A major shift in U.S. energy policy is taking shape as TotalEnergies pulls back from offshore wind development and redirects nearly $1 billion into oil and gas projects.
The French energy company confirmed it will abandon plans tied to offshore wind leases off the coasts of New York and the Carolinas. Instead, it will invest roughly $928 million in fossil fuel operations, including liquefied natural gas infrastructure in Texas and conventional oil and gas production in the Gulf and shale regions.
The move follows an agreement with the U.S. government, which will reimburse TotalEnergies for the leases it previously acquired. Those leases, secured in 2022 during a major federal auction, were part of a broader push to expand offshore wind capacity.
Under the new arrangement, the federal government will terminate those agreements, and the company has pledged not to pursue new offshore wind projects in the United States.
The decision aligns with a broader shift under the current administration, which has prioritized domestic fossil fuel production over renewable energy expansion. Officials have argued that offshore wind projects are costly and less reliable compared to traditional energy sources.
Interior Secretary Doug Burgum described the agreement as a step toward ensuring affordable and dependable energy supply, criticizing offshore wind as an expensive and subsidy-driven model.
The announcement drew criticism from clean energy advocates. Industry groups warned that pulling projects from the pipeline could limit future electricity supply at a time when demand and prices are rising.
Sam Salustro of the Oceantic Network said the decision could remove reliable energy capacity from development while relying on taxpayer funds to unwind existing projects.
The financial stakes are significant. TotalEnergies paid hundreds of millions of dollars for offshore leases, including a $795 million bid for a site in the New York Bight. Some planned projects tied to those leases had already faced delays after state-level contract decisions stalled development.
Company CEO Patrick Pouyanne said offshore wind has not proven to be a cost-effective solution for electricity generation in the U.S., reinforcing the company’s pivot toward more traditional energy investments.
The deal was announced during the CERAWeek energy conference in Houston, a major gathering for global energy leaders.
The shift highlights a broader tension in U.S. energy policy — balancing investment in renewable sources with efforts to expand domestic oil and gas production. As companies and policymakers adjust strategies, the long-term impact on energy markets and infrastructure remains uncertain.