Oil-producing countries and oil companies are well aware that a sustainable approach is needed to meet global energy demand, a reality that Total is tackling with success. In 2006, as in 2005, the Group managed to increase potential hydrocarbon reserves by around three billion barrels of oil equivalent. This achievement was obviously due to our exploration activities, but also to some ambitious heavy oil and liquefied natural gas projects. Total’s gas adventure goes way back. Already in 1964, the Group was a partner in the world’s first, liquefaction plant in Arzew, Algeria. Now accounting for over a third of the Group’s hydrocarbon production and reserves, gas has an important part to play in our efforts to create an environmentally friendly energy future.
Daring and innovation: two values that have steered our action in the past and put us where we are today end to end of the gas chain.

The consistency of our business portfolio is due to a combination of our strong presence in major producing areas, such as the Middle East, and our downstream operations on the three leading gas consumer markets, namely North America, Europe and Asia. Added to this is our thorough understanding of these markets, which we strive to turn to good account in our ongoing dialogue with producing countries. The Yemen LNG Project is evidence of this. Our ability to take advantage of the global market turnaround and the excellent relations established with the Yemeni authorities over the years have paid off. Perseverance, definitely, and more daring. Australia is a new land of opportunity for Total with the already successful Ichthys LNG Project. Our ultimate goal is to increase Total’s liquefied natural gas production by an average 13% a year over the 2006-2010 period.

Daring and innovation again steer Total’s approach to our diminishing oil resources, with the idea of building bridges between the different energies. The Group is already making preparations for this and investing in R&D to boost the return on the gas-to-liquids chemical conversion process and the profitability of the X-to-liquids (XTL) sectors. In the area of climate change, Total’s demonstration pilot of a full carbon capture and storage chain is due to open at its Lacq site in France in 2008.
In this edition of Énergies, I invite you to explore the new gas environment. A landscape marked by changes in the European market and the liquefied natural gas market. Markets where Total is committed to being a partner you can count on – today and tomorrow.

Christophe de Margerie,
Chief Executive Officer, Total