GDF Suez CEO Comments on Shale Gas Reversal

In an interview with Les Echos, GDF Suez CEO Gerard Mestrallet questioned the ban on the exploration of shale gas in France prior to investigations being undertaken.

The French government has done an about face on shale gas, moving to cancel exploration licenses in southern France that were granted in March 2010 to Total SA and Schuepbach Energy, which is reported to be working with GDF Suez.

Mestrallet sought the establishment of a clear set of rules for gas prices.

"France will freeze gas prices on one side and the other refuses to produce shale gas. I recall that if natural gas is cheap in the U.S., thanks to unconventional gas. "

The GDF Suez CEO advocated a continued research on methods of extracting unconventional gases.

A cleaner, less controversial technology than the hydraulic fracturing technology presently used in shale gas extraction would bring the government of Prime Minister Francois Fillon, currently opposed to the exploitation of shale gas, to review its position:

"There is no question of closing the door to technological advances that allow for future access to new energy resources," commented Fillon during his speech on Tuesday to the General Assembly in favor of cancellation of licenses already granted.

Mestrallet comments follow those of Christophe de Margerie, Chairman of Total. (Read HERE)