and 155 miles from Natal, with a depth reaching 7,205 feet. This marks the second discovery in the Potiguar Basin for the year 2024, following the earlier identification of hydrocarbons in the Pitu Oeste Well within the BM-POT-17 Concession, merely 15 miles from Anhangá.

Petrobras, which operates and fully owns both concessions, has indicated that further evaluations are necessary to fully assess these findings. The company’s exploratory efforts in the Equatorial Margin are part of its broader strategy to replenish reserves and explore new frontiers, ensuring the fulfillment of global energy demands throughout the ongoing energy transition. The discovery of oil in Albian-age turbidite reservoirs within the Potiguar Basin is hailed as a groundbreaking achievement for the region. Petrobras plans to continue its exploration in the POT-M-762_R15 concession to determine the quality of the reservoirs, the characteristics of the oil, and the potential commercial viability of the discovered accumulation. Petrobras CEO, Jean Paul Prates, highlighted the company’s impeccable safety record in drilling almost 3,000 wells in deep and ultra-deepwater environments, underscoring its technical prowess and environmental stewardship over nearly seven decades. Joelson Mendes, Petrobras Exploration and Production Director, emphasized the strategic importance of the Equatorial Margin as a promising new frontier that is crucial for Brazil’s future oil supply and development.

The company has announced plans to invest $7.5 billion in exploration activities by 2028, with $3.1 billion allocated for the Equatorial Margin. This investment strategy includes drilling 50 new exploratory wells, 16 of which will be in the Equatorial Margin. Petrobras is also expanding its exploration footprint beyond Brazil, with recent acquisitions in the Pelotas Basin and stakes in exploratory blocks in São Tomé and Príncipe. This exploration expansion aligns with Petrobras’ strategic goals of maximizing portfolio value, replenishing oil and gas reserves, boosting natural gas supplies, and advancing the decarbonization of its operations. In 2023, the company reported its second-highest annual net income of $24.9 billion, with plans to distribute 58.1 percent of this amount as dividends, reflecting a robust financial performance and commitment to shareholder value.

The Dogger Bank Wind Farm is gearing up for a significant phase of construction and commissioning activities, with the arrival of key installation vessels at the project site. The Saipem 7000 and Seaway Strashnov are set to commence construction work shortly, alongside HEA Leviathan and Edda Boreas, which will focus on the commissioning of the offshore substation (OSS) and underwater noise monitoring, respectively. The Saipem 7000 is currently en route from Norway to the Dogger Bank B site, tasked with installing the OSS topside onto an existing jacket foundation.

This topside is being transported by the Castoro XI cargo barge, towed by the Pacific Discovery anchor-handling tug. The installation process is anticipated to conclude by April 18, marking the beginning of commissioning activities. These activities will be supported by the HEA Leviathan jack-up vessel, providing accommodation and logistical support through mid-August. Concurrently, the Seaway Strashnov is expected to arrive at the site to start monopile installation. Subacoustech Environmental will conduct underwater noise monitoring during the initial monopile installations from the Edda Boreas service operations vessel. This phase follows a delay from the originally scheduled start in September 2023, attributed to mechanical issues discovered during the Dogger Bank A foundation installation campaign. The Dogger Bank Wind Farm consortium has indicated that monopile installation will continue into the third quarter of this year.

Meanwhile, the Seaway Strashnov has been spotted in Maasvlakte, Rotterdam, preparing for its upcoming deployment. Foundations for Dogger Bank B are being supplied by the Sif Netherlands and Smulders Projects Belgium consortium, under a contract signed in 2020 covering the first two phases of the Dogger Bank Wind Farm. These phases will feature 95 Haliade-X 13 MW turbines each, with the third phase, Dogger Bank C, set to include 87 Haliade-X 14 MW turbines. Currently, Dogger Bank A is in the turbine installation stage, having already commenced power production last year. The installation of the first turbine was carried out by Jan De Nul’s Voltaire vessel in September 2023, with eleven more turbines installed since. After a maintenance break, the Voltaire is expected to resume work in May, continuing the project’s progress towards its completion.

The Trans Mountain oil pipeline expansion, set to open on May 1 after facing delays, budget increases, and legal issues, still awaits some regulatory approvals. The project aims to enhance the pipeline’s capacity to 890,000 barrels per day, a move supported by oil producers but opposed by environmentalists and some political figures in British Columbia.

The controversy around the expansion led to the Canadian government acquiring the pipeline from Kinder Morgan. Despite the government’s environmental reservations, it pushed forward with the project, which now costs $53 billion, up from the initial $33 billion. However, analysts caution that the increased capacity may quickly be utilized due to rising oil production, potentially limiting the expansion’s long-term benefits.

The Biden-Harris administration has given the green light to the New England Wind project, marking the eighth significant offshore wind energy initiative approved under President Biden.

This approval pushes the U.S. past 10 gigawatts of offshore wind capacity, enough to power nearly 4 million homes, and underscores the administration’s commitment to building a robust offshore wind industry and achieving a 30-gigawatt capacity by 2030. The project, which will be located near Martha’s Vineyard and Nantucket, Massachusetts, is expected to generate up to 2,600 megawatts of electricity, powering over 900,000 homes with clean energy.

This initiative is part of the broader Bidenomics strategy, focusing on sustainable economic growth, job creation, and climate resilience. The administration’s efforts include conducting successful offshore wind lease auctions, generating significant investment, and exploring new opportunities for offshore wind energy development. The New England Wind project’s approval represents a significant step forward in the U.S.’s transition to a cleaner, more sustainable energy future.