Paris (AFP) – French group TotalEnergies on Monday announced plans to increase oil, gas and electricity production while cutting spending by $7.5 billion between 2026-2030. TotalEnergies said at an Investor Day in New York that it would boost oil and gas production by three percent over that period.
At the same time, it pledged to cut greenhouse gas emissions from its gas and oil operations by half compared to 2015 and cut methane emissions by 80 percent from 2020 levels. Under fire for continued fossil fuel investments, the company argues oil and gas remain essential to meet global demand and fund renewable technology.
The oil and gas giant, which has expanded into renewables like wind and solar, plans to focus on high-margin exploration and production projects while staying selective on low-carbon investments. Low-carbon spending will average $4 billion a year, mostly for its Integrated Power unit.
Electricity output is set to grow 20 percent annually, reaching up to 120 terawatt-hours by 2030, with 70 percent from renewables and 30 percent from “flexible” gas — gas plants that can be ramped up to complement intermittent renewable sources. TotalEnergies said this diversification will boost resilience and shareholder returns, reaffirming plans to return over 40 percent of cash flow to investors.
As part of its cost-cutting plan, the company will trim annual capital expenditures to $16 billion in 2026 and $15–17 billion between 2027 and 2030 — about $1 billion less than previous guidance. Jobs will not be affected, it said.
© 2024 AFP
