Energyboardroom.com Releases New ‘Inside Oil and Gas’ France report
28.08.2015 / Energyboardroom
The French oil and gas sector is often perceived as consisting of a single company, Total. In reality however, there is much more to it. Featuring names such as Engie (formerly GDF), Vallourec, Technip, CGG or Bureau Veritas amongst others, France has created an oil and gas industry which includes market leaders in virtually every segment. Geology, services, chemicals, transports and refining are all represented here despite France not having any significant hydrocarbon production of its own. This new report on the French oil and gas industry offers an in-depth look into the industry by talking to the business leaders propelling the sector to new heights.
“Very few people know that France is the world’s second largest oil services industry in terms of exports,” explains Jean Ropers, the former chairman of the French Association of Companies and Professionals in the oil, gas and related industries (GEP-AFTP).
Service providers form the backbone of this distinctive French oil and gas sector. The country’s oil services sector alone generated a turnover of EUR 39 billion (USD 44,5 billion) in 2013, employing a total of 65,000 people.
“The energy sector itself has undergone unprecedented changes in the last fifteen years” – Patrick Pouyanné, CEO of Total
In spite of a labor market often described as rigid and hamstrung by high labor costs, France is now crucial to several international companies as a hub for research and project execution, among them Italy’s Saipem. “Saipem France has become a leading project execution center for Saipem globally,” declares Fabio Pallavicini, the company’s CEO “Technological development is undeniably critical to our success and explains the importance of our Paris office as a project execution center. We have established lasting relationships with French universities and research centers to develop new technologies.”
Of course it’s not all smooth sailing for the French oil and gas sector. A nation-wide ban on fracking has dashed hopes of seeing domestic exploration of the subsoil in spite of the belief that the country is home to some of the largest reserves in Europe. Meanwhile companies across the industry are feeling the fallout of plummeting oil prices. Despite these challenges most French decision-makers interviewed by PharmaBoardroom for this report remain confident that they will be able to adapt to the current market situation.
“If I were to make any forecasts on the evolution of Technip in coming years, I would predict a greater ability to drive costs down and rely on our conceptual resources to produce innovative solutions.” declares Thierry Pilenko, CEO of Technip, adding that, “despite its cyclical nature, the current crisis must be addressed by implementing structural changes. I believe that the need for cost reduction emerged prior to the crisis. The steps we have taken to broaden our portfolio of solutions have contributed significantly to our solid performance.”
“The energy sector itself has undergone unprecedented changes in the last fifteen years,” emphasizes Patrick Pouyanné, CEO of Total. Undeterred, the leading French oil and gas companies have adapted to stand strong in the face of today’s challenges. “As a major oil and gas company, it is our responsibility to embrace and participate in the evolution of the energy mix.”
This new report on the French oil and gas sector, available today on EnergyBoardroom for free download, examines how France was able to develop such a strong oil and gas sector, how the country’s leading companies are weathering the downturn in the oil price, and where these companies will be focused globally for the mid- to long term.
Patrick Pouyanné, CEO, Total
Thierry Pilenko, Chairman and CEO, Technip
Philippe Crouzet, Chairman, Vallourec
Jean-George Malcor, CEO, CGG
Fabbio Pallavicini, CEO, Saipem
Didier Michaut – Daniel, CEO, Bureau Veritas
Yves Company, CEO, Spie Oil & Gas
Jerome Ferrier, President, French Gas Association
Jean Ropers, Chairman, GEP-AFTP