Patrick Pouyanné, CEO of French energy company TotalEnergies, characterized the current turmoil in global energy markets as a source of new profit-making opportunities for the oil major. Speaking at the Energy Intelligence Forum in London, Pouyanné emphasized that market disruptions, while challenging, can provide avenues for increased returns if companies possess the right assets.
TotalEnergies, which has approximately 15 percent of its global oil and gas production tied to the Middle East region affected by ongoing conflicts, has nonetheless posted strong financial results. The company reported a 47 percent increase in profits during the first half of the year, reaching $11.4 billion. Reflecting confidence in its financial position, Total recently announced plans to boost its share buyback program to $2.5 billion in the final quarter of 2023.
Pouyanné pointed to TotalEnergies’ integrated business model—covering production, refining, and trading—as a significant strength amid the crisis. He noted that assets such as European refineries, previously considered burdens, have become highly valuable under current market conditions. This integration has allowed the company to navigate disruptions more effectively than competitors focused on only one part of the value chain.
Addressing broader concerns, Pouyanné acknowledged public sensitivity regarding rising energy prices in France, where TotalEnergies frequently faces criticism. The French government has implemented measures aimed at protecting vulnerable populations and reducing social tensions. Meanwhile, Total has been subsidizing fuel prices domestically to mitigate public discontent.
Pouyanné also revealed that the company has refrained from declaring force majeure on liquefied natural gas (LNG) shipments despite pressures arising from the global crisis. Instead, TotalEnergies has accepted a roughly 10 percent reduction in gas volumes to maintain supply commitments. This approach is intended to demonstrate reliability to customers during a period of widespread uncertainty in energy markets.
Looking ahead, TotalEnergies outlined ambitious growth targets, aiming to increase its oil and gas production to 3 million barrels per day by 2030. Pouyanné argued that scale remains a critical factor in investor valuation within the sector, with larger producers generally receiving premiums. “We cannot just remain where we are today. Let’s be the leader of this market,” he stated.
The CEO also discussed changes in investor attitudes toward transparency about reserve levels. While the company had previously avoided disclosing detailed reserve data, he said that such figures have become important performance indicators. “Five years ago, it was impossible to speak about it. In 2020 to 2022 we were hiding our reserves figures. I said to my people they [investors] don’t like it. Now today it’s becoming perfect KPIs,” Pouyanné explained.
TotalEnergies’ outlook and strategies reflect a broader trend among major oil companies to leverage market disruptions and reinforce their positions amid ongoing geopolitical and economic volatility.