Wednesday, 29 July, 2026 / Edition 120

Last week, two schoolmates from my alma mater, Peking University, won the Fields Medal—some call it the Nobel Prize for mathematics. They are Professor Wang Hong from NYU and France's École Polytechnique, and Professor Deng Yu from the University of Chicago.

One comment from Professor Wang about the importance of collaboration really resonated with me. In trying to solve world-class math problems, sometimes, mathematicians are quite close to the solution, but they might not realize it. In the moment, it can feel so hard and so far away. They might even stop the pursuit. But if the research has multiple collaborators, if just one has the faith and stamina to continue, others may feel energized to follow. Eventually, the group will solve the problem and reach the mountain top together.

I see so many ways in which this is true within exploration, too.

Now, let’s dig into two pieces of energy news from the past week.

Shangyou Nie

Editor, Well Read

Chevron and the Trump Administration Discuss Maintaining Kazakhstan’s Oil Production

PX Media/Shutterstock.com

Mike Wirth, chairman and CEO of Chevron, spoke with Trump Administration officials last week to discuss maintaining oil production in Kazakhstan despite the Ukraine War.

Chevron is the top IOC producer in landlocked Kazakhstan, whose oil production relies on access to a Russian port in the Black Sea to reach international markets. Ukraine’s recent drone strikes on oil tankers near this Russian port are threatening oil delivery and could cause further global price hikes.

The latest:

• According to the WSJ, Wirth spoke to Trump Administration officials about the potential reduction or stoppage of Kazakhstan oil production as collateral damage from the 4.5-year Russia-Ukraine War.
• A Ukrainian drone attack hit four oil tankers recently, including one belonging to Chevron near the Russian port of Novorossiysk in the Black Sea.
  • The port links to the Caspian Pipeline Consortium (CPC) oil pipeline, which provides about 2 percent of the world’s oil supply.
  • Oil tankers were reluctant to dock at the port, leading to forced reduction of oil production in Kazakhstan.
• Following discussions with Chevron and other industry representatives, the Trump Administration cautioned Ukraine against targeting non-Russian tankers in the Black Sea.
• According to the latest Bloompberg report, the CPC resumed operations this week.

Background:

• In recent years, Chevron and partners have spent $48 billion to expand oil production at the Tengiz oil field—Kazakhstan’s largest—to 1 million barrels of oil per day.
• In 2025, Kazakhstan produced 2.1 million barrels of oil per day, or about 2 percent of the global oil supply, according to the latest data from the Energy Institute.
• The country consumes about 390,000 barrels per day, leaving the majority of its production for export.
• The 1,500-kilometer CPC oil pipeline has an operating capacity of up to 1.8 million barrels per day.
• CPC is jointly owned by Kazakhstani and Russian state entities (combined 52 percent) with international oil companies (Chevron 15 percent; Rosneft-Shell, 9.5 percent; Lukoil, 12.5 percent; CPC, 7 percent; ExxonMobil, 7.5 percent; ENI, 2 percent; and Oryx Energies, 1.8 percent).
• CPC links to three major oil fields in Kazakhstan: Tengiz (1 million barrels per day capacity), Kashagan (0.4 million), and Karachaganak (0.3 million), with international equity owners.
  • Tengiz (Chevron, operator, 50 percent; ExxonMobil, 25 percent; KMG, 20 percent; Lukoil, 5 percent).
  • Kashagan (NCOC consortium as operator, with ExxonMobil, Shell, TotalEnergies, ENI, and KMG, 16.8 percent each; CNPC, 8.3 percent; and Inpex, 7.6 percent).
  • Karachaganak (KPO consortium as operator, with Shell and ENI, 29 percent each; Chevron, 18 percent; Lukoil, 14 percent; and KMG, 10 percent).

Chevron has oil and gas operations in three geopolitically sensitive regions, in addition to Kazakhstan:

1. Venezuela: Chevron is the leading IOC producer.
2. Israel: Chevron is the leading gas producer and the operator for the deepwater Leviathan and Tamar gas fields.
3. Iraq: Chevron is in discussions with the Iraqi government for a potential oil pipeline through Syria to reach the Mediterranean.

What they are saying: “The administration views the CPC as a vital conduit of Kazakhstan-origin energy for European markets that serves as an alternative to Russian energy supplies,” said one unnamed Trump administration official.

What to watch: Will international bodies force Russian companies and entities to exit their holdings in Kazakhstan? Who might acquire Lukoil’s interests in Kazakhstan?

UAE Takes $6.2 billion FID on Another Gas Cap Project to Boost Oil and Gas Production

Frantic00/Shutterstock.com

ADNOC, the United Arab Emirates’ state oil company, announced last week that it is taking FID on the $6.2 billion project to develop the gas gap for the offshore Umm Shaif field in the Persian Gulf.

After exiting OPEC in May, the United Arab Emirates plans to increase its oil production to 5 million barrels per day by 2027, despite ongoing conflict in Iran.

The United Arab Emirates’ latest decision:

• According to the WSJ, on 21 July, ADNOC confirmed that it took FID to develop the Umm Shaif gas cap.
• Additional gas production of some 600 million cubic feet per day will begin in 2030.
• ADNOC (operator, 60 percent) has invited three international partners to participate in the project: TotalEnergies (20 percent), ENI (10 percent), and CNPC (10 percent).
• No details, including the amount of the entry payments that the three partners had to make, were released.
• This is the second major gas cap project ADNOC has moved forward with international partners.

By the numbers:

• The project will include three engineering, procurement, and construction packages worth $5.1 billion.
• It will also include a 14-well development drilling program worth $365 million.
• ADNOC plans to use three existing rigs to complete drilling in 18 months.

Background:

• Effective 1 May, the United Arab Emirates exited OPEC to be able to decide on its own production level.
• United Arab Emirates has been one of the most outspoken supporters of the United States’ actions against Iran. The United Arab Emirates accused Iran of conducting “economic terrorism” by closing the Strait of Hormuz.
• In 2019, the United Arab Emirates and Bahrain signed the Abraham Accords sponsored by President Trump to normalize diplomatic relations with Israel. Morocco and Sudan subsequently joined the Accords.
  • The Trump Administration has been encouraging Saudi Arabia to join the Accords, as a requirement for collaboration on civil nuclear power.
• The United Arab Emirates produced 3.5 million barrels of oil per day in 2025. It aims to produce 5 million barrels of oil per day by 2027.
• On 24 June, ADNOC (operator, 60 percent) took FID to develop the Bab gas cap project with TotalEnergies and BP (10 percent each), and CNPC (8 percent) and Zhenhua Oil (4 percent), Inpex from Japan (5 percent), and GS E&P from Korea (3 percent).

What they’re saying: “The FID for the Umm Shaif gas cap is the latest milestone in the company’s gas growth strategy and will unlock more than 600 million cubic feet per day of natural gas and associated gas liquids, equivalent to almost 10 percent of the UAE’s current gas consumption,” said ADNOC via statement.

What to watch:

• What will the United Arab Emirates’ relationship with Iran look like going forward?
• How will other Gulf countries, especially Saudi Arabia, react to the United Arab Emirates’ new decisions?

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