Ten days before the withdrawal of Thierry Desmarest, who will become non-executive chairman of the board of directors on Total on February 14, his successor to the general management, Christophe de Margerie, prints his mark by confirming the interest of the 5th largest oil group in the world for the nuclear sector.
Total is the 5th largest oil company in the world in terms of production, behind ExxonMobil, Shell, BP and Chevron.
FINANCIAL RESULTS.
In 2005, the group achieved a turnover of 143 billion euros. Its net profit reached 12 billion. The group has made 11,1 billion euros in investments.
PRODUCTION.
Total produces 2,5 million barrels (oil equivalent) every day, refines 2,7 million barrels and sells 3,8 million barrels of refined products at its service stations. He estimates that gas production will represent 40% of its activity by 2010.
In an interview published by the Financial Times on February 5, he indicates that "one day we will certainly participate in this adventure". Why this choice ? Because "we do not only consider energy as our business but also as a responsibility towards consumers", he replies. And because the oil and gas reserves, more than 80% controlled by the producing States and their national companies, are hardly accessible to international "majors".
What can Total do in a sector dominated by groups operating power plants (EDF, E.ON ...) and manufacturers of nuclear reactors (Framatome-Siemens, General Electric, Toshiba-Westinghouse ...)? It only holds 1% of the capital of the French group Areva and Mr. Desmarest has always assured that he does not intend to go up in the capital of the world number one in nuclear power thanks to an opening of his capital . He is nonetheless a director of the group led by Anne Lauvergeon.
BEYOND OIL
Disrupted by investments in upstream oil, the group could invest in uranium mines. It could also start operating nuclear power plants. The reflection of Total's experts is old, but still at a preliminary stage, underlines one of its spokespersons.
The company has already studied the possibility of building a power plant in Canada, in the province of Alberta, to provide the energy necessary to extract the oil sands from its deposits in the Athabasca region to replace gas. become very expensive. Studies have recently been relaunched by Canadian authorities.
Total is accumulating profits - net income of 12 billion euros in 2005, undoubtedly more in 2006 - and has the means to diversify. Like most of its rivals, the group is developing in renewable energies, particularly wind power. But Mr. de Margerie thinks that these "green" energies will only represent a limited part of the "energy mix" of companies and countries in the years to come.
In the very secret world of the big oil companies, the new boss of Total decides with his outspokenness. If he believes in the promise of technological breakthroughs to push the physical constraints of hydrocarbon extraction ever further, he judges those who think that oil production can be pushed up to 120 barrels a day to be very daring (against 000 currently), such as the International Energy Agency (IEA).
The big companies like ExxonMobil, Royal Dutch Shell, Chevron or BP (acronym of beyond petroleum, beyond petroleum) are already thinking of a more or less near future where the production and refining of black gold will no longer be the heart of their profession. Total is one of these groups looking for new energy horizons.
Oil tankers must therefore have a politico-strategic vision of the future, not just economic. The future is full of uncertainty. In 2020-2030, hydrocarbons will be more difficult to access and more costly to extract. Total geologists estimate that at the current rate of consumption, the peak of production could be reached in the 2020s.
In addition, the revival of petroleum nationalism following the rise in the price of black gold can only exacerbate fears about a possible disruption of energy supplies. Struggling in Venezuela, Bolivia and Russia, Total is well placed to find out.
Uranium mines are less concentrated in risk areas. According to the Nuclear Energy Agency (dependent on the OECD), "resources are abundant enough to support the growth" of this energy.
But few "majors" are interested in it, at least publicly. ExxonMobil has had a dormant division for years. The Russian giant Gazprom seems the most enterprising. The Kremlin is in the process of forming a public holding company capable of selling Russian technology and know-how to all countries with an ambitious civilian nuclear program, notably China and India.
source: the Monde.fr
I particularly like the following passage:
The company has already studied the possibility of building a power plant in Canada, in the province of Alberta, to provide the energy necessary for the extraction of the oil sands (...)
To build a nuclear power station to produce the energy necessary for the extraction of the oil sands, the idea is fabulous: one produces at the same time CO2 and nuclear waste: the dream of any ecologist (without speaking about the m3 of polluted fleet)
Total: you will no longer come to us ...
