TotalEnergies Oil

TotalEnergies is a major global oil and gas company headquartered in Paris, France. The company operates in more than 130 countries and has over 100,000 employees worldwide.

TotalEnergies is involved in all aspects of the oil and gas value chain, including exploration, production, refining, petrochemicals, lubricants, and renewable energy. The company's exploration and production activities are focused on finding and producing oil and gas from conventional and unconventional sources.

TotalEnergies has upstream operations located across five continents, with major production hubs in Africa, the Middle East, Europe, Asia Pacific, and the Americas. The company has made several large discoveries in recent years, including major offshore fields located off the coasts of South America and West Africa.

In addition to exploration and production, TotalEnergies owns refineries and petrochemical plants in Europe, the United States, the Middle East, and Asia. This downstream segment refines crude oil into various petroleum products such as gasoline, diesel, heating oil, jet fuel, and petrochemical feedstocks.

TotalEnergies is among the world's largest integrated oil and gas companies and is a leader in liquefied natural gas (LNG). The company is also expanding into low-carbon energy sources such as solar, wind, and biofuels to support the transition to a lower-carbon future.

Oil Exploration

TotalEnergies is engaged in oil exploration activities worldwide. The company has upstream operations across multiple continents, including:

• Africa - TotalEnergies has major upstream operations in Nigeria, Angola, Republic of the Congo, Gabon and other African countries. The company has made significant oil discoveries offshore Nigeria and Angola.

• Europe - TotalEnergies conducts exploration activities in the North Sea, including offshore UK and Norway. It also has operations in Russia.

• South America - TotalEnergies has upstream operations in Brazil, Guyana, Suriname and other South American countries. Major recent discoveries have been made offshore Guyana and Suriname.

• Asia Pacific - TotalEnergies has exploration operations in countries like Iraq, United Arab Emirates, Qatar, Yemen, Myanmar, and others.

• North America - While production dominates in the US and Canada, TotalEnergies also undertakes some exploration for new resources in these regions.

The company engages in seismic surveys, exploratory drilling, and other activities to find new oil resources around the world. This exploration enables TotalEnergies to replenish reserves and underpin future production.

Oil Production

TotalEnergies is one of the world's largest oil producers, with operations spanning across multiple continents. The company has significant oil production capacity thanks to its upstream activities which include oil exploration, development, and extraction.

Some key facts about TotalEnergies' oil production:

• Produces over 2.7 million barrels of oil equivalent per day. This makes TotalEnergies among the top 10 largest publicly traded oil and gas companies by production.

• Operates oil fields across 25 countries, with major production centers located in Norway, Nigeria, Angola, Russia, the United Arab Emirates, Iraq, Canada, and Brazil among others.

• Has stakes in several mega oil field projects such as Kashagan (Kazakhstan), Moho Nord (Republic of Congo), Egina (Nigeria), and Ichthys (Australia). These large-scale projects have substantially increased TotalEnergies' oil production volumes over the past decade.

• Possesses substantial proved reserves estimated at over 11 billion barrels of oil equivalent. This ensures continued high production levels for years to come.

• Continues to invest in expanding oil production through new field developments, enhanced oil recovery techniques, and acquisitions. Recent examples include the Arctic LNG 2 project in Russia and entry into the Brazilian pre-salt oil fields.

In summary, TotalEnergies' extensive global footprint, major project portfolio, and continuous investments position it as a highly capable oil producer at the forefront of the industry. The company shows no signs of slowing down oil production in the short to medium term.

Refining

TotalEnergies operates five refineries in France, with a total refining capacity of 359,000 barrels per day. The company's largest refinery is the Normandy refinery, which has a capacity of 156,000 barrels per day.

TotalEnergies' refining operations extend beyond France to include refineries in Belgium, Germany, Italy, Spain, the UK, the Netherlands, and Qatar. The company has a particularly strong presence in the European refining market.

