TotalEnergies abandons U.S. offshore wind to double down on oil and gas

TotalEnergies has struck a deal with the U.S. government to exit its offshore wind operations in the country. The agreement, signed on 23 March 2026, will see the company withdraw from all existing leases while redirecting funds into oil and gas projects. Energy markets reacted swiftly, with crude oil and natural gas futures both falling sharply in the same session.

Under the settlement, TotalEnergies will surrender two key offshore wind leases: Carolina Long Bay and New York Bight. The U.S. Department of the Interior will then cancel these leases once the company confirms its investment in approved energy ventures.

The deal requires TotalEnergies to first invest $928 million—the original amount paid for the wind leasing rights—into U.S. oil, gas, and LNG projects. After verification, the federal government will refund the full sum. The company's primary focus will be the Rio Grande LNG facility in Texas and Gulf of America petroleum operations. Financial markets responded negatively to the news. TotalEnergies shares dipped by 1.03% after the announcement. Meanwhile, crude oil futures (CL) plummeted by 9.51%, and natural gas futures (NG) fell by 5.12% during the same trading period. The agreement also marks TotalEnergies' complete exit from future U.S. offshore wind development. Instead, the company will channel the refunded funds into expanding its fossil fuel portfolio starting in 2026.

The settlement allows TotalEnergies to shift its U.S. investments entirely toward oil, gas, and LNG. The government's refund of $928 million will follow once the company confirms its spending in approved projects. With the cancellation of its wind leases, the firm's energy strategy in the U.S. will now focus solely on hydrocarbons.