French Shale Report Favors Assessment Drilling – Update (2)

A preliminary report on the economic issues, social and environmental of shale gas and shale oils in France, is favorable to assessment drilling, but under strict controls.

The report concludes that banning exploration before the reserves are assessed could be detrimental to France’s economy and labor market.

French shale oil and gas fields are potentially some of the most promising in Europe but remain “largely” unknown due to a lack of exploration, and the potential commercial viability of the fields is also unknown because of a lack of tests, the report said.

But “the interest shown…by major oil and gas operators and North American companies which are specialized in extracting shale hydrocarbons, as well as the investments they plan to make, show the scale of the potential,” said the authors of the report, most of them mining engineers working for state agencies.

If the shale oil and gas reserves are found to be important they could allow France to substantially reduce its hydrocarbon imports and its trade deficit, the report also pointed out.

The report commissioned by the Minister for Ecology, Nathalie Kosciusko-Morizet, and her colleague the Minister of Industry and Energy, Eric Besson was initially announced in February, following concerns by environmentalists and local authorities over the process of hydraulic fracking involved in the extraction process.

Extracting techniques still need to be improved, as far as their impact on the environment is concerned, the report said, suggesting a European study of fracking techniques be conducted and that the drilling of a limited number of experimental wells to assess the impact on the environment be conducted under strict supervision of a national scientific committee, with the involvement of experts from BRGM (Bureau de recherches géologiques et minières), Ifpen (Institute of new energies),  Ineris (National institute of the industrial environment and risks) and from abroad.

It also said that before the environmental impact is assessed, no fracking should be conducted at all.

“In two to three years, the acquired experience in our country as well as in Europe and in North America will allow to make rational decisions over the opportunity to extract oil and shale gas in France,” the report concluded.

A final report is expected by June.

France awarded three shale gas exploration licenses in March to Total SA, Schuepbach Energy LLC, and GDF Suez. Toreador Resources Corp. in partnership with Hess and Vermilion Energy Inc. are among companies which have licenses in the Paris Basin to explore for oil trapped in shale rock.  Continental Resources Inc., Jordan Oil & Gas, and Realm Energy International were amongst companies reported to have made application for territory in the area.

Source: Natural Gas for Europe