Industry Response to New Protectionism
In this special issue of Politique étrangère devoted to the proceedings of the conference organized by Ifri on April 10, 2019, in the Grand Amphitheater of the Sorbonne, on the occasion of its fortieth anniversary, discover the debate moderated by Thierry de Montbrial between Jean-Paul Agon and Patrick Pouyané.
Thierry de Montbrial
Is Total a French company? Is L'Oréal a French or Swiss company? In this session, we would like to see how two large international companies are affected by what geopoliticians or geoeconomists perceive as the major uncertainties for the future. Their operations are indeed geopolitical by nature.
Total's and L'Oréal's market capitalization as at April 3, 2019 is very close; L'Oréal prevails with 134.6 billion euros, ahead of Total at 132.1. When we look at turnover, it is 177 billion for Total and 27 billion for L'Oréal. As for operating profit, it is 13.6 billion euros for Total and 4.9 for L'Oréal; the net result is 11.5 for Total and 3.9 billion for L'Oréal. Cash flow is 10.3 for Total and 3.9 for L'Oréal, and investments are 10.5% for Total and 1.4% for L'Oréal. In terms of staff, Total has 104,000 and L'Oréal 86,000. How is it that the market capitalization is the same, with such different figures? How is it that Total's market capitalization is not markedly higher than L'Oréal's? Could there not be explanations related to geopolitical uncertainties behind this?
Oil and gas: specific geopolitics
Patrick Pouyanné
All of this raises the question of the future of large oil and gas companies. We are in a world where energy transition is gaining a foothold. This is why Total is implementing not only an oil and gas strategy, but also an electricity one. The question is, really: what will the future of our companies be? Of course, the framework of our thinking is geopolitical. Our largest competitors are “Anglo-Saxon”, the major global shareholders are American and British, and as always, they prefer to invest in companies in their country rather than those in a Europe, whose geopolitical future seems uncertain. Many US oil companies are just about 1.5 times larger than mine.
I would like to recall some characteristics specific to the world of energy.
It is a very capital-intensive industry. Companies like ours must develop resources in many countries that lack the financial means to do so themselves. It is a long-term industry (we invest in projects over 20 or 30 years); an industry that implements a lot of technical skills (engineering) – we have to provide a strong innovative capacity: you do not improvise as a geologist or driller... Finally, this industry affects states' national sovereignty. Our profession is to develop the natural resources of the countries we work in, and these natural resources generate significant tax revenue. Therefore, we are a key partner of the states involved. [...]
Jean-Paul Agon is Chairman and CEO of ‘L’Oréal.
Patrick Pouyanné is Chaiman and CEO of Total.
Thierry de Montbrial is Founder and Executive Chairman of Ifri.
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Industry Response to New Protectionism
Thierry de MONTBRIAL
Founder and Executive Chairman of Ifri - Member of the Institut de France (Académie des Sciences morales et politiques)
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Text published in Politique étrangère, Vol. 91, No. 2, 2026.
War and Technology: An Approaching Military Revolution?
Historically, technological change has altered how battles are fought but has not overturned the fundamental principles of war. However, three considerations may now represent an actual revolution: the recourse to tactical nuclear weapons, the development of software for “multi-domain operations,” and the prospect of general artificial intelligence. The organization of militaries and the use of force need to be rethought in this light.
War and Technology: An Approaching Military Revolution?
Historically, technological change has altered how battles are fought but has not overturned the fundamental principles of war. However, three considerations may now represent an actual revolution: the recourse to tactical nuclear weapons, the development of software for “multi-domain operations,” and the prospect of general artificial intelligence. The organization of militaries and the use of force need to be rethought in this light.