Leadership Continuity Amidst Tensions
On Friday, May 24, following TotalEnergies’ general assembly, Patrick Pouyanné is expected to see his CEO mandate renewed for a third term. Some shareholders have called for separating the roles of chairman and CEO, but the proposal was not on the agenda. The assembly, as in previous years, will occur in a tense atmosphere between TotalEnergies and NGOs like Bloom, Alliance Santé Planétaire, and Nuestro Futuro, who filed a complaint against the company on May 21, accusing it of contributing to « climate chaos. »
Dual Strategy: Hydrocarbons and Green Energy
The century-old multinational, which made $21.4 billion in profits last year, continues its dual strategy: focusing on both hydrocarbons and green energy. The goal is to reduce reliance on the former while increasing the latter to achieve carbon neutrality by 2050.
Producing More and Emitting Less
TotalEnergies currently holds a 1.5% market share in oil and aims for a similar target in renewables. « We want to build a system representing 1% of the world’s electricity by 2030, » stated Patrick Pouyanné in a Senate hearing. This year, the company invests $12 billion in oil and gas, down from $19 billion a decade ago, and over $5 billion in decarbonized energies.
Financing Green with Black
Despite criticism from NGOs regarding green investments, TotalEnergies is considered one of the most advanced oil majors in energy transition. The company plans to increase its oil production by 2-3% annually over the next five years. Following its controversial pipeline project in Uganda, TotalEnergies announced projects or acquisitions in Namibia, Suriname, Brazil, and expanded its LNG operations in the U.S.
Reducing Carbon Intensity
TotalEnergies aims to produce oil with lower emissions. « Our carbon intensity, currently 18 kilos of CO2 per barrel, will drop to 13 kilos by 2028, » says Patrick Pouyanné. « By 2030, we will reduce our CO2 emissions by 40% and methane emissions by 80%. »
Investing in Renewables
The multinational leverages high returns from hydrocarbons to finance renewables, which currently have three to four times lower ROI. This diversification is a significant gamble, especially with rising project costs and interest rates. However, TotalEnergies remains steadfast in its roadmap, with renewable capacity set to grow from 22 GW today to 100 GW by 2030, aiming to join the top ten global electricity producers in a decade.
