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World has ‘never experienced’ refining margins like this

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Watch CNBC's full interview with TotalEnergies CEO Patrick Pouyanné
Watch CNBC's full interview with TotalEnergies CEO Patrick Pouyanné

Roughly 15% of TotalEnergies’ production is offline, as the war with Iran nears the one-month mark, but surging oil prices have more than made up for the lost barrels, chairman and CEO Patrick Pouyanné told CNBC in an exclusive interview.

With Brent crude trading solidly above $100 a barrel, much of the attention has focused on oil prices, but Pouyanné said the crisis is having a much larger impact on product prices.

“The Brent market is ok, but the products market, which is the one which impacts customers … is much higher than Brent,” he told CNBC at S&P Global’s CERAWeek energy conference in Houston. He added, the world has “never experienced” refining margins from products including Asian jet fuel at current levels. In addition to petroleum products, about 30% of global fertilizer moves through the Strait of Hormuz, jeopardizing the spring planting season.

TotalEnergies is a major player in the global LNG market, including the largest exporter of U.S. LNG. The CEO said the company can still fulfill customer orders in Europe and Asia thanks to its diversified global portfolio. 

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Last week, QatarEnergy said its Ras Laffan plant suffered “extensive damage” following Iranian drone attacks, effectively taking 20% of global LNG supply offline. The shutdown has sent natural gas prices in Europe and Asia surging.

Pouyanné expects prices could move substantially higher if the war drags on through the summer, since Asian demand rises over the summer just as Europe looks to refill storage. European natural gas traded around $18 per million British thermal units Tuesday, but Pouyanné said prices could hit $40/MMBtu over the summer if the conflict continues.

TotalEnergies is a major investor in U.S. energy. On Monday, it struck a deal with the Trump administration to abandon its offshore wind projects in return for $1 billion. The company agreed to reinvest the money into U.S. oil and gas projects instead.

The federal government is key for offshore wind permitting, and the current administration has been a vocal critic of the industry. Pouyanné said he did not want to litigate with the administration over its offshore wind leases – acquired under former President Joe Biden – and so approached the administration with a deal. He added that in the U.S. offshore wind no longer makes sense given cheaper alternatives.

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“In the specific situation of the U.S., where you have a lot of land, you have a lot of gas, you have a lot of coal, you have a lot of land to build onshore solar, onshore wind, batteries, we don’t need to have offshore wind,” he said. “It’s a marginal technology, which is not affordable.”

“I prefer to allocate my capital to technologies which are more efficient, which give affordable electricity to customers,” he said.

As part of its expanding U.S. portfolio, TotalEnergies recently inked a 15-year agreement with Google to supply renewable power for data centers. Pouyanné said other hyperscalers – including Amazon and Microsoft – are now speaking to TotalEnergies directly. 

“These hyperscalers have understood that an energy company – like TotalEnergies –  because we have also capacity, not only to build, to invest, to have land, to trade, we were quite a good partner for them,” he said.

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Crypto World

Wall Street Will Eventually Submit To The Rules Of DeFi

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Wall Street Will Eventually Submit To The Rules Of DeFi

Opinion by: Mitchell Amador, founder and CEO of Immunefi

There’s an argument that regulation will split decentralized finance (DeFi) into two separate silos: one regulated and compliant and the other completely open and accessible by anyone, including anonymous participants.

This argument is outdated.

Regulatory pressure in 2026 will reshape DeFi into a network of interoperable, interlinked ecosystems with distinct risk, compliance and access profiles.

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Some tiers will become more compliant and institution-friendly, while others will remain open, permissionless and driven by onchain leverage and market experimentation.

This evolution won’t drag DeFi toward TradFi. Rather, it will bring TradFi into DeFi’s orbit.

DeFi already operates in multiple lanes

DeFi has never functioned as a single monolith; it operates across several concurrent compliance tiers.

The first lane is permissionless DeFi, where anyone can deploy a contract, supply liquidity and use leverage. This is the engine of innovation, where price discovery and stress testing happen in public, as does failure. Permissionless pools have no Know Your Customer (KYC), allow pseudonymous users and exist because global markets can move faster than regulated institutions.

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The next tier consists of protocols with built-in safeguards, like liquidation rules, governance frameworks and oracle protections, but no identity requirements. These serve people who want liquidity and yield with risk management.

Finally, there is the newer, heavily controlled lane, where KYC checks, geofencing and compliance filters are applied at the access-point level.

The same underlying smart contracts can still be reached, just through different gates.

Liquidity trumps isolation

Full isolation of compliant DeFi is unlikely. Capital seeks liquidity, and liquidity seeks composability. That means the regulated lanes will run through permissionless infrastructure.

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Institutions entering digital assets will want access to the scale of liquidity that only onchain markets can provide — 24/7 global access, near-instant settlement and depth that traditional venues cannot match. The passage of the GENIUS Act, which bans yield-bearing stablecoins, has already pushed institutional capital toward DeFi protocols in search of returns.

If the liquidity accessed is compelling enough, institutions will tolerate complexity and innovation risks. Regulation won’t eliminate this incentive.

Security innovation starts in the arena

Institutional and compliant participants care deeply about security, yet the center of gravity for security innovation will sit inside permissionless DeFi.

That may sound counterintuitive, given that over $3.1 billion was lost to hacks and exploits during the first half of 2025 alone.

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Related: For Wall Street’s most sophisticated trading firms, the next alpha is onchain

Adversarial conditions are precisely where robust defenses are forged. Bug bounty programs, real-time monitoring tools and AI-driven threat detection were all born in the permissionless environment and stress-tested against live exploits before any compliance framework adopted them.

This pattern will accelerate. New security models that range from automated vulnerability scanning to onchain firewalling will continue to emerge in open DeFi and will then be standardized and adopted by the institutional side once they prove effective.

Regulation will cement DeFi’s central role

Regulation will certainly not fracture DeFi. What we will see instead is how decentralized finance will cement its position at the center of global finance.

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The future, to be sure, is not compliant DeFi versus permissionless DeFi, because DeFi has the ability to be interoperable. It’s a network where open markets generate liquidity and innovation, and regulated players selectively plug in. That’s why we will see regulatory pressures mold the ecosystem into interconnected tiers, with some gravitating toward greater compliance and others toward the open marketplace, all of them linked by the composability that makes onchain finance uniquely powerful.

That dynamic will inevitably draw TradFi closer to DeFi as institutions seek out the far greater liquidity, speed and efficiency of decentralized markets.

Opinion by: Mitchell Amador, founder and CEO of Immunefi.