Crude Petroleum Extraction in France - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Crude Petroleum Extraction in France industry analysis

Fossil fuels have been extracted in France since the beginning of the 20th century, helping to secure the country's energy supply. Today, crude oil is still used in a wide range of industries, the transport sector and private households. However, low international oil prices and dwindling reserves have put the industry under increasing pressure. The COVID-19 pandemic and the resulting sharp drop in demand for petroleum products led to a decline in prices in 2020. Following this, though the reopening of the European economy and the resumption of production activities drove a rapid increase in demand for fossil fuels in 2021. The beginning of the Russia-Ukraine war in February 2022 and the embargo on crude oil import from Russia further fuelled supply shortages and oil prices rose again over the year. As a result, extraction companies’ revenue edged upwards. However, this effect waned in 2023 as supply shortages abated, meaning the industry experienced a decline in revenue due to a drop in crude oil prices.

Trends and Insights

• Geopolitical tensions have reshaped Europe’s oil landscape. European nations have scrambled to diversify their fuel inputs following Russia’s invasion of Ukraine, while Western sanctions have forced Russia to redirect its crude oil exports.
• Demand for oil remains resolute from hard-to-abate sectors. Although decarbonisation efforts have eaten into oil consumption, sectors like transport and heavy industry have so far proved difficult to decarbonise.
• Partnerships on oil fields maintain a degree of fragmentation. Although limited oil reserves breed dominance of a few large multinationals and state-owned corporations, the prevalence of joint ventures ensures some involvement for small companies.