popular articles

The End of Gas Extraction in Groningen: Impact and Prospects

The Netherlands puts an end to gas extraction in Groningen, marking a turning point for the energy industry and local communities. Discover the reasons behind this decision and its consequences.
extraction de gaz naturel

Please share:

Gas extraction in Groningen, Europe’s largest, has come to an end after a historic decision by the Netherlands. This decision, taken after decades of earthquakes and controversy, has major implications for the energy sector and local communities.

Historical and geopolitical context

The beginnings of gas extraction in Groningen date back to 1963, a period when the economic benefits seemed to outweigh the potential drawbacks. However, over the decades, the local population has had to contend with low-magnitude, near-surface earthquakes caused by the vacuum pockets formed during gas extraction. These earthquakes caused significant material damage and raised concerns about the safety of local residents.

Local residents, initially pleased with the announcement of the imminent closure of the deposit in 2018, were soon disillusioned by expert warnings that earthquakes could persist for years. In 2022, the Dutch government took the decision to postpone closure due to global energy uncertainties, largely linked to Russia’s invasion of Ukraine.

Jan Wigboldus, president of the Groningen Gas Council, a local association that defends earthquake victims, points out: “A lot of people in the province are suffering from psychological problems because of gas extraction.” In addition, many victims were faced with legal and technical challenges related to compensation.

Economic implications

According to Shell, some 2,300 billion cubic meters of gas have been extracted from the Groningen field. Between 1963 and 2020, some 429 billion euros (adjusted for inflation) were generated by Groningen gas, with 85% of these profits going to the Dutch state. The end of extraction therefore represents a significant change in the country’s finances.

For several months now, huge mountains of pipeline debris have been visible on the grounds of former extraction stations, already dismantled or in the process of being dismantled. Despite the end of extraction, experts believe that earthquakes could continue to shake the region for years to come.

Human consequences

Many houses in the Groningen area have been restored or rebuilt, incorporating earthquake-resistant structures to ensure the safety of their inhabitants. However, the situation remains worrying, as underlined by resigning Prime Minister Mark Rutte during a visit, declaring that there are “tens of thousands of children in a difficult situation”.

