TotalEnergies Plans to Increase Oil and Gas Production Through 2030
French energy giant TotalEnergies has unveiled plans to boost its oil and gas production through 2030 to reassure investors about the company's financial stability.
CEO Patrick Pouyanne introduced several ambitious initiatives designed to drive growth over the decade, including a $10 billion offshore investment in Suriname, which received approval on this week.
During its annual strategy and outlook meeting in New York on Wednesday, the company aimed to instil confidence among investors, especially as energy prices have declined since Russia invaded Ukraine in 2022.
TotalEnergies has revised its growth forecast for oil and gas production to approximately 3 % annually through 2030, primarily driven by liquefied natural gas (LNG).
As stated in a company announcement, this follows the launch of six major projects this year in Brazil, Suriname, Angola, Oman, and Nigeria.
Liquefied natural gas (LNG) is in high demand in Asia and Europe, where countries have been trying to offset the significant reduction in Russian deliveries since the onset of the war in Ukraine.
TotalEnergies has revised its growth forecast from the previous expectation of 2-3% per year until 2028 to a more optimistic outlook.
The company plans to enhance its renewable energy portfolio, targeting the generation of over 100 terawatt-hours of electricity by 2030, with 70 percent sourced from renewable energy like wind and solar.
OPEC projects a significant rise in oil demand, estimating an increase of 17 percent from 2023 to 2050. This contrasts with the efforts to curb global warming and the International Energy Agency's forecast, which suggests that demand for all fossil fuels—oil, gas, and coal—will peak before 2030.
After achieving record profits in 2022 and 2023 due to soaring prices following Russia's invasion of Ukraine, TotalEnergies may see a return to more typical market conditions this year.
The company plans to reward shareholders with an $8 billion share buyback, even as the French government considers imposing taxes on such buybacks to replenish its dwindling state revenues.
