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Shifting focus from price fluctuations to structural transformation and building competitiveness: As 2026 begins, the global energy landscape presents a complex and multifaceted character. The international crude oil market is struggling under concerns over oversupply, dampening the premium driven by geopolitical risks. At the same time, a profound industrial transformation is also taking place; traditional oil and gas companies are adopting a more cautious approach to capital expenditure, optimizing their balance sheets through restructuring ； The competition in the field of low-carbon technologies is accelerating, with increasing activity in technology mergers and acquisitions as well as investment in areas ranging from carbon capture, utilization, and storage (CCUS) to clean fuel projects. Carbon policies and carbon markets, the key drivers of energy transition, are seeking new balances and breakthroughs amid volatility. All of this indicates that the global energy transition is entering a critical year of adjustment, shifting from a focus on short-term price fluctuations to a practical approach aimed at long-term structural changes and the development of future competitiveness. Traditional energy markets under pressure; structural optimization becomes the main focus. In the first trading week of 2026, international oil prices failed to start on a positive note. Despite ongoing geopolitical tensions, concerns over oversupply and economic prospects dominated market sentiment. U.S. crude oil production remaining at record levels and an increase in strategic oil reserves, coupled with the International Energy Agency’s forecasts of future supply surpluses, all contributed to putting pressure on oil prices, resulting in declines in New York and Brent crude oil futures throughout the week. Technically, the global energy market is trapped in narrow-range fluctuations with no clear direction. At the micro level, pressures in the energy market are profoundly affecting corporate behavior. A survey by the Federal Reserve Bank of Dallas revealed a generally cautious attitude within the industry. Oil and gas companies have diverging views on future capital expenditures in the upstream sector, while service companies are more pessimistic; nearly half of them expect demand for upstream oil and gas expenditures to decline due to reduced levels of exploration activity. Companies are improving operational efficiency and ensuring financial stability through planned maintenance and strategic restructuring in order to cope with market uncertainties. The development of low-carbon initiatives is accelerating, showing a \"dual-track\" approach. In contrast to the caution exercised in upstream investments, the world is continuing to increase its efforts in energy transition and the development of low-carbon technologies, thus exhibiting a clear \"dual-track\" pattern. In the field of CCUS, 2026 is considered a critical year. Final Investment Decisions (FID) are expected to be made this year for several major hub projects, but their success depends heavily on stable policy support. The CCUS industry faces the typical \"chicken or egg\" dilemma: operators need commitment pledges from emitters to justify substantial capital expenditures, while emitters require reliable infrastructure in place. Against this backdrop, projects with strong government support are likely to make progress, while those without it will face severe challenges. Meanwhile, the shipborne transport of carbon dioxide is gaining momentum outside the \"Aurora\" project, with Asia’s policy focus shifting from formulating regulations to providing financial support. In the fields of clean fuels and green hydrogen, specific projects are moving from concept to reality. Topsoe will provide the technology to the Uruguayan refinery to produce sustainable aviation fuel and renewable diesel from rapeseed oil and tallow; the project is expected to come online by 2030. Colombia’s **Petroleum Company is advancing a green hydrogen project at its refinery in Cartagena, where hydrogen is produced using solar energy through electrolysis. Commissioning is scheduled for the first half of 2026, with the aim of replacing gray hydrogen used in the refining process and thereby reducing carbon emissions directly. Through acquisitions and integrations, engineering giants are also strengthening their capabilities to provide comprehensive solutions in the fields of sustainable fuels and circular chemistry. Fluctuations in carbon policies continue, putting the carbon market to the test. The large-scale adoption of low-carbon technologies relies on the drive and support provided by carbon policies and carbon markets. Having gone through a turbulent 2025, global carbon management faces a critical test in 2026 regarding the reshaping of leadership and the enhancement of relevant mechanisms. The focus of climate action is shifting and moving downward; it is expected that major economies will take a more active role in leading global discussions, while the United States will see concrete actions driven by state-level initiatives. The issue of reducing fossil fuels will re-enter the discussions on the implementation of global climate policies. At the same time, the impact of climate lawsuits is extending from courts to corporate boards of directors, posing greater risks to the operations and reputation of energy companies. In terms of the carbon market, policy fluctuations are not expected to prevent the introduction of a new compliant carbon pricing mechanism in 2026. The EU Carbon Border Adjustment Mechanism (CBAM) began to be implemented in the first quarter, providing practical incentives that go beyond theory for **implementing carbon pricing in sectors affected by it**. International carbon trading is expected to accelerate. For the carbon offset market, new guidance on disclosures and risk mitigation tools are aimed at reviving demand from corporate clients, and it will be a key focus of the year to see whether the new \"Paris Agreement credit mechanism\" can create a new market. Deep adjustments in the energy transition: Companies competing for low-carbon breakthroughs. Looking at the energy landscape at the beginning of 2026, one key trend is becoming increasingly clear: market attention is shifting from short-term fluctuations in crude oil prices to deeper adjustments in the energy industry structure and the systematic development of future competitiveness. For the traditional oil and gas industry, this means being more precise and selective in capital expenditures, focusing on improving the efficiency of core assets and optimizing costs, as well as shedding non-core or burdensome assets through strategic restructuring to achieve financial health. For companies aspiring to lead the future, competition has expanded to entirely new arenas. The ability to establish reliable and scalable business models in low-carbon technology areas such as sustainable fuels, green hydrogen, and CCUS will determine a company’s position in the second phase of the energy transition. Ultimately, whether a positive cycle can be established among technological breakthroughs, project implementation, and policy and market support will be the key to determining the success or failure of the global energy transition in 2026 and the years to come. Policymakers need to provide long-term, stable signals to attract large-scale private investment ； Enterprises, on the other hand, need to prove that low-carbon technologies not only offer environmental benefits but also possess economic viability and commercial resilience. The global energy system is navigating its path toward the future amid this complex struggle marked by intertwined positive and negative factors, as well as short-term pressures and long-term visions.