Total Turns Away from French Shale Permit
The Montelimar permit may have been re-awarded to Total following a legal battle, reviving a debate about shale gas that had once been considered closed. However the French company has said it will not conduct shale operations in the 4,327 km2 area that covers five departments in the southeast of France.
“As oil prices average $30 per barrel, I have other things to do than exploring shale gas resources in places where we are not welcomed”, said Patrick Pouyanne, Total CEO, before a group of companies from the Languedoc-Roussillon-Midi-Pyrénées region on March 11 in the nearby city of Montpellier.
Brent crude may have firmed to about $40/b since, but this doesn't undermine Total's economic argument that shale gas exploration in France is not a priority for it. Moreover the CEO's remarks represent a big win for the environmental activists shortly after a successful anti-fracking rally which drew between 7,000 and 15,000 people to the small town of Barjac on February 28. The protest was organised a month after the administrative court of Cergy-Pontoise ruled in favour of Total.
The oil company may have the law on its side but has no intention of developing its exploration activities in an unfavourable political environment.
“Total conducts shale gas operations in other countries including Argentina. As for France, I will not go against the political will. In fact, I am not convinced that there are actually shale gas resources in this area”, added Pouyanne.
His remarks echo what the new CEO of Total said during a national radio interview on Europe 1 back in January: “I have no desire to force through on this issue nor to slip in through the back door. If the national community does not support shale gas explorations, we will not do it. I am ready to seek a consensus which is needed on this very issue”.
Environment minister Segolene Royal on March 2 reaffirmed her commitment to France's fracking ban which was imposed in 2011, adding that the ban will be incorporated into a Mining Code Reform bill to be presented in June.
Kevin Bonnaud