The refineries use crude oil supplied by TotalEnergies' upstream operations as well as crude purchased on the international markets. The refineries produce gasoline, diesel, heating oil, jet fuel, lubricants, and petrochemical feedstocks.

TotalEnergies has invested significantly in its refining operations to increase complexity, improve conversion yields, and meet evolving environmental standards. The company is focused on continuing to enhance the competitiveness of its European refining operations.

Petrochemicals

TotalEnergies is a major player in petrochemicals, which are chemicals derived from petroleum and natural gas. The company produces a wide range of petrochemical products including polymers, aromatics, styrenics and specialty chemicals.

Some of TotalEnergies' major petrochemical facilities include:

• The Antwerp integrated refining and petrochemicals platform in Belgium, which produces aromatics like benzene, paraxylene and propylene.

• The Port Arthur refinery and petrochemicals complex in Texas, which makes materials like polyethylene and polypropylene.

• The Daesan integrated refining and petrochemicals site in South Korea, which manufactures styrene monomer and polystyrene.

• The Ras Laffan Olefins Company in Qatar, which produces ethylene and polyethylene.

TotalEnergies uses its expertise in refining hydrocarbons to manufacture these petrochemical building blocks efficiently. The company then supplies these materials to other industries like automotive, construction, electronics, packaging and textiles.

Petrochemicals represent a major growth area for TotalEnergies, with several new projects underway. This includes an expansion of the Port Arthur facilities in the US, additional polyethylene capacity in Saudi Arabia, and a new petrochemicals complex planned for India. The company is investing heavily to meet rising demand, especially in Asia.

Natural Gas

TotalEnergies is a major player in the natural gas industry. The company is involved in the exploration, production, liquefaction, transport, and marketing of natural gas.

Natural gas accounted for over 20% of TotalEnergies' hydrocarbon production in 2020. The company has natural gas resources and reserves around the world, including in the North Sea, Africa, the Middle East, Russia, and the Asia-Pacific region.

Some key aspects of TotalEnergies' natural gas business include:

• Exploration and production of natural gas in places like Qatar, Norway, Russia, the United Arab Emirates, and Australia. The company is continuing to invest in new natural gas projects.

• Liquefied natural gas (LNG) activities through investments in liquefaction plants and LNG carriers. TotalEnergies is a top LNG producer and is looking to grow its LNG portfolio.

• Development of floating LNG (FLNG) facilities which allow natural gas production offshore. The company operates the world's largest FLNG vessel.

• Investments in natural gas pipelines and infrastructure for transporting gas domestically and internationally.

• Trading of natural gas and LNG around the world to optimize supply and demand.

Natural gas is seen as a lower-carbon energy source than oil or coal. As the world looks to transition to cleaner energy, natural gas is expected to play an important bridging role for TotalEnergies and other energy companies. Expanding natural gas operations allows TotalEnergies to meet increasing energy demand while also reducing emissions.

Renewable Energy

TotalEnergies has made significant investments in renewable energy in recent years as part of its transition toward cleaner energy sources. The company aims to have 35 gigawatts of gross renewable electricity generation capacity by 2025.

Some of TotalEnergies' major renewable energy projects and investments include:

• Offshore wind farms - TotalEnergies is involved in developing several major offshore wind farms in Europe, including the Seagreen project in Scotland, the Erebus project in Wales, and offshore wind projects in France. The company is aiming for over 10 gigawatts of gross offshore wind capacity by 2030.

• Solar energy - TotalEnergies has solar operations in several countries, including France, Spain, Chile, India, and the United States. The company is one of the top international utilities in solar energy and is targeting over 10 gigawatts of gross solar capacity by 2025.

• Energy storage - TotalEnergies is investing in utility-scale energy storage such as lithium-ion batteries to support the growth of renewables and provide grid services. It has projects in operation or under development in France, Australia, India, and other countries.

• Biogas - TotalEnergies is involved in producing biogas from organic waste through anaerobic digestion plants in Europe and the US. This provides renewable natural gas to replace fossil fuels.

