Felicity Bradstock

Eight major oil producers—Aramco, BP, Shell, Equinor, TotalEnergies, Eni, Chevron, and ExxonMobil—earned nearly $93 billion in combined profits from April through June 2026, almost twice their total from the same period a year earlier. The near-closure of the Strait of Hormuz after the U.S.-Israeli attack on Iran and the ensuing war disrupted global oil supplies and pushed Brent crude from about $68 per barrel in February to nearly $100 in May. Aramco recorded more than $33 billion in quarterly net income, BP earned $5.73 billion, and Chevron reported $12 billion in adjusted earnings. The gains have intensified criticism from consumers, environmentalists, and political leaders, including Donald Trump, and revived calls for windfall taxes to offset higher energy bills and fund climate-related costs. The episode also highlights continued global dependence on fossil fuels and the vulnerability of energy security when key trade routes are disrupted.

Prime Minister Andy Burnham’s pragmatic comments have raised expectations that the UK government could allow the Jackdaw gas field and possibly the Rosebank oil field to proceed, despite previous development consents being ruled unlawful over inadequate treatment of downstream emissions. The Labour government is balancing its renewable-energy and climate commitments against the UK’s dependence on gas and arguments that domestic production would improve energy security. Environmentalists, climate scientists, Labour critics, and the Green Party oppose new North Sea drilling, while BP supports expansion. The article concludes that approving the projects could trigger a Labour revolt without significantly lowering energy prices, creating many jobs, or securing the UK’s long-term energy supply.

Restarting a shuttered nuclear plant requires extensive inspections, repairs, regulatory approval and significant funding rather than simply restarting existing equipment. Holtec’s effort to revive Michigan’s Palisades plant has faced corrosion, equipment failures, supply-chain disruptions and inadequate initial planning, delaying the project and increasing costs. By contrast, Constellation Energy’s planned restart of the undamaged reactor at Pennsylvania’s Three Mile Island site may be faster because the company already knows the facility. The contrasting projects suggest that reactor restarts should be assessed case by case, weighing safety, age, repair costs and operator experience against the expense of building new capacity.

Wind turbine innovation is improving energy output through larger and taller machines, lighter and more adaptive blades, sensors, and turbines exceeding 15 megawatts. Floating offshore systems could expand generation into waters deeper than 60 meters, while Optimised Generators’ OptiGen design aims to reduce the cost and maintenance challenges of floating turbines. Experimental technologies are also broadening the sector’s options: China has tested the S2000 airborne system at 2,000 meters, and Vortex Bladeless is developing oscillating turbines for urban and residential settings. Global wind additions are forecast at 160 GW in 2026, though this would be below 2025 levels, and U.S. policy could constrain future expansion.

Months of restricted traffic through the Strait of Hormuz have disrupted a major source of global jet fuel, leaving Europe particularly exposed because it previously sourced about half of its imports from the Middle East. Energy Aspects forecasts a European deficit of nearly 600,000 barrels per day in the third quarter, while the United States and Asia-Pacific are expected to retain surpluses. European countries are seeking supplies from the United States, Nigeria, Canada, India and South Korea, and the EU may coordinate national reserve releases. Airlines are responding with alternative sourcing, fuel hedging, schedule changes and unusual logistics, but volatile prices are sharply increasing operating costs. Southwest reported almost $900 million in additional second-quarter fuel expenses, while United expects nearly $6 billion in extra 2026 costs; Ryanair has been partly protected by its hedging strategy.

The European Union is expanding clean-energy cooperation with North Africa and the wider Middle East through its T-MED initiative, which includes nearly $5.8 billion in financing and aims to attract up to $29 billion in private investment by 2035. Morocco and Egypt are key partners, with projects covering solar and wind generation, hydrogen, electricity grids and subsea transmission. The region is estimated to have about 2,300 GW of renewable potential, with production costs 30–40% below European levels. Major projects include upgrades to Egypt’s grid, the Noor Ouarzazate solar complex and Germany’s proposed 15 GW Morocco connection, although the latter faces delays. The initiative is intended to improve Europe’s energy security, reduce fossil-fuel dependence and create more than 100,000 jobs.

China plans to raise renewable-energy production to 1.8 billion tonnes of standard coal equivalent by 2030, expanding wind, solar, storage, hydropower, green hydrogen, transmission infrastructure and renewable-energy megabases. The country already leads global wind and solar deployment, but it is also continuing to build coal power to support grid stability and rising electricity demand. Coal expansion could limit the use of renewable capacity and undermine China’s goals of peaking carbon emissions by 2030 and reaching carbon neutrality by 2060, particularly as power-sector emissions rose in early 2026.

China’s passenger-vehicle sales are projected to fall sharply in 2026, with first-half sales down 20.2% and the China Passenger Car Association forecasting 20.4 million units for the full year, compared with 23.7 million in 2025. Higher fuel costs, reduced EV subsidies, rising battery and component expenses, and weak consumer demand are pressuring automakers and margins. Industry consolidation is expected, with BYD, Geely, Leapmotor, Volkswagen, and Toyota among the companies positioned to gain. At the same time, Chinese brands are expanding overseas: their share of Mexico’s new-vehicle sales rose to about 17% in the first half of 2026, though tariff-related inventory stockpiling and a 43% decline in imports could weaken future growth.

Reflect Orbital has received U.S. Federal Communications Commission permission to test the Eärendil-1 satellite, which will deploy an 18-meter mirror in low Earth orbit to redirect sunlight onto areas of Earth at night. The company says the system could illuminate streets and extend solar-farm generation, potentially charging up to $5,000 per hour, and plans to expand to as many as 50,000 mirrors by 2035. Scientists and environmental groups warn that artificial nighttime light could interfere with astronomy, pilot safety, human sleep and hormone cycles, plant growth, animal migration, and marine ecosystems. They are urging a full environmental review and limits on satellite reflectivity, while the FCC says space is not covered by the same environmental laws as Earth. The project also raises concerns about emissions from rocket launches and the broader effects of satellite proliferation, including SpaceX's proposed orbital computing network.

The Bank of England will stop accepting bonds issued by thermal coal mining companies as collateral in its lending operations from October 2026, citing financial risks associated with the transition to net-zero emissions. The policy is stricter than comparable measures at the European Central Bank and could prompt commercial banks to reduce their exposure to coal. The move follows growing pressure from environmental groups and evidence that many major banks have weakened their climate commitments, although more than 200 significant financial institutions already have formal restrictions on thermal coal financing.