The end of gas extraction in Groningen marks a turning point in the Netherlands’ energy history, with major economic, environmental and social consequences. The authorities have pledged to take steps to manage the repercussions of this decision, while meeting the needs of local residents. As the Netherlands strives to diversify its energy supply, the future of the Groningen region and its economy remains uncertain.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Following a contractual dispute with Gazprom, Austria, which relied on 90% of Russian gas this summer, faces a supply halt. Despite the crisis, the country claims to have secured its energy supply.
North Macedonia strengthens its energy security with an agreement with SOCAR, aiming at the diversification of natural gas supplies and innovative projects like gas cogeneration.
North Macedonia strengthens its energy security with an agreement with SOCAR, aiming at the diversification of natural gas supplies and innovative projects like gas cogeneration.
Increase in Premiums for 2025 LNG Contracts Following Trump’s Victory
Increase in Premiums for 2025 LNG Contracts Following Trump’s Victory
The new European methane regulation is pushing the U.S. to strengthen the compliance of its LNG, paving the way for crucial dialogue between the two major players in the global energy market.
The new European methane regulation is pushing the U.S. to strengthen the compliance of its LNG, paving the way for crucial dialogue between the two major players in the global energy market.
Sinopec and TotalEnergies are negotiating a long-term LNG contract at under 12% of crude oil prices, an unprecedented threshold for Northeast Asia. The agreement includes seller-favorable flexibilities while remaining subject to finalization.
With a net profit of $1.24 billion in Q3 2024, ADNOC Gas surpasses expectations and announces a growth strategy targeting a 40% increase in EBITDA by 2029, supported by $15 billion in investments.
With a net profit of $1.24 billion in Q3 2024, ADNOC Gas surpasses expectations and announces a growth strategy targeting a 40% increase in EBITDA by 2029, supported by $15 billion in investments.
The Norwegian Ministry of Energy has formalized an agreement to nationalize its pipeline network, buying shares from seven private owners and consolidating state control over a crucial strategic infrastructure.
The Norwegian Ministry of Energy has formalized an agreement to nationalize its pipeline network, buying shares from seven private owners and consolidating state control over a crucial strategic infrastructure.
Despite escalating tensions and the preparation of a Russian counteroffensive in the Kursk region, Russian gas flows to Europe via Ukraine continue as usual, according to data from GTSOU.
Despite escalating tensions and the preparation of a Russian counteroffensive in the Kursk region, Russian gas flows to Europe via Ukraine continue as usual, according to data from GTSOU.
Contract premiums for 380 CST fuel oil in Hong Kong fell in November due to weak demand and limited supply, influenced by improved weather conditions in China.
After a slowdown in September due to maintenance, Norwegian gas exports to Northwest Europe reached 9.56 billion m³ in October, reflecting a market still vulnerable according to Equinor.
After a slowdown in September due to maintenance, Norwegian gas exports to Northwest Europe reached 9.56 billion m³ in October, reflecting a market still vulnerable according to Equinor.
The transit of Russian gas through Ukraine may end in late 2024 if no agreement is reached between European buyers and Kyiv. This decision could increase pressure on the European energy market.
The transit of Russian gas through Ukraine may end in late 2024 if no agreement is reached between European buyers and Kyiv. This decision could increase pressure on the European energy market.
During a visit to Tokyo, Qatar’s Minister of Energy discussed the future of LNG supplies with Japanese companies, as several long-term contracts approach their expiration.
During a visit to Tokyo, Qatar’s Minister of Energy discussed the future of LNG supplies with Japanese companies, as several long-term contracts approach their expiration.
To meet growing demand, global gas liquefaction capacity could increase by 45% by 2030, supporting decarbonization goals in countries like India, which rely on natural gas for their energy transition.
After a drop due to maintenance in September, Norwegian gas exports to Northwest Europe increased by 49% in October, a sign of sustained demand despite an uncertain market.
After a drop due to maintenance in September, Norwegian gas exports to Northwest Europe increased by 49% in October, a sign of sustained demand despite an uncertain market.
Thanks to significant gas projects, Guyana and Suriname could supply up to 12 million tonnes of LNG per year by the next decade, offering a competitive alternative in the global market.
Thanks to significant gas projects, Guyana and Suriname could supply up to 12 million tonnes of LNG per year by the next decade, offering a competitive alternative in the global market.
Adnoc signs a historic agreement with SEFE to secure Germany's LNG supply
Adnoc signs a historic agreement with SEFE to secure Germany's LNG supply
The new Northern Natural Gas Pipeline connects shale gas resources from Neuquén to northern Argentina, aiming to reduce imports and open up export opportunities.
Senegal is poised for an energy milestone with the final investment decision (FID) for the Yakaar-Teranga gas project expected in the first quarter of 2025.
Senegal is poised for an energy milestone with the final investment decision (FID) for the Yakaar-Teranga gas project expected in the first quarter of 2025.
The White House calls on an appeals court to suspend the obligation to lift the moratorium on liquefied natural gas (LNG) export permits imposed by a Louisiana court.
The White House calls on an appeals court to suspend the obligation to lift the moratorium on liquefied natural gas (LNG) export permits imposed by a Louisiana court.
Algeria strengthens its position in the European energy market with a new agreement between Sonatrach and ČEZ Distribuce for the supply of natural gas, meeting the Czech Republic's growing demand for energy diversification.
Algeria strengthens its position in the European energy market with a new agreement between Sonatrach and ČEZ Distribuce for the supply of natural gas, meeting the Czech Republic's growing demand for energy diversification.
Record Volumes for LNG Futures in October on ICE
Gas consumption in Germany falls for the second consecutive year
Gas consumption in Germany falls for the second consecutive year
EU’s Energy Security Strengthened: Gas Storage Surpasses Targets Before Winter
EU’s Energy Security Strengthened: Gas Storage Surpasses Targets Before Winter
The EU Invests in a New Gas Corridor to Secure LNG Supply from the U.S.
The EU Invests in a New Gas Corridor to Secure LNG Supply from the U.S.

Advertising