French energy giant TotalEnergies has announced plans to ramp up oil and gas production through 2030, aiming to reassure investors amid falling energy prices. CEO Patrick Pouyanne unveiled the company’s updated strategy at its annual outlook meeting in New York on Wednesday, emphasizing key projects that will drive growth over the next decade, including a $10 billion offshore investment in Suriname that was approved earlier this week.
The company has raised its production growth forecast to around 3% annually until 2030, up from its previous target of 2–3% until 2028. This increase will be driven by liquefied natural gas (LNG) and six major projects launched this year in Brazil, Suriname, Angola, Oman, and Nigeria, according to a company statement.
LNG is in high demand in Asia and Europe, as European nations continue to seek alternatives to Russian gas since the invasion of Ukraine in 2022.
Pouyanne defended the continued focus on oil investments, citing the natural decline in oil field production and growing global demand. “So we need to continue to invest in oil,” he said, while also acknowledging that low-carbon technologies are not yet significantly impacting the market.
While TotalEnergies remains committed to oil, the company also plans to expand its renewable energy portfolio. It aims to generate over 100 Terawatt hours of electricity by 2030, with 70% coming from renewable sources such as wind and solar.
These developments come as the Organization of the Petroleum Exporting Countries (OPEC) forecasts a 17% increase in oil demand by 2050, in contrast to the International Energy Agency’s prediction that demand for fossil fuels will peak before 2030.
Following record profits in 2022 and 2023, driven by soaring energy prices after Russia’s invasion of Ukraine, TotalEnergies anticipates a return to more stable conditions this year. To reward shareholders, the company announced an $8 billion share buyback, a move that comes as the French government considers imposing taxes on such operations to bolster its budget.
