TotalEnergies set to lose 15 percent of global production due to conflict
AI Overview
TotalEnergies has officially confirmed a
15% loss in its global oil and gas production as of March 2026, primarily due to the ongoing conflict between the United States, Israel, and Iran. The French energy major has been forced to shut down operations at several major fields across the Middle East, including those in
Qatar, Iraq, and offshore United Arab Emirates (UAE).
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Production Impacts by Region
The company's announcement on its investor website marks the first official acknowledgment of widespread output disruptions in the UAE specifically.
- United Arab Emirates: Offshore production is currently entirely halted. This is significant as offshore fields account for approximately half of the UAE's total national oil output.
- Qatar: Liquefied natural gas (LNG) production has been impacted, with losses limited to approximately two million tonnes for TotalEnergies.
- Iraq: Operations have been shut down or are in the process of being wound down due to the crisis.
- Saudi Arabia: In contrast to the field shutdowns, operations at the SATORP refinery in Saudi Arabia are reportedly continuing as normal.
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Financial and Market Consequences
While the 15% drop in production represents about
10% of TotalEnergies' upstream cash flow, the company expects to mitigate the financial blow through rising energy prices.
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- Price Offset: Brent crude prices, which were around $60 per barrel at the start of 2026, surged to over $100 per barrel following the start of the conflict on February 28. TotalEnergies stated that an $8 per barrel increase is sufficient to offset the expected 2026 cash flow losses from the affected Middle Eastern assets.
- Alternative Production: The company is attempting to ramp up additional output in other regions to compensate for the Middle East losses.
- Operational Shifts: Before these shutdowns, TotalEnergies had projected a 3% to 5% increase in overall production for 2026, supported by projects in Brazil, the U.S., and Africa.
- Consumer Impact: In response to market volatility, TotalEnergies has implemented fuel price caps in its French network, limiting gasoline to 1.99 euros per liter and diesel to 2.09 euros through the end of March 2026. $$$$$$$$$
Maybe what Cs said about flights being grounded in the future is connected to the coming oil prices. Wait and see.
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The pilots' union Vereinigung Cockpit has called on the approximately 5.000 pilots of Lufthansa, Lufthansa Cargo, and its subsidiary Lufthansa CityLine to participate in a two-day strike. [The text abruptly ends here.]
aviation.direct
Friday, March 13, 2026, at 23:59.
The pilots' union Vereinigung Cockpit has called on the approximately 5.000 pilots of Lufthansa, Lufthansa Cargo, and its subsidiary Lufthansa CityLine to participate in a two-day strike. The industrial action will begin on Thursday, March 12, 2026, at 00:01 and end on
The escalation stems from the ongoing wage dispute over the company pension scheme, which has been simmering for months. Only flights to the Middle East, which are to be operated for geopolitical security reasons, are exempt from the strike action. The airline expects to cancel more than half of its planned flight schedule, affecting tens of thousands of passengers at its hubs in Frankfurt and Munich.
Industry analyses and recent reports make it clear that this strike is significantly impacting the group's operational stability. A warning strike in February already resulted in the cancellation of over 800 flights. Lufthansa is attempting to maintain a skeleton service through a special flight schedule and the use of partner airlines as well as non-striking subsidiaries such as Lufthansa City Airlines. Passengers have been advised to update their contact details to be informed of short-notice changes via app or email. For domestic travel, the company is increasingly offering the option to convert flight tickets into rail vouchers to utilize capacity on Deutsche Bahn's rail network.
Regarding compensation claims, legal experts point to the applicable EU Air Passenger Rights Regulation (EC 261/2004). Since a strike by its own staff does not constitute an "extraordinary circumstance" according to the case law of the European Court of Justice, affected passengers are entitled to compensation of up to €600 in the event of cancellations or delays of more than three hours. In addition, the airline is obligated to provide care services such as meals and drinks, and, if necessary, hotel accommodation, after a two-hour wait. Should Lufthansa fail to offer timely alternative transportation within three hours, passengers can, under certain conditions, book alternatives themselves and claim the costs later.
The economic consequences for the Lufthansa Group are significant, as in addition to direct revenue losses, substantial compensation payments are also looming. The union, however, emphasizes that the demands for a future-proof pension scheme are essential given the high demands placed on cockpit pilots. While the positions of the negotiating parties remain entrenched, the focus in the coming days will be on managing passenger volume. The airport operators in Frankfurt and Munich are preparing for overcrowded terminals and have mobilized additional customer service staff to mitigate the impact of the strike action on the ground.