Exploration for oil and gas has slumped sharply in France.
The Ministry of Industry projects exploration spending in France in 1992 will be 30% less than the 820 million francs projected earlier.
The ministry's field conservation division pointed out that a number of companies that asked for exploration permits 2-3 years ago have withdrawn their applications after being awarded the permits. Only one seismic crew worked in France during May-July, with seismic work overall this year only two thirds of the level a year ago and one fourth of the 1989 level. Only eight wildcats have been drilled in France in the first 7 months of 1992, compared with 33 in 1991. Only 15 development wells have been drilled in France during the period vs, 36 in 1991.
The ministry cites the decline in the U.S. dollar to an exchange rate of less than 5 francs and persistently low crude oil prices. That comes despite the halving of taxes on production from new discoveries.
What the ministry finds especially troubling about the exploration slump is that it comes against a backdrop of sliding French oil production, which has plunged to about 59,000 b/d from about 67,000 b/d in 1988.
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