Trading and Shipping Operations
Every day, billions of companies and individuals use oil and gas to commute, work, heat homes and offices and perform many other activities. We buy and sell this oil and gas around the world. Our teams work to maximize the value of our products, secure supply to our refineries and transport energy to consumer hubs, all while managing the related financial and logistical risks. We are active in 120 countries where we deal with all aspects of oil and gas trading, including physical trading, derivatives and shipping.
AN INTEGRATED ENERGY OPERATOR WITH A GLOBAL NETWORK
Marketing oil and gas all over the world at the right price means managing two important variables:
- Financial markets and price risks linked to market volatility, which depend on a number of economic, geopolitical and even climate-related factors.
- The organization of shipping from production areas to consumer hubs worldwide under optimal safety conditions and in a timely, cost-effective way.
To rise to these challenges, our trading & shipping teams around the world work in close collaboration with Total’s Upstream and Downstream business segments, forming a one-stop shop on oil and gas markets. This optimizes transactions and means that we are equipped to offer tailored solutions to a wide range of players, from producers, transporters and refiners to financial institutions and industrial firms.
We trade with an extensive global network of partners every day, affording us a highly diversified range of resources and supply sources to complement our production volumes. This maximizes the chances of selling both our own and our partner producers’ production while securing supply flows to our refineries and our distribution system.
TRADING: MAXIMIZING THE VALUE OF OUR OWN AND OUR CUSTOMERS’ ASSETS
Every day, our traders deal in oil and gas markets. Their goal is to maximize the value of our production, supply our refineries under the best market conditions and import and export products to match supply to demand in local markets. In addition, they have the crucial responsibility of managing risks, in particular to limit our exposure to sometimes extreme price fluctuations.
Thanks to our expertise and experience in oil markets, we have developed monitoring and decision-support tools at the cutting-edge of trading. Our teams enjoy a global view of real-time flows and segment information, around the clock. As a result, we can respond to developments with the agility needed to maximize the value of our own assets and those of our customers.
“We Are Pioneers in Trading Liquefied Natural Gas (LNG)”
Long controlled by State-owned companies, the European gas industry was largely privatized during the 2000s. This development paved the way for the creation of a free market for LNG trading. Total was one of the first companies to have seized the opportunities presented by this emerging market, with our first transactions taking place in 2003. Today, we are among the top three companies in the market.
In line with our strategy, we work to anticipate the launch of new liquefaction projects and to maximize the value of our LNG portfolio in every market.
LNG trading relies on a very broad range of skills, including arbitrage, one of our longstanding areas of expertise. The purpose of arbitrage is to redirect shipments in response to opportunities created by local demand and prices while managing shipping, price, currency and interest rate risk.