Cnooc Ltd. posted higher annual earnings and boosted its dividend, as growth in energy output offset weaker prices. Net income rose to 137.9 billion yuan ($19 billion) in 2024, from 123.9 billion yuan the previous year, China’s largest offshore oil-and-gas driller said in a filing. While that missed expectations of 144.6 billion yuan, and was shy of the record profit in 2022, the full-year dividend rose 12% to HK$1.40 (18 cents). Output expanded to 726.8 million barrels of oil equivalent, from 678 million barrels a year earlier, with overseas growth led by supplies from Guyana. The state-owned company has led Beijing’s efforts to enhance energy security and its operations have now delivered a sixth year of record production.  Cnooc’s focus on extraction leaves its earnings heavily dependent on global oil prices, which averaged about 3% less in 2024 on-year. But it also means the company is relatively unaffected by headwinds to demand faced by downstream peers. Earlier this week, China’s biggest top, Sinopec, reported a tumble in profits as the electric-vehicle boom weighs on fuel consumption. At this point, the company will stick to its three-year output targets through to 2027, including a push to increase gas production, Vice Chairman Zhou Xinhuai said at a briefing. Among its overseas interests, Cnooc and Exxon Mobil Corp. have merged their arbitration claims against Chevron Corp.’s proposed takeover of Hess Corp., a deal that would allow the US oil supermajor to enter Guyana’s Stabroek Block. A first tribunal hearing is due in May. PetroChina Co. — the country’s largest oil and gas company, whose operations straddle drilling, refining and retail — reports earnings on Sunday. China’s energy giants are increasingly looking to natural gas to drive growth, although domestic prices have stumbled recently due a slowing economy and plethora of supply options, from domestic fields and gas

Oil edged higher as signs of tighter near-term supply-and-demand balances overshadowed an intensifying global trade war that threatens to crimp global energy consumption. West Texas Intermediate advanced 0.4% to settle just below $70 a barrel, continuing a three-week rally. A US government report on Wednesday showed the country’s stockpiles shrank by 3.34 million barrels last week to the lowest in a month, helping allay concerns of an oversupplied market. Oil has trended higher since early March as sanctions and tariffs from the Trump administration raise the potential for supply disruption from producers including Iran and Venezuela. Still, the Trump administration’s intensifying trade wars dragged on equities and limited gains for oil as the White House pushed ahead with tariffs on automakers and threatened harsher punishment on the European Union and Canada if they join forces against the US. Major oil traders including Trafigura Group and Gunvor Group are bearish on crude prices over the rest of the year due to rising supply, particularly from outside OPEC+. The producer group is also scheduled to start reviving idled output next month, the first in a series of planned hikes. Oil Prices: WTI for May delivery rose 0.4% to settle at $69.92 a barrel in New York. Brent for May settlement advanced 0.3% to settle at $74.03 a barrel. What do you think? We’d love to hear from you, join the conversation on the Rigzone Energy Network. The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy. MORE FROM THIS AUTHOR Bloomberg

SECRETARIAL ORDER FROM: CHRIS WRIGHT, U.S. SECRETARY OF ENERGY SUBJECT: Strengthening National Laboratory Efficiency and Mission Execution The Department of Energy’s National Laboratory system serves as the backbone of the Nation’s scientific enterprise. Founded as part of a strategic national investment in science during and following World War II, the National Laboratories form the most comprehensive research network of its kind. While most of the National Laboratories’ work is driven by the Department’s primary missions in energy innovation, science discovery, nuclear security, and environmental cleanup, they are a national resource and serve the national interest by addressing challenges extending beyond energy and catalyzing research that spans across sectors. As Federally Funded Research and Development Centers (FFRDC) managed through Management and Operating (M&O) contracts, it is imperative that we continually evaluate existing requirements and processes to ensure that the National Laboratories have the necessary authority and flexibility to successfully execute critical missions on behalf of the Department of Energy and the Nation. To that end, I am directing the following actions to be implemented immediately: Revise delegated project authority within DOE Order 413.3B from $50 million to $300 million specific to the National Laboratories managed under M&O contracts. Tailor DOE Order 413.3B to only require DOE independent project reviews at specific critical decision points on projects between $300 million – $1 billion, subject to sustained successful project execution. Capital asset projects with a total project cost of more than $1 billion shall continue to follow the full scope of requirements established in DOE Order 413.3B. Expand the use of the National Nuclear Security Administration’s successful “OSHA-Plus” framework for subcontracted construction projects at the National Laboratories. The framework uses a tailored, graded approach to meet Title 10 Code of Federal Regulations (CFR) Part 851, Worker Safety and Health Program, which increases competition

