During a speech at the International Petroleum Exhibition and Conference (ADIPEC) in Abu Dhabi, TotalEnergies CEO Patrick Pouyanne acknowledged a slowdown in Chinese oil demand growth, attributing it to the country’s shift towards greener energy sources. He noted that while China previously contributed significantly to global oil demand, its growth has decreased from approximately 600,000 barrels per day in earlier years to around 300,000 barrels per day now. Despite this decline, Pouyanne expressed confidence in the long-term outlook for oil prices, citing increasing demand from India as a counterbalance.
As India transitions to a more manufacturing-driven economy, Pouyanne highlighted that its demand growth is around 200,000 barrels per day. TotalEnergies plans to increase its oil and gas production by 3% annually, focusing on projects with low breakeven costs to navigate potential fluctuations in oil prices. He emphasized that the company’s strategy is to remain resilient during periods of low prices and to capitalize on high prices when they arise. With a breakeven point below $30 per barrel before dividends and under $50 afterward, Pouyanne conveyed confidence in TotalEnergies’ ability to withstand market volatility.