Drilling in Arcachon: why is oil still extracted in France?
Despite the 2017 law that aimed to end the production of gas and hydrocarbons in France by 2040, the Canadian group Vermilion plans to drill eight new oil wells in the forest of La Teste-de-Buch, near Arcachon. Why is this happening and what are the implications for the environment and the energy transition?
The context of oil production in France
France is not a major oil producer, compared to other countries like Saudi Arabia, Russia or the United States. According to the International Energy Agency, France produced about 16,000 barrels of oil per day in 2020, which represents only 0.02% of the global production. Most of the oil production in France comes from the Paris Basin and the Aquitaine Basin, where Vermilion operates.
Vermilion is the first oil producer in France, with 130 employees and 64 oil and gas fields in operation. The company, which also works in North America, acquired the concession of Cazaux, near Arcachon, in 1997. The concession, which has been exploited since the 1960s, has a current production estimated at 1,500 barrels per day.
Vermilion intends to drill eight new wells in order to “reach oil reserves that have not been exploited yet” on the site of Cazaux. The company hopes to maintain the production of the field until 2040, which is the deadline for the production of oil and gas in France.
The controversy over the new drilling project
The project of new drilling in Arcachon has sparked criticism and opposition from environmental activists, local residents and politicians. They argue that the project is incompatible with the objectives of the 2017 law, which prohibits the issuance of new exploitation permits and the renewal of existing ones. They also denounce the risks of pollution, noise and landscape degradation that the project could entail.
The project was subject to a public inquiry, which gave a favorable opinion on November 20, 2023. The inquiry report stated that if France did not produce oil, the environmental cost of imported oil would be much higher. It also highlighted the economic and social benefits of the project, such as the creation of jobs, the payment of taxes and royalties, and the support of local development.
The final decision on the project belongs to the Ministry of Ecological Transition, which has not yet expressed its position. The ministry could either authorize the project, reject it, or impose additional conditions.
The challenges of the energy transition in France
The debate over the new drilling project in Arcachon raises the question of the role of oil in the energy transition in France. According to the French government, the 2017 law aims to “gradually end the exploration and exploitation of hydrocarbons in France and its overseas territories, in order to leave fossil fuels in the subsoil and to move towards a low-carbon economy”.
However, some experts argue that the law will have a limited impact on the reduction of greenhouse gas emissions, as France will still depend on imported oil to meet its domestic demand. According to Francis Perrin, a researcher and specialist in energy issues, producing oil in France is not uninteresting to reduce the energy cost. He also points out that the law allows some exceptions, such as the exploitation of non-conventional hydrocarbons, such as shale gas or oil sands.
The energy transition in France also depends on other factors, such as the development of renewable energy sources, the improvement of energy efficiency, the diversification of energy mix, and the change of consumption patterns. According to the National Low-Carbon Strategy, France aims to reduce its greenhouse gas emissions by 40% by 2030 and by 75% by 2050, compared to 1990 levels. To achieve these goals, France will have to face many challenges and choices in the coming years.
