Hamelle's comments came during a presentation of Total's energy outlook, which projects global energy demand scenarios through 2050. The company's "current trends" scenario also does not include any projections for the U.S. lifting its current ban on new liquefied natural gas (LNG) export facilities.

Significance

Ahead of the U.S. elections, Trump has been campaigning on a platform that includes the rollback of several climate regulations enacted under President Joe Biden, which are aimed at reducing greenhouse gas emissions from the oil and gas sector. This agenda could potentially include exiting the Paris Agreement, in which countries have committed to limiting global warming to 2 degrees Celsius by 2050, and repealing Biden's IRA, which offers substantial subsidies and incentives to clean energy technologies.

Context

TotalEnergies is a significant purchaser of U.S. natural gas for export, with 10 million metric tons per year under contract. It also holds numerous U.S. shale field investments and a pipeline of future projects. In addition, the company has a 25-gigawatt portfolio of solar, wind, and battery projects in the U.S. and is exploring various production sites for renewable fuels.

Key Statements

"We incorporate existing legislation in our current trends scenario, and for the IRA to be challenged, a Republican-controlled Congress would be necessary, which polls indicate is unlikely," said Hamelle.

"What we observe with the IRA is that it has created a support structure for private financing across all low-carbon technologies, and Republican-led states and districts have also gained from job creation in these areas.

"What is clear is that the United States will continue to lead the global energy transition. We have not anticipated a ‘worse-than-current-trends' scenario."