France Oil and Gas Report Q1 2012
Includes 3 FREE quarterly updates
BMI View: Subdued oil demand growth means the prospects for refiners and fuels distributors – already faced with strong competition and the need to maintain investment for environmental reasons – are not good. The gas market has greater potential, both in terms of rising domestic demand and the scope to re-sell surplus LNG through regional pipeline links. A mature market means there is a risk leading industry players which are seeking higher growth and wider margins may seek to divest assets.
The main trends and developments we highlight in the French Oil and Gas sector are:
At time of writing, we assume an OPEC basket oil price for 2011 of US$101.90 per barrel (bbl), falling to US$99.40/bbl in 2012. Global GDP in 2011 is forecast at 3.2%, down from 4.3% in 2010, reflecting slowing growth in China, a faltering recovery in the US and a worsening eurozone debt crisis. For 2012, growth is put at 3.6%.
BMI View: Subdued oil demand growth means the prospects for refiners and fuels distributors – already faced with strong competition and the need to maintain investment for environmental reasons – are not good. The gas market has greater potential, both in terms of rising domestic demand and the scope to re-sell surplus LNG through regional pipeline links. A mature market means there is a risk leading industry players which are seeking higher growth and wider margins may seek to divest assets.
The main trends and developments we highlight in the French Oil and Gas sector are:
- France-focused explorer Toreador Resources and US independent Hess won approval from the French energy ministry in June 2010 for an oil shale joint venture (JV) in the Paris Basin. However, environmental concerns over hydraulic fracturing (fraccing), the controversial drilling method used to tap reserves locked in tight shale rock formations, have scuttled these hopes. Hydraulic fracturing was banned in France in mid-2011and this policy seems unlikely to be reversed in the immediate future.
- Gas demand is expected to rise more quickly than oil demand, with new sources of supply being lined up by GdF Suez, which has signed import agreements with Egypt in addition to those already signed with Russia, Norway, Algeria and the Netherlands. Gas consumption is likely to reach 53.5bn cubic metres (bcm) in 2016. Gas production is negligible, so imports could rise significantly to a high of around 52.9bcm by the end of the forecast period.
- In May 2011, EdF and Total confirmed that they would proceed with the US$2.2bn Nord-Pas-de- Calais Liquefied Natural Gas (LNG) project at Dunkirk, which is expected to add between 10bcm and 13bcm of import capacity when it comes onstream. Furthermore, there are plans to expand capacity at the Montoir-de-Bretagne terminal to 16.5bcm by 2014.
- Thanks to improved energy efficiency and efforts to reduce oil dependency, oil demand is now expected to remain mostly flat over the coming decade. Our assumptions point to oil consumption reaching 1.88mn barrels per day (b/d) by 2016. Crude oil imports are expected to have reached 1.86mn b/d by 2016.
- Crude oil imports will cost an assumed US$66.7bn in 2011, falling to US$63.4bn in 2016. With virtually no domestic gas supply, we anticipate French gas imports of 48.8bcm in 2011, costing US$24.5bn. Combined crude oil and gas imports are expected to cost France an estimated US$87.9bn by 2016.
At time of writing, we assume an OPEC basket oil price for 2011 of US$101.90 per barrel (bbl), falling to US$99.40/bbl in 2012. Global GDP in 2011 is forecast at 3.2%, down from 4.3% in 2010, reflecting slowing growth in China, a faltering recovery in the US and a worsening eurozone debt crisis. For 2012, growth is put at 3.6%.
Contents
BMI Industry ViewSWOT Analysis
France Oil and Gas SWOT
Global Energy Market Outlook
Table: Global Oil Consumption, 000b/d, 2009-2016
Table: Global Oil Production, 000b/d, 2009-2016
Regional Energy Market Outlook
Oil Demand
Table: Developed Europe Oil Consumption, 2009-2016 (000b/d)
Oil Supply
Table: Developed Europe Oil Production (000b/d)
Oil: Downstream
Table: Developed Europe Refinery Capacity, 2009-2016 (000b/d)
Gas Demand
Table: Developed Europe Gas Consumption, 2009-2016 (bcm)
Gas Supply
Table: Developed Europe Gas Production, 2009-2016 (bcm)
Liquefied Natural Gas
Table: Developed Europe LNG Gas Imports (Exports), 2009-2016 (bcm)
France Energy Market Overview
Industry Forecast Scenario
Table: France Oil & Gas – Historical Data And Forecasts
Oil and Gas Reserves
Oil Supply And Demand
Gas Supply And Demand
LNG
Refining and Oil Products Trade
Revenues/Import Costs
Key Risks To BMI’s Forecast Scenario
Oil And Gas Infrastructure
Oil Refineries
Table: Refineries In France
Service Stations
Gas Pipelines
LNG Terminals
Table: LNG Terminals In France
Gas Storage
Competitive Landscape
Executive Summary
Table: Key Players – France Oil And Gas Sector
Overview/State Role
Licensing and Regulation
Government Policy
International Energy Relations
Table: Key Upstream Players
Table: Key Downstream Players
Company Monitor
Total
GdF Suez
Royal Dutch Shell
Vermillion Energy – Summary
Toreador Resources – Summary
EDF – Summary
Tethys Oil – Summary
Lundin Petroleum – Summary
Egdon Resources – Summary
Delek Group – Summary
Conoco/Realm – Summary
Appendix: Oil And Gas Long-Term Forecasts
Regional Oil Demand
Table: Developed Europe Oil Consumption (000 b/d)
Regional Oil Supply
Table: Developed Europe Oil Production (000b/d)
Oil: Downstream
Table: Developed Europe Refining Capacity (000b/d)
Regional Gas Demand
Table: Developed Europe Gas Consumption (bcm)
Regional Gas Supply
Table: Developed Europe Gas Production (bcm)
Methodology And Risks To Forecasts
Glossary Of Terms
Oil And Gas Risk/Reward Ratings Methodology
Ratings Overview
Table: BMI’s Oil & Gas Business Environment Ratings – Structure
Indicators
Table: BMI’s Oil & Gas Upstream Ratings – Methodology
Table: BMI’s Oil & Gas Business Environment Downstream Ratings – Methodology
BMI Methodology
How We Generate Our Industry Forecasts
Energy Industry
Cross checks
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