Oil & Gas

French energy giant TotalEnergies has announced plans to boost its oil and gas production through 2030, aiming to reassure investors as energy prices fluctuate. CEO Patrick Pouyanne revealed a series of strategic initiatives, including a significant $10 billion offshore investment in Suriname, which recently received regulatory approval. This effort comes as the company seeks to bolster investor confidence following a decline in energy prices since the onset of the war in Ukraine in 2022.

In its latest forecasts, TotalEnergies projects an annual growth rate of around three percent for oil and gas production, up from a previous estimate of two to three percent per year until 2028. This growth is expected to be largely driven by liquefied natural gas (LNG), which remains in high demand in Asia and Europe as countries work to replace diminished Russian energy supplies.

Pouyanne emphasized the need for ongoing investment in traditional energy sources, citing the natural decline in oil field production and the rising global demand for oil. He noted that low-carbon technologies have yet to significantly penetrate the market, reinforcing the case for continued investment in fossil fuels alongside efforts to develop renewable energy sources.

Looking ahead, TotalEnergies aims to produce over 100 Terawatt hours of electricity by 2030, with 70 percent coming from renewable sources such as wind and solar. After achieving record profits in 2022 and 2023, the company plans an $8 billion share buyback program to reward shareholders, even as the French government considers taxing such operations to address budget shortfalls. As TotalEnergies navigates these ambitious plans, the balance between fossil fuel reliance and the push for sustainability remains a critical challenge.