PRESS RELEASE
TotalEnergies will increase fossil fuel production by 2030 by growing its natural gas production, the company shared in its strategy presentation in New York today (2022 Strategy & Outlook, slide 15).
“Growing fossil fuel production this decade is incompatible with the goal of the Paris Climate Agreement,” says Tarek Bouhouch, Follow This France. “This increase contradicts the IEA’s and UN’s call for fossil fuel reductions:”
Secretary-general of the United Nations António Guterres: “Nothing could be more clear or present than the danger of fossil fuel expansion. Even in the short-term, fossil fuels don’t make political or economic sense.”
The International Energy Agency (IEA): “There is no need for investment in new fossil fuel supply in our net zero pathway.”
Next to increasing its fossil fuel business, TotalEnergies is also planning to increase its Electricity & Renewables business (slide 15).
“It is good to see that TotalEnergies is increasing their electricity and renewables business by 2030. We believe that TotalEnergies can shift their investments and lead the energy transition. The windfall profits of this year provide a great opportunity to do so.”
The current opportunity of oil and gas companies to shift their investments is underlined by the IEA: “These windfalls gains provide a once-in-a-generation opportunity […] for major oil and gas companies to do more to diversify their spending.”
In light of the Energy crisis
“TotalEnergies states that they will share their surplus cash-flow from the high oil and gas prices through buybacks and special dividends (slide 13). As long-term investors, we would like to see it invested in the renewable energy transition instead”
“Tackling the climate crisis and the energy crisis can go hand in hand. In the current energy crisis, fossil fuels are crucial for the short term. However, new investments will not help the energy crisis because they take years to begin producing. Renewable energy will play a crucial role in providing energy security and ensuring a safe climate.”
This was further exemplified by the IEA’s executive director: “This [energy] crisis is a stark reminder of the unsustainability of the current energy system, which is dominated by fossil fuels. We have the chance to make this a historic turning point towards a cleaner, more affordable, and more secure energy system. And this is already happening.”
