Central European Petroleum (CEP) announced Monday a “major” oil discovery in the Wolin concession on Poland’s side of the Baltic Sea. The Canadian explorer and producer estimates that the Wolin East 1 discovery well holds mean recoverable oil, sales gas and natural gas liquids of 200 million barrels of oil equivalent (MMboe). Based on the estimate, “the oil and gas resources in Wolin East constitute the largest conventional hydrocarbon field yet discovered in Poland, and one of the largest conventional oil discoveries in Europe in the past decade”, CEP said in a statement online. The well was drilled by a jack-up rig in waters 9.5 meters (31.17 feet) deep and about six kilometers (3.73 miles) from the city of Swinoujscie. Drilling reached a vertical depth of 2,715 meters. “Tests confirmed a 62-meter hydrocarbon column and excellent reservoir properties for oil and gas production in the Main Dolomite geological formation”, CEP said. “There is also significant further low-risk exploration, appraisal and secondary recovery potential within the license in the Main Dolomite as well as in the deeper Rotliegend formation”, it added. “With these opportunities included, the Wolin license in total is estimated to contain more than 400 MMboe of recoverable hydrocarbon resources”, CEP said. Krzysztof Galos, undersecretary of state and chief national geologist, said, “The discovery of the Wolin East hydrocarbon deposit – although it still requires the preparation, submission, and approval of the deposit’s geological documentation – may prove to be one of the breakthrough moments in the history of hydrocarbon exploration in Poland, especially with regard to areas that have so far remained insufficiently explored, such as Poland’s Exclusive Economic Zone in the Baltic Sea”. “If this discovery is ultimately confirmed, the Wolin East deposit could become the largest oil and associated natural gas field discovered in Poland to date”, Galos

Oil edged down, extending its losing streak from last week, on lingering worries about crude demand as US trade talks stall and the European Union’s latest sanctions have yet to dent Russian energy exports. West Texas Intermediate crude ended the day marginally lower near $67 a barrel on Monday, after slipping 1.6% last week. EU envoys are set to meet as early as this week to formulate a plan to respond to a possible no-deal scenario with US President Donald Trump, whose position is seen to have stiffened ahead of an Aug. 1 deadline. Late last week, the 27-nation bloc agreed on a package of sanctions against Moscow, including a lower price cap on the country’s crude and a ban on a large refinery in India. Still, restrictions on Russian diesel won’t fully come into effect until January. US crude futures for August delivery are set to expire on Tuesday, contributing to muted volumes and listless trading. Oil has trended higher since early May, but WTI is still down for the year as Trump ratchets up his trade war and OPEC+ relaxes supply curbs. Prices have been jolted by developments in the Middle East, as well as sanctions on crude from producers including Russia and Iran. “In the absence of catalysts, the path of least resistance could be lower,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. Diesel’s price relative to crude in Europe, a gauge for profitability of producing the fuel, was near the highest since early 2024, while its prompt time spread — the difference between its closest two contracts — also rallied on Friday, widening its bullish backwardation structure. Oil Prices WTI for August delivery, which expires Tuesday, edged 14 cents lower to settle at $67.20 a barrel in New York. The more

Treasury Secretary Scott Bessent said the next round of US-China talks could include a discussion of China’s purchases of Russian and Iranian oil, a signal that the focus could shift from more traditional trade issues to ones that cross over into matters of national security. “Trade is in a good place,” Bessent said on CNBC, referring to recent and ongoing negotiations with China. “And I think now we can start talking about other things. The Chinese, unfortunately, are very large purchasers of sanctioned Iranian oil, sanctioned Russian oil — so we could start discussing that.” Bessent was also asked about new sanctions on Russia, and he hinted the US was more likely to pursue a tariff-based strategy that would impose hefty duties on any country it found to be purchasing sanctioned Russian energy. “Any country who buys sanctioned Russian oil is going to be subject to up to 100% secondary tariffs,” he said. “President Trump has changed the conversation here and I would urge our European allies, who have talked a big game, to follow us if we implement these secondary tariffs.” President Donald Trump last week threatened “very severe tariffs if we don’t have a deal in 50 days” on the Russia-Ukraine war. “tariffs at about 100%.” WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

