To reassure investors about its fundamentals, the French energy company TotalEnergies has revealed plans to raise its production of gas and oil until 2030.
CEO Patrick Pouyanne has a number of large-scale initiatives planned to drive growth over the next ten years, chief among them being a $10 billion offshore investment in Suriname that was approved on Tuesday.
At its annual strategy and outlook meeting in New York on Wednesday, the business made an effort to reassure investors despite the fact that energy prices have decreased since Russia’s invasion of Ukraine in 2022.
According to a corporate statement, TotalEnergies increased its growth projection for oil and gas output to roughly three percent annually until 2030. LNG will be the main driver of this expansion, and the business has launched six significant projects this year in Brazil, Suriname, Angola, Oman, and Nigeria.
Asia and Europe have developed a strong need for LNG as a means of making up for the sharp decline in Russian shipments by land that has occurred since the start of the war in Ukraine.
The company has raised its projection, which was two to three percent per year until 2028.
Pouyanne used the natural fall in oil field production and the increase in the world’s oil demand as justification for the extended climb.
“So we need to continue to invest in oil,” he said, adding that for now, low-carbon technologies were not penetrating the market significantly.
By 2030, TotalEnergies hopes to generate more than 100 terawatt hours of electricity, 70 percent of which will come from renewable sources. The company plans to build flexible renewable electricity from solar and wind.
Opec projects that between 2023 and 2050, the demand for oil will rise by 17 percent, despite the need to mitigate global warming and the International Energy Agency’s prediction that demand for all fossil fuels (coal, gas, and oil) will peak before 2030.
This year may see a return to normalcy following TotalEnergies’ record earnings in 2022 and 2023 as prices skyrocketed following Russia’s invasion of Ukraine.
The group intends to reward shareholders with an $8 billion share buyback, just as the French government is considering taxing such operations to replenish dwindling state coffers.
