Global Oil Demand Growth Slows Amid Supply Constraints
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: NASDAQ.COM
- Demand Growth Slowing: The International Energy Agency projects that global oil demand growth will decelerate due to rising electric vehicle adoption, improved fuel efficiency, and a slowing Chinese economy, yet oil prices remain above $90 per barrel, indicating a complex market with investment opportunities.
- Chevron's Financial Strength: Chevron continues to generate massive free cash flow at elevated oil prices and has expanded its long-term production capacity through the acquisition of Hess, particularly in the rapidly growing Guyana oil field, enhancing its competitive position in the market.
- TotalEnergies' Diversification: TotalEnergies has aggressively expanded into liquefied natural gas, solar, and wind sectors, now operating one of the world's largest LNG portfolios, which is expected to benefit from Europe's shift away from reliance on Russian gas, further strengthening its market position.
- Ongoing Shareholder Returns: Despite pressures on global oil prices, both Chevron and TotalEnergies continue to return capital to shareholders through dividends and buybacks, with Chevron's dividend yield around 3.6% and TotalEnergies near 4.5%, reflecting their stable financial strategies.
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Analyst Views on TTE
Wall Street analysts forecast TTE stock price to fall
16 Analyst Rating
8 Buy
8 Hold
0 Sell
Moderate Buy
Current: 87.170
Low
60.04
Averages
71.67
High
90.93
Current: 87.170
Low
60.04
Averages
71.67
High
90.93
About TTE
TotalEnergies SE is a France-based company. The Company is predominantly engaged in the business as a worldwide oil group. Its segment divisions are divided into refining and chemistry such as refining of petroleum products and manufacture of basic chemistry and of specialty chemistry, petroleum products distribution, electricity generation from combined cycle gas plants and renewable energies, gas production, trading, transport and distribution primarily includes liquefied natural gas, natural gas, biogas, hydrogen, liquefied petroleum gas and hydrocarbon operating and production. The group is also operating in trading and sea transport of crude oil and oil products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Director Renewals: The meeting renewed the three-year terms for Marie-Christine Coisne-Roquette, Anelise Lara, and Dierk Paskert, ensuring continuity and stability in corporate governance, which aids in maintaining strategic direction consistency.
- Compensation Policy Approved: Shareholders approved the compensation policy for directors and the components for 2025, which will help attract and retain executive talent while aligning compensation with company performance, thereby enhancing management incentives.
- Sustainability Discussion: The meeting discussed the implementation report on the corporation's ambitions regarding sustainable development and energy transition, indicating TotalEnergies' commitment to global energy transformation, which is expected to strengthen its competitiveness in the renewable energy market.
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- Profit Controversy: TotalEnergies has faced criticism for its substantial profits driven by rising oil prices due to the Middle East conflict, with French politicians advocating for a supertax to fund energy aid for consumers, highlighting the tension between government policy and corporate profitability.
- Price Cap Commitment: CEO Patrick Pouyanne stated that French citizens prefer energy companies to cap fuel prices rather than impose a superprofit tax, indicating public sensitivity to energy costs and the complexities of government intervention in the energy sector.
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- Renewable Energy Scale: The Centre Manche project will be the largest renewable energy project ever developed in France, expected to generate approximately 6 TWh of green electricity annually, enough to power over 1 million French homes, significantly enhancing the country's renewable energy supply capacity.
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- Escalation of Military Actions: New U.S. airstrikes in Iran targeted a military site deemed a threat to U.S. forces and commercial maritime traffic, adding uncertainty to the ongoing diplomatic negotiations and prompting investors to reassess risk levels in the market.
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TotalEnergies Shareholders Approve All Resolutions
- Financial Statements Approved: The TotalEnergies shareholders' meeting approved the 2025 financial statements and declared a dividend of €3.40 per share, reflecting the company's robust profitability and enhancing investor confidence, which is expected to positively impact the stock price.
- Director Renewals: The meeting renewed the three-year terms for Marie-Christine Coisne-Roquette, Anelise Lara, and Dierk Paskert, ensuring continuity and stability in corporate governance, which aids in maintaining strategic direction consistency.
- Compensation Policy Approved: Shareholders approved the compensation policy for directors and the components for 2025, which will help attract and retain executive talent while aligning compensation with company performance, thereby enhancing management incentives.
- Sustainability Discussion: The meeting discussed the implementation report on the corporation's ambitions regarding sustainable development and energy transition, indicating TotalEnergies' commitment to global energy transformation, which is expected to strengthen its competitiveness in the renewable energy market.
See More
Climate Activists Protest French Government's Stake in TotalEnergies
- Government Stake Increase: The French government, through the Caisse des Depots et Consignements, has acquired a 1.33% stake in TotalEnergies worth $2.8 billion, prompting climate activists to protest against further investments in fossil fuel projects and demand a supertax on profits.