The UK joined the European Union’s efforts to diminish Russia’s revenues further by lowering the price cap on its crude oil, extending a broader push to pressure the Kremlin for continuing the war in Ukraine.  The cap on Russian oil, currently set at $60 per barrel, will be lowered to $47.60 on September 2, the UK government announced Friday. The price caps of $100 on high-value refined oil products, such as diesel and petrol, and $45 on low-value refined oil products, such as fuel oil, remain unaffected. EU states earlier approved a fresh sanctions package on Russia that included new banking restrictions and curbs on fuels made from the nation’s petroleum. The package – the bloc’s 18th since Moscow’s full-scale invasion of Ukraine – will also cut off 20 more Russian banks from the international payments system SWIFT and impose restrictions on Russian petroleum refined in other countries. A large oil refinery in India, part-owned by Russia’s state-run oil company, Rosneft PJSC, was also blacklisted. The latest sanctions from the UK and EU are aimed at further crimping the Russia’s energy revenue, the bulk of which comes from oil exports to India and China. It comes after the original price cap imposed by the Group of Seven had a limited impact due to a large shadow fleet of tankers that haul its oil without using western services. The revised cap approved by the EU will be set at 15 percent below market rates moving forward and revised automatically at least twice a year. “This decisive step to lower the crude Oil Price Cap will target Russia’s oil revenues and ramp up the pressure on Putin by exploiting his biggest vulnerability – while keeping energy markets stable,” said UK Chancellor of the Exchequer Rachel Reeves.  The UK and EU have so far failed to convince

California Governor Gavin Newsom is proposing a bill to streamline permitting for new oil wells that environmental groups say would wipe out scrutiny of the industry. The bill would establish “plug-to-drill” permitting until 2036 where two wells would have to be plugged and abandoned before a new one is drilled. In addition, drillers no longer would need well approval from the Geologic Energy Management Division, known as CalGem, so long as certain conditions are met. Shares of in-state drillers climbed on the news, with California Resources Corporation jumping 4.8% and Berry Corp. up 6.9%.  The draft bill text — seen by Bloomberg News and portions of which were leaked by environmental groups — is the latest in a series of recent shifts Newsom has made in approaching the oil and gas industry after years of regulatory scrutiny.  The governor is softening his stance toward the industry this year after refineries operated by Phillips 66 and Valero Energy Corp. decided to shut operations in the state and California’s legislature placed a greater emphasis on reducing costs of living for the state’s 40 million residents. A spokesperson for the governor said environmental groups are circulating only partial text from the bill.  “We continue to work with the legislature on policy that will help stabilize California’s petroleum market while ensuring a safe, reliable, and affordable supply of transportation fuels,” the governor’s office said in a statement. In a statement accompanying their leaked text from the bill, 12 environmental justice groups said the proposal amounts to a blank check for unlimited drilling across the state for the next decade. WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

  Dive Brief: Rising electricity demand and a slowdown in the buildout of alternative sources of power generation could extend the use of coal globally and displace 2,100 GW of gas and renewables by 2050, Wood Mackenzie said in a report earlier this month. Under a high demand scenario, coal-fired power generation could peak in 2030, four years later than the analysis’ “base case” forecast. The economics and politics of coal are strongest in Asia. In the United States, coal is more expensive than gas or solar and storage, but the cost of building new gas power plants has nearly doubled and long-duration energy storage technology is not yet mature enough to convert solar and wind into true “baseload” resources, the report said. Dive Insight: In Asia, national security concerns and economics favor coal for now, said Anthony Knutson, global head of thermal coal markets at Wood Mackenzie, although when it comes to just levelized cost, hybrid solar and storage remain cheaper than coal or gas. “While the long-term trajectory towards renewables remains intact, the path is proving far more complex than many anticipated as countries grapple with energy security and affordability concerns,” Knutson said in a statement. Wood Mackenzie expects the levelized cost of unabated coal-fired power in the Asia and Pacific region to remain below $100/MWh in 2030, lower than the expected levelized cost of gas-fired power there.  Coal-fueled power in the United States will cost about $230/MWh in the United States and about $270/MWh in Europe in 2030, according to the report. By then, gas-fired power will cost about $100/MWh in the United States and about $150/MWh in Europe, it said.  Hybrid solar and storage will undercut coal and gas in all three regions, coming in around $60/MWh in Asia, $70/MWh in Europe and $80/MWh in the