US to pay TotalEnergies $1 billion to stop developing offshore wind in US

As part of the deal, TotalEnergies is also renouncing any further attempt to develop offshore wind in the US.

The rhetoric that accompanied the announcement reads as if it were crafted by people with only a tenuous grip on reality. The world is currently experiencing price shocks for both oil and natural gas brought about by the US’s attack on Iran. While the US produces an excess of oil and natural gas, the prices of those fuels are set in part by international trade, meaning US consumers are facing rising costs. Yet the deal would see TotalEnergies develop an additional liquified natural gas export terminal, increasing US consumers’ exposure to future price shocks.

The announcement claims, however, that the deal will be “Lowering costs for American families,” and Interior Secretary Doug Burgum said, “We welcome TotalEnergies’ commitment to developing projects that produce dependable, affordable power to lower Americans’ monthly bills.” The announcement also complains about the subsidies received by offshore wind while being focused on the fact that companies paid the government for the right to develop it.