In an interview with the Financial Times, TotalEnergiesCEO Patrick Pouyanné stressed the need for governments to acknowledge that the transition to low-carbon solutions would likely lead to higher energy prices globally.
“We think that fundamentally this energy transition will mean a higher price of energy,” Pouyanné told FT.
Pouyanné emphasized that policymakers must be transparent about the potential cost implications for consumers to avoid misrepresentation of the transition.
Pouyanné pointed out that simply reducing oil and gas production without viable alternatives in place could be naive and unrealistic, especially considering the current reliance on fossil fuels to meet global energy demand.
“We cannot ask African countries just to avoid developing the resources because we have developed their resources for our own comfort for 20 years,” Pouyanné, who has been leading TotalEnergies for a decade now, told FT.
TotalEnergies, among European majors, has maintained a consistent message to investors regarding its strategic priorities amid the energy transition. The company has emphasized growth in oil and gas production, particularly in LNG, alongside investments in integrated power solutions.
Data analyzed by the Financial Times shows that TotalEnergies has consistently delivered strong returns to shareholders compared to its competitors since 2014, outperforming major players like Chevron, Exxon, Shell, and BP.
Recently, TotalEnergies announced a 7.1% increase in its ordinary 2023 dividend compared to 2022, along with completing $9 billion in share buybacks. The company’s board confirmed a shareholder return policy for 2024 targeting a payout of more than 40% of cash flow from operations (CFFO).
TotalEnergies is set to expand its oil and gas production through new projects in Africa, Brazil, and Iraq. Additionally, the company announced a significant discovery of light oil with associated gas in the Orange Basin offshore Namibia, which has the potential to be a substantial oil and gas reservoir