The energy transition in oil and gas: June roundup

The June roundup highlights a decline in oil production investment and a surge in clean energy spending, with solar investment nearly equaling oil production spending. It analyzes the resilience of oil markets despite conflict in the Middle East, the acceleration of peak oil demand due to electric vehicle adoption in China, and various national policy shifts in the UK, Canada, and the US. Additionally, it reports on 'world first' projects in hydrogen blending and carbon capture and storage (CCS) in the US and Norway.

• Clean energy investment is significantly outpacing fossil fuel investment, with total clean energy spending set to reach USD 2.2 trillion this year, which is double the amount invested in fossil fuels. Specifically, spending on oil production is projected at USD 420 billion, trailing solar investment by USD 30 billion.
• The International Energy Agency (IEA) has moved its expectation for peak oil demand forward by two years to 2027, driven by "extraordinary" electric vehicle sales in China and the rise of electric trucks, which represented about one-fifth of sales in April.
• Despite geopolitical tensions in the Middle East, the oil market is characterized by high supply and weak demand, leading to a situation where "war in the Middle East isn’t enough to save the oil industry from the threat of $50 barrels."
• A pilot project in the US by Georgia Power and Mitsubishi Power achieved a "world first" by blending 50% hydrogen and 50% natural gas at a power station, though this only reduced emissions by 22% due to hydrogen's lower energy density.
• Norway has launched the world's largest industrial carbon capture and storage (CCS) project and the first commercial transport of CO2 by ship. The CCS project has an estimated cost of USD 3.4 billion over ten years, with the Norwegian government subsidizing USD 2.2 billion.
• The UK government has introduced new permitting rules for fossil fuel projects that require the consideration of emissions from burning fuels, as per the Finch ruling, though these may be weighed against "potential economic and other advantages of the project".

APA

Green, K. (2025). The energy transition in oil and gas: June roundup. Zero Carbon Analytics. https://zerocarbon-analytics.org/energy/oil-and-gas/the-energy-transition-in-oil-and-gas-june-roundup/

Chicago

Green, Kate. The energy transition in oil and gas: June roundup. Zero Carbon Analytics, 2025. https://zerocarbon-analytics.org/energy/oil-and-gas/the-energy-transition-in-oil-and-gas-june-roundup/.

Wikipedia

{{cite report |last1=Green |first1=Kate |title=The energy transition in oil and gas: June roundup |publisher=Zero Carbon Analytics |date=7 July 2025 |url=https://zerocarbon-analytics.org/energy/oil-and-gas/the-energy-transition-in-oil-and-gas-june-roundup/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{green2025energy, author = {Green, Kate}, title = {{The energy transition in oil and gas: June roundup}}, institution = {Zero Carbon Analytics}, year = {2025}, month = jul, url = {https://zerocarbon-analytics.org/energy/oil-and-gas/the-energy-transition-in-oil-and-gas-june-roundup/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }