The largest natural gas field in Europe, located in Groningen, Netherlands, is set to be completely shut down due to the thousands of earthquakes it has caused. Discovered in 1959, the Groningen gas field is estimated to contain 2,740 billion cubic meters of natural gas, making it one of the largest in the world. Over the years, natural gas production became a central part of the Dutch energy supply, with almost the entire country connected to the Groningen gas network. However, the extraction of natural gas caused the ground above the field to sink, resulting in regular earthquakes that damaged tens of thousands of buildings and affected around 100,000 people.
In 2014, it was decided to gradually phase out gas production due to safety concerns, and by 2021, the production had decreased to just 4.5 billion cubic meters per year. The field still has reserves of around 450 billion cubic meters, which could cover the country’s gas needs for about ten years. However, a parliamentary investigation commission concluded in early 2023 that Shell, ExxonMobil, and the Dutch government had systematically disregarded the safety of the people for the sake of profit. As a result, the Dutch government has announced that gas production in Groningen will be completely stopped from October 1, 2023, and a compensation of €22 billion will be provided to the region.
The decision to shut down the Groningen gas field marks the end of an era for the Dutch energy supply and highlights the importance of balancing economic interests with safety and environmental concerns. The closure of the field will have significant implications for the Dutch economy and energy market, as well as for the global natural gas industry. The Groningen gas field has been a major source of revenue for Shell and ExxonMobil, who have earned around €66 billion from the gas extraction. The compensation package for the region affected by the earthquakes is a recognition of the damage caused by the gas production and a step towards addressing the social and environmental costs of energy production.