• Hydrogen - TotalEnergies is conducting research into producing clean hydrogen from renewable electricity as a sustainable energy carrier. It is involved in several pilot projects testing hydrogen infrastructure and applications.

• Biofuels - TotalEnergies produces and markets sustainable biofuels for the transportation sector at its biorefineries in France and Spain.

• Venture capital - TotalEnergies has a venture capital arm that invests in innovative startups developing new renewable energy technologies such as smart grids, storage, and solar.

Sustainability

TotalEnergies is committed to sustainability and reducing emissions across its operations. The company has set targets to achieve net zero emissions by 2050.

Some key efforts include:

• Investing in renewable energy like solar, wind, and biofuels. TotalEnergies aims to have 35GW of renewable power capacity by 2025.

• Improving energy efficiency at refineries and chemical plants to reduce emissions. The company implemented over 500 energy efficiency projects between 2010-2020.

• Developing carbon capture and storage technology to prevent CO2 emissions from reaching the atmosphere. TotalEnergies is involved in multiple CCS projects around the world.

• Promoting natural carbon sinks like forests and biomass. The company has initiatives to plant trees and conserve forests in countries where it operates.

• Phasing out routine flaring, which is the burning of excess gas during oil production. TotalEnergies aims to end all routine flaring by 2030.

• Investing in research and innovation to develop low carbon technologies and energy sources. This includes advanced biofuels, hydrogen, and energy storage solutions.

• Offsetting carbon emissions through certified carbon credits. The company is using offsets to work towards carbon neutrality.

TotalEnergies is evolving its portfolio and operations to support the transition to a lower carbon future while still providing access to reliable energy. Its sustainability efforts are key for reducing environmental impacts and addressing climate change.

Financial Performance

TotalEnergies has performed well financially in recent years despite volatility in oil and gas markets. The company reported revenues of $205 billion in 2021, up 60% from 2020. Net income was $16 billion, a significant turnaround from the $7.2 billion loss in 2020.

Several factors contributed to TotalEnergies' strong financial results in 2021:

• Higher oil and gas prices - Benchmark Brent crude averaged $70 per barrel in 2021, up from $42 in 2020. Natural gas prices also saw a major increase. This pricing environment boosted TotalEnergies' upstream production revenue.

• Production growth - TotalEnergies' hydrocarbon production grew by 5% in 2021 to 2.8 million barrels per day. New projects ramping up output offset declines elsewhere. Liquids production increased driven by projects like Johan Sverdrup in Norway.

• Cost discipline - TotalEnergies has taken steps to reduce operating costs and capital expenditures. It cut organic capex by 25% from 2020 to 2021. The company aims to keep production costs below $5 per barrel for key upstream projects. This cost discipline protects profitability.

• Refining margins - TotalEnergies' downstream business benefited from a rebound in refining margins as demand recovered. Refining margins doubled in Europe from 2020.

TotalEnergies' financial position remains robust, with gearing of 21.7% at end 2021. The company expects continued strong cash flow generation to fund new investments and shareholder returns. However, volatility in commodity prices creates uncertainty looking ahead.

Conclusion

TotalEnergies is a major global energy player that produces and markets fuels, natural gas, and electricity. The company has operations in more than 130 countries and employs over 100,000 people.

While TotalEnergies has traditionally focused on oil and gas, it has been transitioning its business model to adapt to the global energy transition. The company is expanding into renewable energy, including solar and wind power. TotalEnergies aims to achieve carbon neutrality by 2050.

Despite economic challenges in recent years, TotalEnergies remains financially strong. It continues to invest in new oil and gas projects as well as clean energy. The company's diverse business segments provide some resilience to fluctuations in commodity prices.

Looking ahead, TotalEnergies is well-positioned to remain a leading international energy company. However, it faces competition from other oil majors also pursuing low carbon strategies. Much depends on successfully managing its transition away from fossil fuels. But with its large size and resources, TotalEnergies has the scale required to keep evolving its business model. The coming years will determine how well the company can maintain profits while pivoting toward a more sustainable energy mix.