Total’s new boss sets tone for a new era

The new head of French energy major Total, Patrick Pouyanne, in his first public appearance since his predecessor Christophe de Margerie was killed in a Moscow plane crash has challenged Europe to fight Washington over the US oil export ban,.

Patrick Pouyanne said the export ban flouts free-trade agreements and puts European and Asian refiners at a disadvantage, making a bold appeal to European politicians.

“We need to fight and put this topic on the table,” Pouyanne said. “I hope the European Commission raises this issue, the refiners in Europe and Asia are suffering from one rule. That is the US cannot export oil.”

The pointed comments on US policy met with a rare standing ovation, suggested he has inherited some of his flamboyant mentor’s talent for controversy.

Painted by some as a quieter figure to lead Total by comparison with de Margerie – who was known for his charisma, risk-taking, former refining head Pouyanne said he would keep the company on the course set by his predecessor.

De Margerie was an outspoken critic of US and European sanctions against countries like Russia and Iran, arguing business relations forge deeper ties between countries and increase understanding.

He was also not afraid of making bold statements at odds with many in the often conservative industry, saying oil production would peak and struggle to keep up with rising demand back in 2008 as prices raced to a record high near $150 a barrel.

Pouyanne said he agreed with de Margerie’s stance on opposing sanctions against Russia.

The U.S. government is not expected to relax the crude oil export ban in the near future, despite a shale oil revolution that has put the country on course to become the world’s largest producer for the first time in decades.

The Commerce Department notified two companies earlier this year they could export minimally processed light oil, which many U.S. refiners are not particularly well suited to processing. But since the summer the department has put a hold on similar applications from more than 20 companies.

Since early 2011 US crude oil has fallen to a large discount to international benchmark North Sea Brent, as bottlenecks of oil have formed in the Midwest of the country.

The lower US oil price has benefited many refiners in the country, while plants in Europe and Asia have struggled with overcapacity, weak demand and low margins. Some plants have closed or sought government help, including some of Total’s.

While the United States bans the export of crude oil – a legacy of the Arab oil embargoes in the 1970s – it does allow the export of refined products like gasoline and diesel, adding to pressure on plants in other regions.