- Profit Controversy: TotalEnergies has faced criticism for its substantial profits driven by rising oil prices due to the Middle East conflict, with French politicians advocating for a supertax to fund energy aid for consumers, highlighting the tension between government policy and corporate profitability.
- Price Cap Commitment: CEO Patrick Pouyanne stated that French citizens prefer energy companies to cap fuel prices rather than impose a superprofit tax, indicating public sensitivity to energy costs and the complexities of government intervention in the energy sector.
- Shareholder Support for Leadership: TotalEnergies shareholders overwhelmingly approved raising the age limits for the chair and CEO roles, allowing 62-year-old Pouyanne to continue leading the company until 2033, reflecting strong confidence in his leadership amidst ongoing challenges.
See More
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- Escalation of US-Iran Conflict: Following weeks of paused action, the US and Iran have resumed airstrikes, complicating hopes for a permanent resolution to the conflict, which is impacting global oil supplies and market sentiment.
- Strong Stock Market Performance: Despite rising geopolitical tensions, both the S&P 500 and Nasdaq Composite closed at record highs, primarily driven by a surge in AI-related stocks, indicating strong market confidence in the technology sector.
- Oil Price Warning: ExxonMobil has warned that oil inventories are on track to reach dangerously low levels in the coming weeks, forcing prices to spike and curbing demand, reflecting market concerns over energy supply.
- Wealthy Investors Pulling Out: According to the UBS Global Family Office Report, 60% of family offices plan to adjust their investment allocations in the next year, with many reducing US holdings and increasing exposure to emerging markets, highlighting a growing trend of 'de-dollarization'.
See More
TotalEnergies Applies for 1.5 GW Wind Project Authorization
- Project Application Progress: TotalEnergies officially applied for authorization of its 1.5 GW Centre Manche wind project off the Normandy coast on Thursday, eight months after being awarded the project by the French government, marking a significant step in the company's renewable energy strategy.
- Technical and Environmental Assessments: The application includes technical and environmental surveys, a preliminary design for the wind farm, and the planned installation program, ensuring compliance with environmental standards and facilitating smooth project advancement, reflecting the company's commitment to sustainability.
- Renewable Energy Scale: The Centre Manche project will be the largest renewable energy project ever developed in France, expected to generate approximately 6 TWh of green electricity annually, enough to power over 1 million French homes, significantly enhancing the country's renewable energy supply capacity.
- Economic and Employment Impact: This project represents a €4.5 billion (~$5.2 billion) investment and will create up to 2,500 jobs during the three-year construction phase, driving local economic development and increasing green job opportunities.
See More
TotalEnergies Applies for Authorization of France's Largest Renewable Project
- Project Application Progress: TotalEnergies' wholly owned Centre Manche Energies has officially applied for the Single Authorization of a 1.5 GW offshore wind farm located off the Normandy coast, marking a significant milestone for France's largest renewable energy project, which is expected to provide renewable electricity to nearly one million French homes.
- Environmental Impact Assessment: The application includes technical and environmental surveys, a preliminary design, and installation plans, ensuring compliance with regulatory requirements while enhancing social integration through regular discussions with government departments and consultations with local stakeholders.
- Significant Economic Benefits: With an investment of €4.5 billion, the project is expected to create up to 2,500 jobs during its three-year construction phase, while prioritizing the use of local workforce, thereby further driving regional economic development.
- Renewable Energy Portfolio: TotalEnergies' renewable energy portfolio in France includes 420 wind, solar, and hydropower facilities, aiming for nearly 36 GW of renewable generation capacity by 2026, positioning the company as a key player in the country's energy transition.
See More
U.S.-Iran Negotiation Fluctuations Impact Markets
- Oil Price Plunge: Oil prices dropped over 5% on Wednesday after Secretary of State Marco Rubio indicated that Washington was giving Iran talks 'every chance to succeed,' reflecting market sensitivity to diplomatic efforts and potentially impacting energy sector profitability.
- Escalation of Military Actions: New U.S. airstrikes in Iran targeted a military site deemed a threat to U.S. forces and commercial maritime traffic, adding uncertainty to the ongoing diplomatic negotiations and prompting investors to reassess risk levels in the market.
- Strong Tech Stock Performance: Shares of cloud-based AI and data platform company Snowflake surged 36% following a strong earnings report and a $6 billion investment plan in Amazon Web Services, showcasing investment enthusiasm and market confidence in the tech sector amid rising AI demand.
- Inflation Data Focus: Investors are closely watching the upcoming April inflation reading, which is expected to influence the Fed's future rate decisions, as Minneapolis Fed President Neel Kashkari emphasized that lowering inflation remains a top priority, indicating market sensitivity to economic policy.
See More
