TotalEnergies (TTE) Stock Falls as $1 Billion Shifts From Wind to Oil and Gas

TLDR

• TotalEnergies has agreed to abandon all U.S. offshore wind projects in a deal with the Department of the Interior
• The U.S. government will reimburse TotalEnergies ~$928 million it paid for offshore wind leases
• TotalEnergies will reinvest that money into U.S. oil, gas, and LNG projects in 2026
• Key investments include the Rio Grande LNG plant in Texas and Gulf of America oil operations
• TTE stock fell 1.03% on the day of the announcement

TotalEnergies reached a deal with the U.S. Department of the Interior on Monday to walk away from its offshore wind leases in exchange for a full dollar-for-dollar reimbursement of the lease fees paid.

TotalEnergies SE, TTE

The French energy giant will redirect roughly $928 million into U.S. oil, natural gas, and LNG production — a clean pivot from renewables to fossil fuels.

The agreement is framed by the Trump administration as part of its “Energy Dominance Agenda,” with Interior Secretary Doug Burgum calling offshore wind “one of the most expensive, unreliable, environmentally disruptive, and subsidy-dependent schemes ever forced on American ratepayers.”

TotalEnergies CEO Patrick Pouyanné said the company sees this as a “more efficient use of capital” in the U.S. TTE stock slipped 1.03% on the day, while crude oil futures (CL) dropped a steeper 9.51%.

What TotalEnergies Is Investing In

The $928 million will be deployed across two areas in 2026. First, development of Trains 1 through 4 of the Rio Grande LNG plant in Texas. Second, upstream conventional oil in the Gulf of America and shale gas production.

The Rio Grande LNG plant, a 29 million tonne per year facility, is central to the deal. Pouyanné specifically flagged LNG exports to Europe and gas supply for U.S. data centers as key use cases for the investment.

On the wind side, TotalEnergies is giving up two leases. One in the Carolina Long Bay area, purchased for $133 million in 2022. The other in the New York Bight area, purchased for $795 million in 2022 — the bulk of the reimbursement.

Both leases will be terminated by the U.S. government following TotalEnergies’ confirmed investment in the oil and gas projects.

TotalEnergies also pledged not to develop any new offshore wind projects in the United States going forward.

The Deal’s Structure

The reimbursement is conditional. TotalEnergies must first put the $928 million into the qualifying U.S. energy projects, and only then will the government terminate the leases and return the money.

Natural gas futures (NG) also fell 5.12% on the day, though it’s unclear how much of that move is tied to the TotalEnergies news versus broader market pressure.

TTE shares were down 1.03% as of Monday’s session.

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