economy
World has 'never experienced' soaring refining margins like this, TotalEnergies CEO tells CNBC
TotalEnergies CEO Patrick Pouyanné on the Iran war, the $1 billion deal with the White House, investment in the U.S., and more.
TL;DR
- Approximately 15% of TotalEnergies' production is offline due to the war with Iran, but surging oil prices have compensated for lost barrels.
- The CEO highlighted that product prices, not just oil prices, are at unprecedented levels, with refining margins exceeding historical highs.
- The conflict also jeopardizes global fertilizer supply, with about 30% moving through the Strait of Hormuz.
- TotalEnergies can still fulfill LNG orders in Europe and Asia due to its diversified global portfolio.
- The company abandoned its U.S. offshore wind projects for $1 billion and plans to reinvest in U.S. oil and gas projects.
- Pouyanné believes U.S. offshore wind is not economically viable given cheaper alternatives and prefers investing in more efficient and affordable technologies.
- TotalEnergies has secured agreements with hyperscalers like Google, Amazon, and Microsoft for renewable power supply.