TotalEnergies to Use Oil Production Growth to Fund Low-Carbon Power Shift

TotalEnergies is expanding its oil and gas production by 2% to 3% annually through the mid-2030s. This move anchors the company's financial base in upstream projects and exploration while it simultaneously pivots toward low-carbon power. Between 2030 and 2035, the company intends to add 10 to 12 TWh of clean generation per year to shift its asset structure and mitigate the risks of the energy transition.

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The strategy treats hydrocarbons as a funding mechanism for electricity. By 2035, power is expected to account for 25% of the company's total energy balance. This diversification leverages existing operations across 120 countries, maintaining a physical presence in the Middle East and the Americas to balance current cash flows from oil against the long-term shift toward renewables.

Capital expenditure from 2027 to 2032 will range between $14 billion and $17 billion annually. These funds are split between maintaining traditional production capacity and accelerating the build-out of alternative generation. TotalEnergies projects that this expansion will increase free cash flow by approximately $10 billion between 2025 and 2030.

The company is targeting an annual energy production growth rate of 4%, aiming for a total output of 100 to 120 TWh by 2030. This growth is coupled with a mandate to reduce carbon emissions, as the company navigates a global environment of rising environmental taxes and shifting utility tariffs.