Energy
April 19, 2024
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Groningen Gas Field Closes After €426 Billion in Profit and Years of Earthquakes

The Netherlands has ended gas production at the Groningen field, Europe's largest, prioritising the safety of residents who endured years of damaging earthquakes caused by extraction.
Groningen Gas Field Closes After €426 Billion in Profit and Years of Earthquakes
Groningen Gas Field

Years of fear and relentless damage culminated in a historic decision for the Netherlands: production at Europe's largest gas field in Groningen has officially ended. The residents of Groningen have endured over 1,600 earthquakes triggered by the extraction process, their homes damaged and lives upended.  Despite vast profits – a combined €426 billion for the state and oil companies – the safety of citizens was ultimately prioritized.

State Secretary Hans Vijlbrief made a symbolic gesture in the village of Kolham, where the gas field was first discovered, marking this pivotal moment. Despite an estimated 450 billion cubic meters remaining, enough to supply the Netherlands for a decade, the government stands firm. Intricate production systems will be fully dismantled and sealed, ensuring no future extraction.

Initially aiming to end gas production in 2018, the energy crisis following the Ukraine conflict led to a temporary extension. However, the recent approval by the First Chamber of Parliament solidifies the decision.

This transition marks a significant shift for Groningen. Over six decades, approximately 2,300 billion cubic meters of gas, nearly half for export, brought immense wealth to the Netherlands, Shell, and ExxonMobil. Yet this profit came at an immeasurable cost to the community. Last year, a parliamentary inquiry exposed a systematic failure, where financial gain took precedence over the well-being of residents. The government and oil companies have since acknowledged this grave error.

The Netherlands now faces a crossroads.  Will this closure pave the way for a robust investment in renewable energy sources, or will it introduce new energy security challenges for the nation?

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