Court in the Netherlands Rejects Claims Against Minimum Gas Production at the Groningen Field
Dismissed lawsuits against the government’s decision to allow a minimum level of gas production at the Groningen field in 2023, despite seismic risks.
This was reported on August 30, 2023 by the Netherlands’ highest court.
The Court ruled:
- the government was guided by security concerns when it decided to limit natural gas production to 2.8 billion m3/year until October 1, 2023;
- this level was considered the minimum necessary to keep the wells running and to be able to respond to crises that could lead to gas shortages for Dutch households.
Opponents argued that natural gas production at the field should have been completely stopped in order to minimize tremors.
Europe’s largest gas field, operated by a joint venture between Shell and Exxon Mobil, still has large reserves of natural gas.
Merits of the Groningen field:
- for the curious, we recall that it was here that the Groningen principle was invented – Take – Or – Pay, then – progressive, but now so unloved in the West;
- Dutch oil and gas then began to develop so rapidly that the economy fell ill with the Dutch disease;
- for 60 years of gas production in Groningen, about 363 billion US dollars have been earned for the country and the state budget;
- for many years, social projects were financed with the funds received.
There is also a negative:
- many residents living above the gas field are still experiencing the devastating effects of earthquakes caused by gas extraction, of which there are already 1594;
- there will be protracted earthquakes for many years to come;
- about 250,000 individual claims for damages were considered.
Authorities’ intentions:
- from October 1, 2023, it is planned to stop production and mothball the field due to frequent man-made earthquakes caused by gas production;
- the decision to close the field was not final:
– could be subject to revision in the event of an aggravation of the energy crisis,
– if necessary, production can be resumed within 2 weeks; - The Netherlands will not experience a shortage of gas after the closure of the Groningen field in light of the concluded deals on gas imports from Norway, Qatar and the United States.
In June 2023, the Dutch authorities denied the allegation that the Groningen field was permanently closed.
Groningen gas field
- located in the north of the Netherlands;
- opened in 1959;
- deposits are located at a depth of 2.5-3 km;
- residual gas reserves at the field amount to 2.7 trillion m3, cumulative production – more than 1.5 trillion m3;
- 300 wells are operating at the field;
- the gas contains methane (81%) and nitrogen (14%);
- the field operator is NAM, a joint venture between Royal Dutch Shell and Exxon Mobil;
- since 1994, the deposit area has experienced more than 900 earthquakes with a magnitude of up to 3.6;
- since the 1980s up to 100 tremors are recorded annually in this area.
The discovery of the Slochteren gas field in 1959 caused euphoria in the Netherlands: a new source of energy and income had been found!
The commissioning of the field happened in 1963 and made the use of natural gas very popular.
The Netherlands has specifically switched to natural gas in many industries.
The economy grew, jobs were created, and gas revenues contributed to national prosperity.
Already in 1972 there was a publication about the possible subsidence of rocks as a result of gas production in Groningen, but this went unnoticed.
The earthquake in the vicinity of Assen in 1986 is a turning point.
This earthquake occurred in an area where earthquakes do not occur and took everyone by surprise.
Skillful protection for almost 30 years made it possible to extinguish this topic, but in 1993 the connection between gas production and earthquakes was proved.
