High but erratic crude prices will not affect the objectives of France's state funded petroleum research and development program that were set to meet repercussions of low prices.
The 1989-93 program will concentrate on cutting costs, increasing exploration success rates, boosting recovery rates, and developing gas technology.
The main challenge will be trimming production costs to less than $7/bbl, says Pierre Vaillaud, general manager of Total Cie. Francaise des Petroles.
But there could be a need for fine tuning as a result of the volatile price environment, Vaillaud told a seminar organized by the French industry's government funded R&D bodies, Comite d'Etudes Petrolieres de Marines and Comite des Programmes d'Exploration-Production.
EXPLORATION, PROBLEMS
Pierre Jacquard, general manager of Institut Francais du Petrole, said France's exploration needs lie in the Southeastern basin, deeper zones in the Paris basin, and offshore in areas such as the English Channel and the Bay of Biscay.
There also are some technical problems to solve in sectors such as horizontal drilling and reservoir management.
Jacquard said properly organized and boosted, France's oil industry R&D could become the hinge of Europe's efforts in this area.
France is ahead of other European countries in taking out patents for advances in exploration and production. During the past 5 years 690 patents had been granted in France, the best in Europe but still far less than the 3,684 patents granted in the U.S.
SERVICE AND SUPPLY
The French oil field service and equipment industry expects a marginal improvement in sales this year.
Estimates from the 350 companies in the industry place sales at 36-37 billion francs ($7.2-7.4 billion), compared with 35 billion francs ($7 billion) last year. As usual, three fourths of the sales are overseas.
The total is still far below the 60 billion franc ($12 billion) peak achieved in 1982.
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