France Should Explore for Shale Gas

GDF Suez CEO Gerard Mestrallet said France should evaluate the extent of its shale gas reserves before deciding whether to exploit them.

“Some people are saying that we should not even give ourselves the right to know,” whether France has reserves of the unconventional gas, Mestrallet said on BFM radio. “We want to know. It’s in the country’s interest to know.”

The government should then decide whether to allow development of the reserves and leave companies to decide whether to proceed, Mestrallet said.

GDF Suez is in talks with Schuepbach Energy LLC on taking a stake in two permits it holds in southern France to explore for the shale gas.

The French government last month announced a drilling moratorium for shale oil and gas exploration projects until at least mid-April when the first conclusions of a report on the economic, social and environmental implications will be published.

“The first question is whether this gas exists in France,” Mestrallet said later at a press conference. “The next question is whether we can develop it while protecting the environment.”

French environmental groups have said drilling risks contaminating the water supply because of the chemicals used in the hydraulic fracturing process employed in shale gas exploration.

“We don’t even know whether there is shale gas in France,” Total Chief Executive Officer Christophe de Margerie last month. “When we look at a map of the world, France isn’t considered the most attractive country for it.”

“Imagine if we found very large amounts of gas. France should then ask itself some questions,” Mestrallet said.

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Source: Bloomberg