HOUSTON: French energy giant Total Energies and the United States government have agreed to redirect nearly $1 billion from offshore wind investments toward oil and natural gas development, signaling a major policy shift in US energy strategy.
The move aligns with the administration of Donald Trump, which has actively discouraged offshore wind expansion while promoting domestic fossil fuel production. The company will halt development of new offshore wind projects in the US, while Washington will reimburse approximately $1 billion previously paid by TotalEnergies for lease acquisitions.
US Interior Secretary Doug Burgum described the agreement as a step toward ensuring “affordable and reliable energy,” criticizing offshore wind as costly, inefficient, and dependent on subsidies.
Under the revised strategy, TotalEnergies plans to invest $928 million in 2026 to expand oil and gas operations, including development at the Rio Grande LNG facility in Texas, upstream oil projects in the Gulf of Mexico, and shale gas production.
As part of the deal, offshore wind leases in the Carolina Long Bay and New York Bight areas—secured in 2022—will be terminated. TotalEnergies had paid $795 million for the New York lease during a major auction held under the administration of former President Joe Biden, which attracted over $4 billion in industry bids.
The decision has drawn criticism from Oceantic Network, which accused the administration of undermining clean energy progress. The group warned that removing offshore wind capacity from the pipeline could strain energy supply at a time of rising prices, despite ongoing contributions from existing projects.
Two projects tied to the New York lease—Attentive Energy One and Attentive Energy Two—had already faced setbacks, with one stalled after New York declined a contract award and the other proceeding under a New Jersey agreement earlier in 2024.
The development highlights a broader pivot in US energy policy, prioritizing conventional energy sources over renewables amid concerns over cost, reliability, and energy security.
By Reuters
