TotalEnergies Pivoted Toward US Upstream Oil and Gas
The energy major has targeted US shale assets to hedge against global supply shocks and secure stable gas pricing.
Updated on Sept. 29, 2026 in Oil and Gas
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TotalEnergies CEO Patrick Pouyanne confirmed the company intends to acquire additional upstream oil and gas assets in the United States to expand its integrated energy strategy. This shift aims to strengthen the company's control over its LNG supply chain in an increasingly volatile global market.
Why it matters
Management is prioritizing US-based investments to mitigate geopolitical risks and insulate operational costs from gas price spikes. By locking in equity and offtake rights at regional terminals, the firm seeks protection from volatile benchmarks like Henry Hub.
US LNG feedgas demand hit 19.5 billion cubic feet per day in September 2026, representing a 16% year-over-year increase while Henry Hub prices remained below $3 per million British thermal units. TotalEnergies also maintains a 49% stake in Continental Resources' Anadarko assets.
The players
TotalEnergies
An integrated multi-energy company with significant global operations in oil, natural gas, and renewable energy.
Patrick Pouyanne
The CEO of TotalEnergies who is currently steering the firm toward increased North American upstream exposure.
Continental Resources Inc.
A major independent oil and gas producer that holds significant exploration and production assets in the Anadarko Basin.
The details
TotalEnergies executes its US strategy by acquiring non-operated positions in key basins like the Eagle Ford and Barnett Shale to feed its integrated LNG network. This model links regional production to export terminals in Texas and Louisiana, allowing the firm to capture value across the entire supply chain. By controlling its own feedgas, the company reduces dependency on spot market fluctuations that have historically threatened margins during regional price volatility.
Timeline
September 2025: TotalEnergies acquired a 49% stake in Anadarko gas assets.
September 2026: Average US LNG feedgas demand reached 19.5 Bcf/d.
September 28, 2026: CEO Patrick Pouyanne discussed the firm's US upstream strategy.
Market Landscape
TotalEnergies' focus on US upstream assets aligns with the broader industry trend of surging US LNG feedgas demand. This move mirrors the strategic priority of multinational energy firms seeking to localize supply chains to neutralize the price impact of Middle East instability.
Operators in energy-adjacent sectors should monitor how increased competition for upstream shale assets affects regional lease rates and local service demand. Business owners should factor long-term gas price stability into their energy-intensive procurement and production planning.
The takeaway
TotalEnergies' move highlights the growing necessity for firms to internalize energy supply chains as a shield against global geopolitical volatility. Operators should track domestic LNG feedgas demand as a primary indicator for potential changes in local industrial fuel costs.
Further reading
For more on the shifting energy landscape, visit the Oil and Gas section.
Source note: This article includes information reported by Hellenic Shipping News.
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