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Total wants to produce more hydrocarbons until 2030 to keep up with demand

2021-02-23T14:16:16.289Z

The oil giant Total does not anticipate a drop in demand for hydrocarbons before 2030, its CEO said at the International Petroleum Week conference on Tuesday, and intends to support it by increasing its production over the period. " We do not anticipate a drop in demand for oil and gas before 2030 ", explained Patrick Pouyanné during an intervention during a cycle of conferences of the oil industr



The oil giant Total does not anticipate a drop in demand for hydrocarbons before 2030, its CEO said at the International Petroleum Week conference on Tuesday, and intends to support it by increasing its production over the period.

"

We do not anticipate a drop in demand for oil and gas before 2030

", explained Patrick Pouyanné during an intervention during a cycle of conferences of the oil industry which, Covid-19 requires , is held by videoconference and not in London as until last year.

Read also: Hydrocarbons: Eni reports an abysmal loss of 8.56 billion euros in 2020

Consequently, Total plans to increase its daily production of oil and gas equivalent from 3 million barrels currently to 4 million by 2030, thanks to the expected reinforcement of liquefied natural gas (LNG) and renewables.

"Proud to produce oil"

The major, however, remains "

very proud to produce oil,

" said Pouyanné, recalling that the world economy was still largely dependent on fossil fuels.

"

The energy transition must be made but it will take time because renewable energies are expensive to implement,

" continued the boss of the energy giant, who has committed to achieving carbon neutrality by 2050.

Read also: USA: sharp drop in crude oil inventories

But if he remains “

cautious

” for the current year, Mr. Pouyanné expects an increase in Total's

cash flow

since “

an increase in the price of a barrel of 10 dollars brings 3.2 billion in cash flow

” to the company, he explained.

But the barrel of Brent, the European benchmark, has gone from just over $ 35 in early November, just before the announcement of the Covid-19 vaccines, to $ 65 these days.

The subject of "

peak oil

" ( "

peak oil

" in English) is widely discussed in the industry, many players wondering whether demand will bounce really coming years beyond the maximum that would have been reached in 2019. Since then, the pandemic has plunged demand for hydrocarbons, and the energy transition is undermining long-term prospects.

Overdue finances

For a long time, experts have sought to determine when the world's oil reserves will begin to decline.

Today they are wondering above all about the moment when it is demand that will start to shift.

In the meantime, the finances of the majors suffered last year.

Total, for example, announced earlier this month a net loss of $ 7.2 billion in 2020, against a profit of 11.2 billion in 2019, due to depreciations and low oil prices due to the health crisis.

Read also: Total: end of the strike at the Grandpuits refinery

Its European and American competitors shared similar results.

The group also plans to mark its diversification beyond oil by adopting a new name: TotalEnergies.

Presented at the time of the annual results this month, it will be offered to shareholders in the spring.

Source: lefigaro

All business articles on 2021-02-23

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