February 2022 Results and Outlook
Buoyant interconnected energy markets
Oil
$/b
Gas
Electricity
$/Mbtu
€/MWh
JKM
300
90
90
Brent
30
70
70
50
Jan-21
Jul-21
Jan-22
20
10
Jan-21
Jul-21
NBP
re
TotalEnergies
Europe 7**
200
100
Henry Hub
Jan-22
Jan-21
Jul-21
Jan-22
→ Demand recovering to pre-pandemic levels
→ OPEC+ discipline on supply increase
→ Several years of low investment leading
to tension on supply and supporting high
prices
→ 2021:375 B$ upstream Capex* in line with
IEA NZE but not enough to meet growing
demand
→ 2021: Gas clearly established as transition
fuel: most flexible option to ensure
power reliability and alternative to coal
→ Gas consumption and prices supported
by low hydro and intermittent renewables
production
→ LNG demand at record level driven by Asia,
constrained by supply
→ China leading importer with 80 Mt (+17%)
→ 2H21: competition for LNG between Europe
and Asia
→Gas and CO2 driving record electricity prices
in Europe in 4Q21
→ Market price set by marginal production
(CCGT) with peaks > 300 €/MWh
→ EU ETS emissions allowances reaching
> 80 €/t
* source: Rystad Energy
2021: execution and delivery
** Average of France, Germany, Belgium, Netherlands, Spain, Italy, UK
February 2022 - Results and Outlook 6View entire presentation