TotalEnergies CEO Alarms on Record Refining Margins and Geopolitical Supply Risks

TotalEnergies CEO Patrick Pouyanné stated that global refining margins have reached unprecedented levels, significantly impacting product prices, amid ongoing geopolitical tensions affecting oil and gas supplies.

Soaring Refining Margins

• Pouyanné told CNBC at S&P Global's CERAWeek conference that refining margins for products such as Asian jet fuel are at historic highs.
• He emphasized that the products market is "much higher than Brent," directly affecting customer prices.

Impact of Iran Conflict

• Roughly 15% of TotalEnergies' production is offline due to the conflict with Iran.
• Approximately 30% of global fertilizer shipments transit the Strait of Hormuz, jeopardizing the spring planting season.

LNG Market and Price Forecasts

• TotalEnergies, a major LNG exporter, can still fulfill orders thanks to its diversified portfolio.
• QatarEnergy's plant damage from Iranian attacks removed 20% of global LNG supply, surging prices.
• Pouyanné warned European natural gas prices could reach $40 per million British thermal units if the conflict extends into summer.

Strategic U.S. Energy Shift

• TotalEnergies secured a $1 billion deal with the Trump administration to abandon offshore wind projects.
• Funds will be redirected to U.S. oil, gas, and onshore renewable energy, as offshore wind is deemed "marginal" and unaffordable in the U.S. context.

Tech Sector Renewable Partnerships

• The company signed a 15-year renewable power supply agreement with Google for data centers.
• TotalEnergies is in discussions with Amazon and Microsoft, positioning itself as a key energy partner for hyperscalers.