Oil major Total rebrands as TotalEnergies, reflects energy transition aims

London, (Quantum Commodity Intelligence) – French oil major Total has rebranded itself to TotalEnergies as it redirects some of its investments into renewables and weans itself off fossil fuels.

After a near-unanimous vote, the company's shareholders voted for the move, which will see the world's fourth largest non-state owned oil and gas producer change its image.

The company has a target to cut net emissions to zero by the middle of the century.

"Our ambition is to be a world-class player in the energy transition. That is why Total is transforming and becoming TotalEnergies," declared Patrick Pouyanne, chairman and CEO.

The move comes as oil and gas firms are coming under increasing pressure to firm up plans to cut emissions.

On Wednesday, a district court in the Netherlands ruled that Shell had to ramp up its own goals to cut emissions, while on the same day an activist group succeeded in positioning its candidates on the board of directors of Exxon.

Last week, the IEA said that in order to cap an increase in emissions at 1.5C above the industrial age and reach net zero emission by 2050, the world would need to stop investing in new gas and oil developments as of this year.

However, some analysts say that this could have a big impact on oil prices, which are hovering just under $70/b, with further economic recovery-based demand set to push this up despite the prospect of more supply over the next two months from OPEC producers.

"This (net zero paper) points to a complete change of mindset in the sector and a massive decline in investment. This is a risky strategy in our view given that global oil demand is still growing, so it could result in excessive oil price rises in the next few years," Commerzbank said in a report Friday