Oil, Wind Leases & Heat Pumps: The Week's Top Energy Stories
1. IEA: The World’s Oil Safety Net is Almost Entirely Depleted
The IEA has warned that global oil supplies are depleting at a record pace, with the Strait of Hormuz closure driving the worst supply shock in decades
When the Strait of Hormuz closed at the end of February, the global oil market did not immediately collapse, but it was on borrowed time.
While the closure of the waterway effectively cut off 20% of the world’s fuel supplies, hundreds of tankers from the Middle East were already in transit and were weeks from reaching their destinations around the world.
As they arrived in ports, these shipments helped to absorb the shock of losing more than 14 million barrels per day of supplies from the Gulf.
Now, however, that cushion is vanishing.
According to the International Energy Agency's May 2026 Oil Market Report, global oil inventories fell by 129 million barrels in March and a further 117 million barrels in April.
That is the fastest supplies have plummeted since records began.
Shortly after the US and Israel began the war on Iran, the IEA began releasing its emergency supply of 400 million barrels of oil to soften the blow.
Even that intervention has struggled to keep pace with the deficit.
“That excess supply is now dwindling at a record pace,” says Wall Street Journal’s Georgi Kantchev, “with oil executives and analysts predicting that a harsh reckoning is set to upend the relative calm in energy markets.”
2. TotalEnergies to Renege on Wind Energy Contracts in Germany
TotalEnergies is pulling back from offshore wind in both Germany, just weeks after pulling out of the US, raising fresh questions about its net zero goals
French energy giant TotalEnergies looks set to pull out of a number of offshore wind contracts in Germany.
The revelation, published in German newspaper SZ on 19 May, comes just weeks after TotalEnergies was paid US$1bn by the Trump administration to scrap its offshore wind projects off the East Coast of the US.
SZ’s reporters say the energy major is reportedly seeking an exit from several German offshore wind leases it won in a 2023 state auction – sites for which it committed to paying around US$7bn.
For a company with ambitious 2030 carbon reduction targets and a 2050 net-zero goal, these moves seem counterintuitive and suggest a shift in operations back towards fossil fuels.
The company, however, insists it is “actively working on the realisation of our projects” but is seeking “practical solutions”.
Meanwhile, European grid operator TenneT has expressed concern.
Around 90% of the US$14.6bn raised in the 2023 auction was earmarked to fund the expansion of offshore power lines and converter stations connecting wind farms in the North and Baltic Seas to the mainland grid.
"If this doesn't happen, we fear that while our grid connections will be built on time, offshore wind farms that have already been auctioned could be delayed by several years," TenneT warns.
Germany's economy ministry has been blunt in its response, noting that under the current law, bidders have no legal right to withdraw and that it expects the projects to proceed.
But the legal grey area around the final investment decision, which is only triggered once an official grid connection date is set – a date that has not yet been announced – leaves the door ajar for an extended delay.
3. Johnson Controls Doubles Heat Pump Output in Denmark
Johnson Controls has expanded its Danish facilities in an effort to boost heat pump production as Europe races to electrify heating and phase out boilers
Johnson Controls, the smart energy specialist, is looking to the future of heating.
The American-Irish firm has officially opened its new manufacturing and testing complex in Holme, Denmark, in a move that promises to double the company's production capacity for large-scale industrial heat pumps.
The facility, which was built on the grounds of Johnson Control's previous Danish hub, comes at the right time for Johnson Controls and for Europe more broadly.
In 2026, the demand for heat pumps, both domestic and commercial, is soaring as companies, property developers and governments look to decarbonise heating in the run up to 2050.
As things stand, space heating is one of the single largest contributors to global emissions, which makes sustainable heating solutions a top priority in any climate action campaign.
This is borne out in the statistics. Data from the European Heat Pump Association shows that heat pump sales increased by 17% in the first quarter of this year, with that number expected to rise.
Johnson Controls' new site looks set to meet this demand.
4. The Biggest Headlines from the IEA's 2026 Global EV Outlook
Global electric car sales are forecast to reach 23 million in 2026, according to the International Energy Agency’s new edition of the Global EV Outlook
The adoption of EVs is set to accelerate further in 2026, reinforcing its growing role within the global energy system, according to the latest projections from the International Energy Agency (IEA).
The agency forecasts that global electric car sales will reach 23 million next year, representing close to 30% of total vehicle sales worldwide.
These projections are outlined in the newest edition of the IEA’s annual Global EV Outlook.
The Global EV Outlook highlights how EV expansion is increasingly intertwined with broader energy trends, spanning electricity demand, infrastructure development and fossil fuel displacement.
In 2025, global electric car sales rose by 20%, surpassing 20 million units and accounting for around a quarter of all new car sales globally.
Chinese manufacturers dominated the market, delivering 60% of EV sales, while European and North American automakers each held around 15%.
Fatih Birol, Executive Director of the IEA, says: “Electric car sales set new records in close to 100 countries last year.
“The growing popularity of EVs has marked a major shift for car markets and the energy system as a whole – and it is providing some relief now amid the largest oil supply shock in history.
“Looking ahead, the falls we have seen in battery prices and the potential policy responses to the current global energy crisis are set to provide further momentum in EV markets.”
5. FIA 2025 Report Tracks Motorsport's Clean Energy Transition
FIA's sustainability 2025 report details how hydrogen, EVs and sustainable fuels are reshaping racing, logistics and mobility across Formula 1 & Formula E
Motorsport's governing body has published its 2025 Sustainability and Diversity & Inclusion Report showing how energy transformation is reshaping competitive racing and global mobility.
The Fédération Internationale de l'Automobile (FIA) documented changes in fuel standards, power systems and transport logistics across its championships.
According to the FIA, the changes represent a shift from commitments to operational implementation. The report focuses on hydrogen regulation, sustainable fuels, EV platforms and low-carbon infrastructure across Formula 1 and Formula E.
The organisation's approach combines technical regulation with practical deployment across multiple racing series. This dual strategy addresses both competitive requirements and environmental performance standards within the motorsport sector.
The FIA approved technical and safety regulations for liquid hydrogen-powered competition vehicles in 2025. This framework could establish a precedent for hydrogen use in motorsport environments.
Motorsport has historically served as a testing environment for technologies that later enter commercial transport. The hydrogen regulations follow this pattern.
The report documents increased deployment of sustainable fuels and hybrid-electric systems within major championships. Formula 1 introduced centralised low-carbon power systems across European Grands Prix that delivered approximately a 90% reduction in energy emissions compared to previous systems, according to the FIA.
These power systems represent a significant infrastructure investment across multiple racing venues. The deployment model provides a template for similar installations at other international sporting events and large-scale gatherings.
H.E Mohammed Ben Sulayem, President of the FIA: "Our diversity is our strength. Looking ahead, our direction is clear."
