CITIC Construction Investment: International oil prices fluctuate and rise, oil giants pay attention to upstream exploration.

CICC's research report indicates that in recent years, large oil companies have adjusted their development strategies, shifting from prioritizing shareholder returns to increasing investment in oil and gas exploration. The core reason is the belief that there will continue to be sustained global demand for oil and gas in the coming decades. On one hand, the predicted peak in oil demand by many institutions has not materialized, with the adoption of electric vehicles in some regions only slowing rather than halting the growth in oil demand. Some regions are even planning to reintroduce fuel vehicles. On the other hand, oil companies are actively expanding their oil reserves and supporting capacity expansion as a key focus of their development. Some companies are considering rapid expansion through acquisitions, and different regions have varied development trends due to differences in climate policies. Relevant forecasts indicate that the upstream oil and gas sector will see development opportunities in 2026, with the possibility of low energy prices in the short term followed by a rebound.