^{Photo: Bloomberg News}

TotalEnergies chairman and CEO Patrick Pouyanné told CNBC that the world is witnessing refining margins at levels “never experienced before,” driven by elevated product prices amid geopolitical turmoil. Speaking at S&P Global’s CERAWeek energy conference in Houston, Pouyanné said while Brent crude remains above $100 per barrel, refined products—including Asian jet fuel—are commanding premiums that significantly outpace crude, putting pressure on global supply chains and end-user costs.

The war in Iran has temporarily sidelined roughly 15% of TotalEnergies’ production, but soaring margins have more than offset lost output. Pouyanné noted that about 30% of global fertilizer passes through the Strait of Hormuz, meaning disruptions could jeopardize spring planting seasons worldwide. Despite these challenges, TotalEnergies’ diversified LNG portfolio allows the company to continue fulfilling orders across Europe and Asia, though European natural gas prices, currently around $18 per million British thermal units (MMBtu), could spike to $40/MMBtu if the conflict persists into the summer.

TotalEnergies is also adjusting its U.S. energy strategy. The company recently agreed to scrap its East Coast offshore wind projects in a $1 billion deal with the federal government, reallocating capital toward onshore oil and gas initiatives. Pouyanné emphasized that in the U.S., where land, gas, coal, and solar capacity are abundant, offshore wind is “marginal” and not cost-effective. “I prefer to allocate my capital to technologies which are more efficient, which give affordable electricity to customers,” he said.

The French energy giant continues to expand its renewable footprint through strategic partnerships with tech hyperscalers. TotalEnergies recently signed a 15-year renewable power supply agreement with Google to power data centers and is in discussions with Amazon and Microsoft. Pouyanné stressed that the company’s combined capabilities in energy production, trading, and land access make it a “strong partner” for large-scale corporate energy needs.

With record-high refining margins, persistent geopolitical risks, and strategic capital reallocation, TotalEnergies is navigating a volatile energy landscape while positioning itself as a flexible partner for both traditional and renewable energy markets globally.