To achieve carbon neutrlity, the global energy mix will have to evolve considerably.
TotalEnergies is already carving out a position in this future energy supply and diversifying its energy miz accordingly, reducing the share of its petroleum products and increasing natural gas, as a traditional fuel, and renewables electricity. The markets for low-carbon electricity and gas (natural gas, biogas and hydrogen) will need to grow, while coal will have to be eliminated and demand for oil will need to stabilize and then decline.
Our energy mix could stand at 50% gas, 30% petroleum products, 15% majority-renewable and 5% biomass and hydrogen by 2030. The shift in the mix towards lower-carbon products will allow us to reduce the lifecycle carbon intensity of energy products sold by at least 20% by 2030.
Investments aligned with our multi-energy strategy
The challegnge posed by the energy transition is to move as quick as possible from the current energy system (which is more than 80% based on fossil fuels) to a decarbonized system. For a Company like TotalEnergies, that means continuing to supply our customers with the energy they need now, while accelerating our investment in the low-carbon energies that will dominate in the future: we must invest in both systems simultaneously and strike the right balance to ensure a just transition.
In 2022 our investments totaled 16.3 billion dollars, including 4 billion dollars in low-carbon energies. In 2023, we expect that figure to increase to 5 billion dollars. That sum exceeds our projected capital expenditure for new oil & gas projects (4.5 billion dollars).
In the coming years, investments in low-carbon energies will represent 1/3 of our investments, more than new oil&gas projects (30%). Consistent with our commitment to build a multi-energy company, we have decided to publish financial indicators for the Integrated Power segment as of the first quarter of 2023 to demonstrate our ability to combine profitable growth and sustainable development while generating value for our shareholders.