59.4 F
Fort Worth
Tuesday, September 29, 2020
- Advertisements -
Energy Europe's biggest natural gas producer is running out of fuel

Europe’s biggest natural gas producer is running out of fuel

Other News

Closing prices for crude oil, gold and other commodities

The Associated Press Benchmark U.S. crude oil for September delivery rose 31 cents to settle at $41.60 a barrel Monday. Brent crude...

Trump to discuss energy, tour oil rig, raise money in Texas

By DARLENE SUPERVILLE Associated PressWASHINGTON (AP) — President Donald Trump will shift his focus to American energy dominance during a stop in...

Basic Energy Services makes organizational changes

Fort Worth-based Basic Energy Services, Inc. (OTCQX: BASX) in late May announced the implementation of changes to the organizational structure of the...

Texas oil producers were cutting output before Railroad Commission chose not to, Commissioner Christi Craddick says

By Cassandra PollockMay 12, 2020 Texas Railroad Commissioner Christi Craddick on Tuesday doubled down on the agency’s recent decision...

The European Union’s biggest natural gas producer is running out of reserves.

The Netherlands, also the region’s largest trading hub for the fuel, has used up almost 80 percent of its natural gas reserves, Dutch statistics office CBS said on Friday. Production fell 38 percent over the previous two years and is set to fall further as the government limits extraction because of earthquakes in Groningen, the province that houses the EU’s largest gas deposit, it said.

The nation of about 17 million people is struggling to contain tremors linked to gas production by a joint venture of Exxon Mobil and Royal Dutch Shell that has damaged thousands of homes. The government budget has been hit by the caps on extraction and declining wholesale prices, with gas accounting for just 3 percent of state income in 2015, down from 9 percent two years earlier, the CBS said.

Groningen’s decline also has broader implications for the European gas market, which will be more reliant on outside countries to meet its energy needs. European and Eurasian countries consumed 1 trillion cubic meters of gas in 2015, according to the BP Statistical Review.

“In the last 10 years Europe managed to keep its imports flat with lower consumption,” Thierry Bros, a visiting professor at Sciences Po in Paris who has studied energy for more than 20 years, said by e-mail. “Now much lower Dutch production cannot be mitigated by much lower consumption — most of the drop has occurred already. That means we will need higher imports from Russia or liquefied natural gas.”

The Netherlands produced 3.85 trillion cubic meters (136 trillion cubic feet) of gas since the discovery of the Groningen deposit in 1959, more than total global production last year, and has 940 billion cubic meters of reserves, CBS said. Output fell to 52 billion cubic meters last year, the lowest level since the early 1970s, from 84 billion in 2013.

Groningen gas production was capped at 27 billion cubic meters in the gas year that started Oct. 1, 2015. Parliament on Thursday approved a government proposal to lower the cap to 24 billion cubic meters a year for five years.

State income from gas fell to 5.3 billion euros ($6 billion) in 2015, down from 15.4 billion euros in 2013, the CBS said. Month-ahead gas on the Dutch Title Transfer Facility, Europe’s biggest hub for the fuel, has lost 13 percent this year after a 31 percent drop in 2015, according to broker data compiled by Bloomberg.

“The production ceiling put in place for Groningen has had a definite impact on gas production during the last years,” CBS said. “Considering the Groningen field accounts for almost three-quarters of the remaining reserves, Dutch natural gas production will likely fall further, despite a small increase in production from the remaining fields, most of which are in the North Sea.”

–With assistance from Kelly Gilblom

- Advertisements -
- Advertisements -

Latest News

Permian investments grow as market shows signs of recovery

CARLSBAD, N.M. (AP) — An American energy investment company has pledged $8.5 million to develop oil and gas assets in the Permian...

Closing prices for crude oil, gold and other commodities

The Associated Press Benchmark U.S. crude oil for November delivery rose 33 cents to $39.93 a barrel Wednesday. Brent crude oil for...

Closing prices for crude oil, gold and other commodities

The Associated Press Benchmark U.S. crude oil for October delivery rose 81 cents to $40.97 a barrel Thursday. Brent crude oil for...

U.S. Energy Development Corp. announces $8.5 million deal in the Permian Basin

U.S. Energy Development Corporation, an exploration and production firm that provides direct investments in energy, has announced an interest in a horizontal...

Closing prices for crude oil, gold and other commodities

The Associated PressBenchmark U.S. crude oil for October delivery fell 7 cents to $37.26 a barrel Monday. Brent crude oil for November...