Natural gas output at Europe’s largest onshore gas field, the Netherlands’ Groningen, continued to fall sharply in December following the Dutch government’s tightening of the production quota, with volumes down 43% year on year.

The rapidly declining output at the field has eaten away at Dutch gas stocks, which have now fallen below Gas Year 2018 levels and are well below the European average.

A production cap has been put in place to prevent earthquakes linked to gas extraction at Groningen and the Dutch government plans to phase out gas extraction at the field completely by mid-2022. read more

Below is a translation of a news brief issued today 7 Nov 2019 – by NAM, the Shell/Exxon Joint Venture company responsible for the earthquake blighted Groningen Gas Field. And also for the consequential potential bill for untold billions to deal with damaged residences like the example in the photograph. Someone forget to mention in the news brief the shocking reason why the Dutch government ordered the closure. The word “earthquake” does not appear anywhere.

TRANSLATION

Close gas field Groningen started in Ten Post

It seems only a signature, but it marks the start of the closure of the Groningen field. At the end of October, NAM transferred the Ten Post gas extraction site to Meuva.  This company will start cleaning up the location around 11 November. read more

GRONINGEN, the Netherlands — Driving through fields of low-lying Dutch farmland you pass an occasional odd cluster of silvery pipes and tanks. They are the only visible sign that deep below this northeast corner of the Netherlands is one of the world’s largest natural gas fields.

Unless you stop by one of the nearby farmhouses weakened by earthquakes linked to gas extraction. At her handsome home in the village of Appingedam, Nicole van Eijkern pointed to sagging external walls and cracked ceilings. Heavy beams buttress her house, inside and out, and it is scheduled to be torn down. read more

The anger among Groningers was great after two earthquakes last spring. It fueled the fear of new cracks and subsidence, while in some cases the old damage was not even repaired by the syrupy claim settlement and reinforcement operation.

Printed below is an English translation of an article published 10 Sept 2019 by the Dutch FT, Financieele Dagblad. NAM is the Shell/Exxon Joint Venture company responsible for the earthquake blighted Groningen Gas Field and consequential potential bill for untold billions to deal with damaged residences.

Saying goodbye to Groningen gas much faster than expected

Bas Knoop In short

The cabinet wants to stop gas extraction in Groningen much faster than planned. Not in 2030, but already in 2022.

Next year gas extraction will fall to 11.8 billion cubic meters, just below the ‘safe’ level of 12 billion cubic meters.

In order to accelerate the gas extraction, nitrogen is added to imported high-calorific gas. Nine large industrial users are no longer allowed to use Groningen gas from October 2022.

Due to the lower gas extraction, the natural gas revenues for the cabinet will fall by €400 million next year. A new gas deal with Shell and ExxonMobil is being prepared. read more

Bart H. Meijer: SEPTEMBER 10, 2019

* Gas production at Groningen field to end by 2022

* To end 8 years earlier than initially planned

* Groningen production capped at 11.8 bcm in 2019/2020

* To be kept operational until 2026 at latest in case of exceptional demand (Adds detail)

By Bart H. Meij

er

AMSTERDAM, Sept 10 (Reuters) – The Netherlands will halt production at Groningen, Europe’s largest onshore natural gas field, by 2022, eight years earlier than initially planned, the Dutch government said on Tuesday. read more

AMSTERDAM, Aug 27 (Reuters) – The Dutch government will end production at the vast Groningen natural gas field sooner than previously announced, Dutch Economy Minister Eric Wiebes said on Tuesday.

“I expect the Groningen field to no longer be necessary very soon”, Wiebes said in an interview on Dutch public radio.

“Things are moving very fast, a lot faster than anyone would have predicted some time ago.”

Output at Europe’s largest onshore gas field, operated by Royal Dutch Shell Plc and Exxon Mobil Corp, has been slashed in recent years as tremors blamed on drilling have damaged buildings and sparked unrest in the region. read more

The government decided to cut production after residents blamed hydraulic fracturing for damage to buildings in the area. It was decided earlier to schedule the field’s closing for 2030 while progressively reducing production, after a 3.4 magnitude earthquake occurred near the field last year. The field is operated by Nam, a joint venture established by oil supermajors Royal Dutch Shell and ExxonMobil.

July 5, 2019

Dutch advisory body Council of State’s Administrative Jurisdiction Division (Adj) Wednesday requested from the government further explanation for the closing of a major onshore field, Kallanish Energy learns.

