Stock Markets March 12, 2026

TotalEnergies Reports 15% Drop in Oil and Gas Output as Middle East Fields Close

French major says shut UAE offshore sites cut production, while higher prices and other supplies should offset the loss

By Caleb Monroe
TotalEnergies Reports 15% Drop in Oil and Gas Output as Middle East Fields Close

TotalEnergies on its investor site said it has lost 15% of its oil and gas production after fields across the Middle East were shut amid the U.S.-Israel conflict with Iran. The company estimates that the outage represents roughly 10% of its upstream cash flow, but said an $8 per barrel price rise tied to the crisis and additional production coming online elsewhere would more than offset the lost volumes this year. TotalEnergies also reported its UAE offshore production is shut and that operations at its SATORP refinery in Saudi Arabia remain normal.

Key Points

  • TotalEnergies reported a 15% reduction in its oil and gas output following field shutdowns linked to the U.S.-Israel conflict with Iran - impacting operations in the UAE.
  • The lost production represents approximately 10% of the company’s upstream cash flow.
  • An $8 per barrel rise in oil prices tied to the conflict, combined with additional production coming online elsewhere, is expected by the company to more than offset the output loss this year; SATORP refinery operations in Saudi Arabia are reported as normal.

TotalEnergies said on its investor website that the ongoing U.S.-Israel war with Iran has forced a shutdown of fields across the Middle East and resulted in a 15% reduction in its oil and gas output. The French energy company quantified the disruption as representing about 10% of its upstream cash flow.

The company's post was the first confirmation from a major operator that outages in the United Arab Emirates are widespread as a result of the crisis. Qatar and Iraq had already announced production cuts; the UAE had not issued official data prior to TotalEnergies' statement.

TotalEnergies specified that its offshore production in the UAE is shut. The company noted that roughly half of the UAE's oil is produced from offshore fields, underlining the scale of the disruption where it is active.

On the revenue side, TotalEnergies said that an $8 per barrel increase in oil prices linked to the conflict would generate incremental income that more than offsets the impact of the lost volumes for the company this year, particularly as it plans to bring additional production online in other locations.

The firm added that operations at its SATORP refinery in Saudi Arabia are continuing as normal.


Market context and operational notes

TotalEnergies framed the production shortfall in cash-flow terms rather than as a simple volume loss, indicating the company is weighing price effects along with output disruptions. The statement simultaneously served as the first major corporate confirmation of extensive shutdowns in the UAE tied to the crisis, a detail that had not been officially disclosed by UAE authorities.

Disclosure

No additional disclosure was provided alongside the company update on its investor site.

Risks

  • Operational risk in the Middle East - widespread shutdowns, including offshore UAE production, are disrupting oil and gas output and could continue to affect regional supply.
  • Cash-flow sensitivity to geopolitical events - the company attributes about 10% of upstream cash flow to the lost output, demonstrating how conflict-driven outages can alter near-term financials.
  • Uncertainty over official reporting - the UAE had not released official information on outages prior to TotalEnergies’ statement, introducing limits on independently verifiable data about the full extent of disruptions.

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