France’s Total S.A., the world’s 4th ranked multinational oil and gas company, envisions a green energy future where electricity is king and crude oil is but a distant memory.
Across the globe, oil companies are facing big challenges.
For over a century, oil companies have operated under the same business model—oil is pumped from the ground, refined, and sold on the open commodities market.
By taking possession of all links in the supply chain, Total is boldly pursuing a new business model. The French oil giant has purchased a small utility company in Belgium, a gas and renewable power supplier, and acquired the majority stake in SunPower Corp., a US solar panel manufacturer. In addition, they bought a French manufacturer of industrial batteries. Total S.A. can now produce, store, and sell green power.
Total S.A. Investment in Renewable Energy
Across the globe, oil companies are facing big challenges. Demand is down, and prices are falling. Most electricity is generated by burning natural gas or coal. Global pressures are on to go green, both in power generation and in transportation. It’s becoming too expensive and unprofitable to sustain the old business model.
Patrick Pouyanné, Total Chairman and Chief Executive, intends to turn Total into one of the world’s largest suppliers of electricity—“the energy of the 21st century.” Pouyanné has set a goal to have 20% of its total energy output as low-carbon, green energy.
It’s highly likely that other big oil players like Exxon Mobil Corp and Royal Dutch Shell PLC are closely watching Total’s progress.
Boldly leading the way towards a clean energy future, oil giant Total S.A. sees its future in Electricity.