BP and TotalEnergies Step Up Their Bet on U.S. Oil and Gas

By Ion Jauregui – ActivTrades

European energy giants continue to strengthen their footprint in the United States. BP (LON: BP) and TotalEnergies (EPA: TTEF) have announced new strategic moves that consolidate their positions in oil and gas within the world’s largest consumer market.

BP recently approved a $5 billion megaproject in the Gulf of Mexico, featuring a floating platform with a production capacity of 80,000 barrels of oil equivalent per day (boed). The British major is targeting 1 million boed in the U.S. by 2030, a milestone that would decisively reinforce its production base in North America, one of the most competitive and energy-hungry markets worldwide.

In parallel, TotalEnergies acquired a 49% stake in Continental Resources’ gas fields in Oklahoma, adding 26,000 boed to its portfolio. This deal strengthens the French company’s leadership in the liquefied natural gas (LNG) market, a key resource for the energy transition and global supply security, particularly in Europe and Asia.

Technical Analysis – BP (Ticker AT: BP.UK)

BP shares are trading around 430.20 pence today. After forming a triple top in April 2024 and undergoing a sharp correction, the stock is moving within a lateral range between 319.20 and 457.95 pence.

• Resistance: located at the upper bound of the range, at 457.95 pence.
  
• Support: the 400 pence area, and in extension, the 319.20 pence lows. The POC is positioned above the 100-day average and just below the 50-day, acting as secondary support at 422 pence.
  
• Indicators: RSI remains in neutral territory following the correction, while the MACD suggests a timid recovery to the upside.
  

Should BP break above 458 pence, the next technical target would be 503.8 pence, a level aligned with the previous 2024 bearish crossover highs. Failure to surpass resistance could see the stock retrace towards 400 pence, or even retest the range lows. Momentum will largely depend on production and earnings expectations stemming from the new U.S. projects.

Strategic Outlook

The moves by BP and TotalEnergies highlight the strategy of Europe’s leading oil and gas players to combine offshore and onshore production in the U.S., diversifying their portfolios and capturing growth opportunities in hydrocarbons and LNG.

In the short term, these investments could boost U.S. gas supply, applying downward pressure on local prices, while enhancing the competitiveness of LNG exports to high-demand markets such as Europe and Asia.


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