TotalEnergies Sets Bold Production Growth Targets Through 2030
TotalEnergies, the prominent French energy corporation, has unveiled an ambitious plan to ramp up its oil and gas production through 2030, aiming to reassure investors about its long-term viability.
CEO Patrick Pouyanne is steering a series of high-stakes projects designed to drive growth throughout the decade, including a significant $10 billion offshore investment in Suriname, which received approval just recently.
At the company’s annual strategy meeting held in New York, TotalEnergies sought to instill confidence in its investors amid fluctuating energy prices that have followed the geopolitical tensions sparked by Russia’s invasion of Ukraine in 2022.
The company has raised its growth forecast for oil and gas production to approximately 3% annually until 2030, primarily driven by liquefied natural gas (LNG). This follows the successful launch of six major projects this year across Brazil, Suriname, Angola, Oman, and Nigeria, as highlighted in a recent company statement.
LNG has become increasingly essential, especially in Asia and Europe, where nations are seeking alternatives to Russian gas supplies that have dramatically decreased since the onset of the war.
TotalEnergies has increased its previous production growth target, which was set at 2% to 3% per year until 2028. Pouyanne explained that the need for investment in oil remains crucial due to the natural decline in oil field production and the rising global demand for oil. He emphasized that low-carbon technologies have yet to make significant market inroads.
In addition to its oil and gas initiatives, TotalEnergies is committed to developing renewable energy sources, particularly from wind and solar power. The company aims to generate over 100 Terawatt hours of electricity by 2030, with a substantial 70% of this coming from renewable sources.
OPEC predicts a significant increase in oil demand, estimating a 17% rise from 2023 to 2050. This stands in contrast to the International Energy Agency’s projections, which suggest that demand for all fossil fuels—oil, gas, and coal—will peak before 2030 in light of global warming mitigation efforts.
Following record profits in 2022 and 2023 due to soaring prices triggered by geopolitical events, TotalEnergies may see a shift towards more typical market conditions this year. The company plans to reward its shareholders with an $8 billion share buyback, even as the French government contemplates new taxes on such buybacks to address financial deficits.
With these initiatives, TotalEnergies is positioning itself as a key player in the energy landscape while balancing traditional fossil fuel production with a commitment to renewable energy development.
