France made a major announcement earlier in the week that the country will ban all oil and gas production by 2040. The Parliament passed a law banning the fuels. France will not allow fracking or extraction and will not issue any new permits in the country.
Overseas territories are also included within the legislation.
Lawmakers claim that the move will not harm the country’s economy. France is a major hydrocarbon importer. The country is almost completely reliant on these imports, making the legislation symbolic.
French President Emmanuel Macron states that he is “very proud” of the measure.
French lawmakers hope that France’s bold move will inspire other countries to also ban oil and gas production.
“Very proud that France has become the first country in the world today to ban any new oil exploration licences with immediate effect and all oil extraction by 2040. #KeepItInTheGround#MakeOurPlanetGreatAgain,” tweets Macron.
Macron’s use of the #MakeOurPlanetGreatAgain hashtag is a jab at United States President Donald Trump. Trump pulled out of the Paris Climate Accord. Macron has vowed to continue to pressure Trump to change his decision and rejoin the world’s effort to tackle climate change.
Oil and gas companies are scrambling to find new ways to maximize output, reduce their impact on the environment and leverage new, cleaner technologies
Companies, including FieldAP, are working to help production companies visualize field development and manage costs to extract as much oil and gas before the ban takes place. Oil producers may be forced to relocate to other countries where production is still prohibited.
France’s oil production is meager, with the country producing just 16,000 barrels of oil daily. Russia, in comparison, produces 10.5 million barrels of oil daily, while Saudi Arabia produces 10.4 million barrels daily.
France has made a commitment to reduce emissions by 40% by 2030 and 75% by 2050. The move will help the country move closer to those goals. Renewable energies will be a key factor for the country in meeting those targets.
The news comes during the same week when reports emerged that shale oil drillers in the United States were expecting major production gains to start the new year. Crude oil production is expected to rise by 94,000 barrels daily in January in seven shale regions.
Total output in these major shale regions is expected to surpass 6.4 million barrels daily.
Production in the United States has increased in recent years, greatly impacting OPEC’s efforts to reduce the oil supply glut and increase oil prices.
Shale drillers in the United States have amplified their drilling efforts since January 2017. The country’s drillers were producing 5.2 million barrels daily at the start of 2017. Drillers are expecting production to top 6.4 million barrels daily to start off 2018, an increase of 1.2 million barrels of oil per day.
America’s shale production increases are expected to rise fastest in the New Mexico and Texas region in the Permian basin. North Dakota’s Bakken Shale is expected to have a 9,000 barrel increase, while the Niobrara basin will have a 6,000 increase.