BP and Total Expand U.S. Energy Investments with Major Projects

European energy giants BP (NYSE: BP) and TotalEnergies (NYSE: TTE) have recently taken significant steps to deepen their energy operations in the United States, reflecting a notable shift in their strategic focus toward expanding oil and gas production in the region. These moves underline their growing reliance on U.S. energy markets as they adjust to changing priorities within the global energy landscape.

BP has approved a $5 billion investment in the Tiber-Guadalupe project, an offshore oil field located in the Gulf of Mexico. The development will feature a floating production platform designed to produce 80,000 barrels of oil equivalent per day (boed) starting in 2030. This marks BP’s seventh production facility in the Gulf and a key pillar in its ambition to increase U.S. output to just over 1 million boed by the end of the decade. This constitutes nearly half of BP’s global production target of 2.3 to 2.5 million boed expected around that time. The project is expected to tap into approximately 350 million barrels of recoverable oil resources, according to BP’s estimates. The Tiber-Guadalupe initiative is also seen as a technological step forward because it will operate under high-pressure conditions not commonly used in previous projects, potentially lowering production costs compared to nearby ventures. BP is also exploring opportunities to sell minority stakes in this project along with another Gulf of Mexico asset, Kaskida, as part of its financial strategy to optimize capital allocation. 

On the other side, TotalEnergies has broadened its foothold in the U.S. market by acquiring a 49% interest in onshore gas fields operated by Continental Resources in Oklahoma. This acquisition, whose financial terms were not publicly disclosed, is expected to produce about 150 million standard cubic feet of gas per day by 2030, equivalent to around 26,000 boed. The move aims to secure low-cost upstream gas supplies for TotalEnergies, which is the largest buyer of U.S. liquefied natural gas (LNG), importing approximately 10 million metric tons annually. Despite its substantial LNG purchases, TotalEnergies’ domestic gas production in the U.S. remains small relative to its other regions of operation, accounting for only about 3.8% of its total output. The company’s broader strategy envisions growing its U.S. upstream production to better align with its LNG procurement. 

These developments represent a notable recalibration for BP and TotalEnergies, both of which have shifted some focus away from their previous commitments to renewable projects toward expanding fossil fuel extraction. BP’s strategic reset earlier this year involved reducing renewable energy spending and redirecting efforts and capital toward oil and gas production, a pivot driven in part to bolster investor confidence and respond to market demand. BP now plans to bring online between 8 and 10 major upstream projects globally by around 2030, with the Tiber-Guadalupe project serving as a flagship initiative in its U.S. expansion plans. The company’s production target for 2030 exceeds earlier ambitions, highlighting a more aggressive stance on fossil fuels that runs counter to broader energy transition narratives. 

These moves also align with U.S. government priorities under President Trump, who has emphasized tapping national hydrocarbon resources to enhance energy independence and economic growth. By leveraging large-scale projects such as those in the Gulf of Mexico and onshore America, BP and TotalEnergies are positioning themselves as central players in fulfilling these goals. BP alone spent over $6 billion on U.S. investments in 2024, accounting for around 40% of its global capital expenditures and supporting nearly one-third of its global workforce based in the country. 

While renewable energy capacity in the U.S. continues to grow robustly, particularly through wind and solar additions, these investments by BP and TotalEnergies underscore the continuing significance of oil and gas extraction in the country’s energy mix. BP’s offshore project and TotalEnergies’ gas field stake illustrate a pragmatic approach to balancing energy supply, addressing both market realities and policy environments. 

This latest push represents a major step in the evolving energy landscape, where global energy companies are recalibrating their portfolios and market strategies. BP and Total’s expanded projects in the U.S. stand as clear indicators of the sector’s current dynamics, shaped by economic factors, geopolitical influences, and ongoing debates over energy transition and climate strategy.

The United States, with its large-scale resource base and supportive policy outlook, remains a crucial arena where these changes are taking shape, highlighting the importance of continued investment and operational developments from some of the world’s largest energy producers.