The Groningen field is the largest in Europe. The government decided to cut production after residents blamed hydraulic fracturing for damage to buildings in the area.

It was decided earlier to schedule the field’s closing for 2030 while progressively reducing production, after a 3.4 magnitude earthquake occurred near the field last year. read more

“I understand that for many people… being seen to make profits here in the Netherlands and not having any profit to pay tax on can be odd.”

29 MAY 2019: AMSTERDAM (Reuters) – Oil and gas giant Royal Dutch Shell PLC will disclose how much tax it pays in every country in which it operates, an executive told a Dutch parliamentary panel on Wednesday, in a report to be published later this year.

Shell’s vice president for taxation Alan McLean made the promise at a hearing on taxation of multinationals called by parliament after reports emerged last year that Shell does not pay any corporate tax in the Netherlands, despite being headquartered in The Hague.

Ahead of Wednesday’s panel, Shell disclosed that it does not pay Dutch corporate taxes apart from at its NAM gas subsidiary, a joint venture with Exxon.

Worldwide, Shell reported it paid $10 billion (7.92 billion pounds) in corporate tax in 2018 and that it had an effective tax rate of 33 percent.

However, in the relatively small Dutch market it was able to use deductions on loss-making operations elsewhere to reduce its corporate tax bill to zero.

“When there’s a loss there’s no profit tax to be paid, so the arithmetic is simple,” Alan McLean told sceptical lawmakers. read more

May 28, 2019, 10:27 AM ET|About: Royal Dutch Shell plc (RDS.A)| By Carl Surran, SA News Editor

Production at the Groningen natural gas field in the Netherlands needs to be cut faster than planned, Dutch gas sector regulator SodM says after a 3.4 magnitude earthquake hit the region last week.

“From a safety perspective, SodM recommends that not more than 12B cm be extracted from the Groningen gas field in the following gas year in the event of an average winter,” the regulator says. read more

NAM is the Shell/Exxon Joint Venture company responsible for the earthquake blighted Groningen Gas Field and consequential potential bill for untold billions to deal with damaged residences.

English translation of an article published 22 May 2019 by De Telegraaf

Major earthquake in Groningen: “Bed quivered, everyone awake”

Updated Yesterday, 9:26 AM
Yesterday, 6:38 AM in the UK

GRONINGEN – The province of Groningen was shocked early on Wednesday morning by an earthquake. This had a power of 3.4, according to the KNMI. According to the meteorological service, the epicentre of the quake was in the village of Westerwijtwerd. That lies as the crow flies about 18 kilometres northeast of the capital Groningen.

The worst earthquake in Groningen so far was in 2012 in Huizinge (in the municipality of Loppersum). It had a power of 3.6. In January an earthquake occurred in the Groningen village of Zeerijp. It also had a power of 3.4. The day after that quake, about a thousand reports of damage arrived. According to the KNMI, this new quake will most likely again cause many damage reports. read more

Questions were raised at the Shell AGM on Tuesday about the earthquakes that occurred last weekend in the Groningen region and about the delays in NAM compensation payments arising from past earthquake damage to Groningen residences. Ben van Beurden apologised for the delays. The following day, a “major” earthquake occurred. See the FD article below. NAM is the Shell/Exxon Joint Venture company responsible for the earthquake blighted Groningen Gas Field and consequential potential bill for untold billions to deal with damaged residences.

Printed below is an English translation of an article published 22 May 2019 by the Dutch FT, Financieele Dagblad.

Wiebes finds one word important in Groningen earthquakes: pace

From our editor: Last update: 10 pm: May 22, 2019

Minister Wiebes of Economic Affairs and Climate sympathizes with the people of Groningen, who are ‘affected again by new damage and are concerned about their safety.’ That is what the VVD minister said on Wednesday during a – previously planned – general consultation on Groningen gas extraction.

“One thing is now important on all fronts: more speed, more pace,” says Wiebes. The minister emphasized in a statement before the start of the debate that the reduction of gas extraction, which reduces the quakes, is ahead of schedule. “But we are looking for more ways to get the extraction down faster.” Opposition politicians are critical. Henk Nijboer (PvdA) states that Wiebes has said ‘nothing new’ and Sandra Beckerman (SP) wants a debate with Prime Minister Rutte to be held. read more

Loppersum vibrates below the surface. From gas extraction and restrained anger. The earthquake of a year ago in the three kilometres away Zeerijp gave the last push for the Cabinet decision to close the gas tap in Groningen.

