Among the largest European oil and gas companies, TotalEnergies has arguably been the most consistent in its approach. Patrick Pouyanné, chief executive since 2014, has repeatedly emphasized the need for continued investment in oil and gas, while also growing a “low-carbon” integrated power business that he expects to become cash flow positive in 2028.
“You can look at Total’s transition ambition, compare it with transition performance, and see that it is the one that is delivering on its promises.”
However, Big Oil is unlikely to lead from the front, choosing instead to build the capability to enter new markets for lower-carbon energy products as demand changes. “Without very clear pricing and incentivization models, it is difficult to say, ‘we’ll build it and they will come’.”
Yet, Big Oil sits at the intersection of all these things, and its ability to create and connect markets could be one of the very real enablers of the transition.
Overall, there is poor alignment to society's goals and what appears to be lacking in general is a combination of strong leadership, supportive policies, innovative technologies, consumer demand, and a collaborative approach to drive the oil and gas industry towards a faster transition to a low-carbon future. Thinking ahead and avoiding short-termism is key. This is an existential moment for the oil and gas industry, with few rising to the challenge it seems.
#energytransition #bigoil #society #leadership #totalenergies
Founder at Ru'ya Funds & Co-Founder at AK CAPITAL GLOBAL
4 天前Interesting insights from CEO Patrick Pouyanné! TotalEnergies' commitment to affordable and reliable energy is crucial as we navigate the transition to more sustainable practices. It’s important to engage in constructive dialogue about these strategies. Looking forward to seeing how the company balances growth with environmental responsibility!