Rich oil reserves locked in rock formations outside Paris are about to be tapped in a new French-American venture that highlights Europe’s quest for new, diverse energy sources.
In a first for France, two companies have teamed up to produce shale oil from the Paris basin through a difficult and costly extraction process that involves blasting the rock with water and chemicals.
Toreador Resources and Hess, the leading producer of shale oil in the US, signed a deal last week for six wells, with the first one planned for later this year.
It marks the first time that France has opted for this form of unconventional oil exploration and the project will be submitted to President Nicolas Sarkozy’s government for approval.
“We know that the oil is there. The question is whether we will be successful in producing it,” Toreador vice president Julien Balkany said.
His company estimates potential reserves in the Paris basin at 65 billion barrels, but only a tiny portion of that can be extracted — between 0.5 and 1 percent.
Hess paid US$15 million to become co-holder of Toreador’s exploration permits and will invest up to US$120 million over the next five years in the Paris basin project.
The company, headquartered in New York, is already pumping 13,000 barrels from the Bakken shale play in the US state of North Dakota, bordering Canada.
“The technology we use to produce oil in US unconventional plays will have a direct application to the Paris basin,” said Greg Hill, president of exploration and production at Hess.
Contrary to conventional exploration, shale oil requires horizontal wells to crack open the rock over 4km or 5km at depths of 2,000m to 3,000m.
France has up to now shied away from such unconventional exploration, mainly because of the cost, but with oil prices rising again to well above US$70, the temptation to drill is strong.
“With [current prices] ... the viability of the project is guaranteed,” said Charles Lamiraux, head of oil exploration at the French energy ministry.
A first well will be drilled this year, with three possible areas — Chateau-Thierry, Leudon-en-Brie or Nogent-sur-Seine, all located a few dozen kilometers away from Paris.
While the world’s biggest oil shale deposits are in the US, Russia leads the list of producers in Europe and deposits have been found in a dozen countries.
There has been a recent push in Europe to tap into shale gas as European governments grow anxious over their increasing energy dependence on Russia.
France, which relies heavily on nuclear power to meet its energy needs, could cover 5 percent of its oil requirements through the new energy source, Lamiraux said.
It currently only produces 1 percent of its oil consumption needs, through production in the Paris basin and the Aquitaine basin in the southwest.
More than 800 exploration wells have already been drilled in the Paris basin, but oil production has dropped from 40,000 barrels per day in the 1980s to its current level of 10,000 barrels per day.
STILL COMMITTED: The US opposes any forced change to the ‘status quo’ in the Strait, but also does not seek conflict, US Secretary of State Marco Rubio said US President Donald Trump’s administration released US$5.3 billion in previously frozen foreign aid, including US$870 million in security exemptions for programs in Taiwan, a list of exemptions reviewed by Reuters showed. Trump ordered a 90-day pause on foreign aid shortly after taking office on Jan. 20, halting funding for everything from programs that fight starvation and deadly diseases to providing shelters for millions of displaced people across the globe. US Secretary of State Marco Rubio, who has said that all foreign assistance must align with Trump’s “America First” priorities, issued waivers late last month on military aid to Israel and Egypt, the
‘UNITED FRONT’ FRONTS: Barring contact with Huaqiao and Jinan universities is needed to stop China targeting Taiwanese students, the education minister said Taiwan has blacklisted two Chinese universities from conducting academic exchange programs in the nation after reports that the institutes are arms of Beijing’s United Front Work Department, Minister of Education Cheng Ying-yao (鄭英耀) said in an exclusive interview with the Chinese-language Liberty Times (the Taipei Times’ sister paper) published yesterday. China’s Huaqiao University in Xiamen and Quanzhou, as well as Jinan University in Guangzhou, which have 600 and 1,500 Taiwanese on their rolls respectively, are under direct control of the Chinese government’s political warfare branch, Cheng said, citing reports by national security officials. A comprehensive ban on Taiwanese institutions collaborating or
France’s nuclear-powered aircraft carrier and accompanying warships were in the Philippines yesterday after holding combat drills with Philippine forces in the disputed South China Sea in a show of firepower that would likely antagonize China. The Charles de Gaulle on Friday docked at Subic Bay, a former US naval base northwest of Manila, for a break after more than two months of deployment in the Indo-Pacific region. The French carrier engaged with security allies for contingency readiness and to promote regional security, including with Philippine forces, navy ships and fighter jets. They held anti-submarine warfare drills and aerial combat training on Friday in
COMBAT READINESS: The military is reviewing weaponry, personnel resources, and mobilization and recovery forces to adjust defense strategies, the defense minister said The military has released a photograph of Minister of National Defense Wellington Koo (顧立雄) appearing to sit beside a US general during the annual Han Kuang military exercises on Friday last week in a historic first. In the photo, Koo, who was presiding over the drills with high-level officers, appears to be sitting next to US Marine Corps Major General Jay Bargeron, the director of strategic planning and policy of the US Indo-Pacific Command, although only Bargeron’s name tag is visible in the seat as “J5 Maj General.” It is the first time the military has released a photo of an active
RSS