House in Loppersum that has been damaged by the gas quakes and whose façade needs to be supported.ROBIN UTRECH / HOLLANDSE HOOGTE

Printed below is an English translation of an article published today by the Dutch Financial Times, Financieele Dagblad. NAM is the Shell/Exxon Joint Venture company responsible for the earthquake blighted Groningen Gas Field and consequential potential bill for untold billions to deal with damaged residences.

‘I was not prepared for the intensity of the quake file’

By Ulko Jonker: Bas Knoop

Hans Engels is D66 party leader in the Senate. He is also mayor of the municipality of, in the epicentre of the Groningen gas drama. Interview about administrative failure, yellow vests and the Senate. “Raise it.”

The lovely Groningen Loppersum seems to be a song of praise for eternity. But the settled peace and quiet are deceitful. Where you expect the Groningen tongues in the local hotel restaurant ‘Spoorzicht’, you will hear Eastern European and Irish sounds. The menu is English. ‘They work in the Eemshaven and stay here’, says the hostess about the men who eagerly eat their bouncers and twelve hours. read more

Jan. 9, 2019 11:58 AM ET| By: Carl Surran, SA News Editor

The Dutch High Court says it will consider demands on Jan. 17 seeking an immediate end to gas production from the Groningen field, after the government said it would cut output gradually.

The High Court says it received 26 objections to the plan, expressing concerns about seismic risks caused by drilling and demanding an urgent halt in production.

Analysts say the court is unlikely to grant an immediate halt because the Netherlands still depends on Groningen gas for a significant part of its energy supply. read more

• In 2018 it would all be well for the earthquake victims in Groningen. But again they became victims, this time from a bureaucratic swamp.

• The underlying idea was clear: if gas extraction decreases, there are fewer quakes and fewer homes need to be strengthened.

• The goal is that Groningen residents in the earthquake area can live safely as quickly as possible

• A complete earthquake industry has emerged in Groningen…

• The decision by Minister Wiebes to stop gas extraction means that he has left € 70 billion of gas in the ground.

• A grocery mentality at the NAM, which was going to do difficult about the smallest amounts, a government that took it too long, an earthquake industry that was rigged and got the characteristics of a maze; in the end, that has all led to billions being left in the ground.

Printed below is an English translation of an article published today by the Dutch Financial Times, Financieele Dagblad. NAM is the Shell/Exxon Joint Venture company responsible for the earthquake blighted Groningen Gas Field and consequential potential bill for untold billions to deal with damaged residences.

No action but words for Groningen

BY Carel Grol: 1 JAN 2019

In 2018 it would all be well for the earthquake victims in Groningen. But again they became victims, this time from a bureaucratic swamp.

The most defining moment in the past year for Groningen was not the earthquake in Zeerijp on Monday 8 January. Not even Thursday, March 29, when Minister Eric Wiebes of Economic Affairs and Climate said: we are moving away from the gas. The actual turning point came in a meaningless Hague press room at Nieuwspoort, on Monday 2 July.

Prime Minister Rutte was visiting US President Trump that day, German Chancellor Merkel swore a government crisis, and later that evening Belgium would qualify for the quarter-final of the World Cup. Co Verdaas came into the modest room at the end of that sunny Monday morning. read more

NAM is the Shell/Exxon Joint Venture company responsible for the earthquake blighted Groningen Gas Field and consequential potential bill for untold billions to deal with damaged residences.

PRINTED BELOW IS A TRANSLATION INTO ENGLISH OF INFORMATION PUBLISHED IN DUTCH BY NAM ON 13 DECEMBER 2018

The gas year 2017-2018 ended on 1 October 2018. In this period, NAM produced 20.1 billion m3 of gas from the Groningen field. That is 1.5 billion m3 of gas less than was foreseen.
 
As a result of the quake at Zeerijp on 8 January 2018, Minister Wiebes of Economic Affairs and Climate commissioned NAM to release the intended production of 21.6 billion m3 of gas.

NAM has been asked to limit production to the extent possible within the applicable conditions. The security of supply for the Netherlands had to be taken into account.
 
This has resulted in 1.5 billion m3 less gas being produced from the Groningen gas field.
 
In addition, the last gas year was a warm year. Despite a cold period in late February – early March. ‘Groningen’ had to step in those weeks in order to meet the demand for low-calorific gas.
 
The figures on gas production in the Groningen gas field can be found on the NAM website. read more