TotalEnergies(US:TTE) Zhi Tong Cai Jing·2025-12-17 06:59Group 1: Oil Market Outlook - The CEO of Total, Patrick Pouyanne, believes that despite recent declines in oil prices due to concerns over global oversupply, rising oil demand will help support prices [1][2] - Oil supply is expected to exceed demand this year and next, leading to an anticipated annual decline in oil prices, with Brent crude falling below $60 per barrel for the first time since May [1][2] - Pouyanne expresses confidence that OPEC and U.S. producers will manage output effectively to avoid exacerbating oversupply, and he notes that if prices fall too low, U.S. shale producers will cut back on production [2][4] Group 2: Natural Gas Market Outlook - Pouyanne holds a more pessimistic view on the natural gas market, predicting that prices may decline by 2027 due to new LNG projects coming online in Qatar and the U.S. [5] - European natural gas prices are currently at their lowest levels since spring 2024, driven by mild weather and ample supply, despite the EU's plans to ban Russian LNG imports starting January 2027 [5] - Total is reducing exposure to the spot market and increasing long-term contracts with Asian buyers to mitigate the impact of falling gas prices [5] Group 3: Company Strategy and Investments - Total has been strengthening its operations in the U.S. while reducing its presence in Russia, having recorded a $14.8 billion impairment charge on its Russian assets due to the Ukraine conflict [6] - The company is resuming work on its LNG project in Mozambique after a four-year hiatus and plans to start production by late 2028 or early 2029 [5][6] - Total has approved a $1 billion investment in a solar project in Texas to supply a leading tech company, indicating a strategic shift towards U.S. investments [7]