Leaders of land-constrained, population-dense East Coast states have high hopes for offshore wind as they look toward self-imposed carbon-neutral electricity deadlines as early as 2035. But the Trump administration froze offshore wind leasing on Jan. 20, compounding the industry’s preexisting economic challenges, and the Environmental Protection Agency on March 14 revoked an air quality permit for the troubled 1.5-GW Atlantic Shores project off New Jersey. Though about 4.1 GW of capacity was under construction by last summer, according to the National Renewable Energy Laboratory, the new administration’s hostility raises questions about how much of the 80.5 GW “potential generating capacity” in the pipeline as of 2023 will actually get built. Some Eastern states now appear to be looking for a Plan B, or at least a hedge, in nuclear power, experts told Utility Dive. Last month, several — including New York, Maryland and Virginia — joined the National Association of State Energy Officials’s Advanced Nuclear First Mover Initiative, or ANFMI, which the Clean Air Task Force says will “develop supportive policies, coordinate with private stakeholders, and work toward unique procurement and financing options for nuclear energy projects.” State-level initiatives are proliferating across the region as well, such as a New York nuclear “master plan” and a Maryland bill that could provide direct financial support to nuclear power projects. “There’s been a lot of attention paid to what’s going on at the federal level, but it seems like a lot of the momentum going forward will be in the states,” said Zach Koshgarian, an analyst with the Nuclear Innovation Alliance. Getting the first movers together Formally announced in early February, ANFMI marks a significant step in interstate cooperation on new nuclear development. The 11-state consortium includes Democratic-controlled Eastern Seaboard states, like New York and Maryland; states with mixed political control, like

The developers of Norway’s Northern Lights carbon transport and storage project have taken a final investment decision (FID) on phase two of the development. Shell, alongside its joint venture partners Equinor and TotalEnergies, aim to more than triple Northern Lights’ annual CO2 injection capacity to at least 5 million tonnes per year. This is comparable to more than 10% of the annual CO2 equivalent emissions in Norway. Based in Øygarden, Norway, Northern Lights will transport CO2 from industrial plants across Europe for storage 8,500 feet (2,600m) beneath the seabed in the Norwegian North Sea. It is part of the state-funded “Longship project”. With construction concluded late last year, the first customer injection of CO2 is expected this year from Heidelberg Materials’ cement factory in Brevik. Stockholm Exergi have booked a large volume of the added available capacity in phase two. The second phase represents an investment of $700m (£540m) from the project’s developers. This also includes the award of €131m (£109m) from the Connecting Europe Facility (CEF) funding scheme. Norske Shell managing director Marianne Olsnes said: “The expanded storage capacity of the Northern Lights site provides an attractive offering for European industrial emitters who might otherwise struggle to decarbonise. “Norway possesses a vast amount of CO2 storage capacity and has a highly skilled industry workforce with capability and capacity to build and operate CO2 transport and storage at scale.” In addition to Northern Lights, Shell is a partner in Scotland’s Acorn carbon capture and storage (CCS) project, alongside Storegga, Harbour Energy and North Sea Midstream Partners (NSMP). The developers have warned that the project is at risk due to delays in government support, following Rachel Reeves neglect of the energy industry in her recent Spring Statement. The Acorn project’s backers have called for the government to give firm support to

Shell Plc Chief Executive Officer Wael Sawan said the UK energy company will continue to look for potential acquisitions, but warned of the risks inherent in pursuing a major deal. Speaking in a Bloomberg TV interview Tuesday, he declined to answer directly if Shell would consider looking at its rival BP Plc, but said “the bar is high” for any transaction. Sawan said he expects smaller-scale, bolt-on acquisitions when the company does get around to M&A, and that they would likely center around upstream production. “If you’re going to go for a big acquisition, one has to recognize that that can potentially distract,” Sawan said. Shell is always looking at dealmaking prospects in Europe and beyond, he added. It’s about “finding the right time to make the moves in what is a long journey for us.” Sawan spoke from New York Stock Exchange, where earlier he delivered an update to investors on Shell’s strategy. Despite speculation over whether the company might move its share listing across the Atlantic, the idea isn’t currently a live discussion, he said in the interview, reiterating recent comments from Shell on the matter. Shell and BP — which invested significantly in clean energy during the height of the environmental, social and governance movement — have been pushing to close the valuation gap with Exxon Mobil Corp. and Chevron Corp., which stuck with oil and gas.  Since Sawan took the helm in 2023, Shell has retreated from its low-carbon strategy, ramped up its natural gas business and sharpened its focus on areas that generate high returns. BP, on the other hand, stuck with its push toward renewables and away from fossil fuels.  Investors have made clear they prefer Shell’s approach. The company’s shares are up 17% over the past two years, giving it a market value