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Page added on January 18, 2014
Dutch to reduce natural gas production due to earthquakes
The Dutch Cabinet has decided to reduce the amount of gas produced from fields that lie under the country’s northernmost province by 6 percent, as the mining has caused earthquakes and damaged houses in the region.
Prime Minister Mark Rutte announced the decision Friday. He said that government-commissioned studies have shown beyond a doubt that the gas production did cause the earthquakes — long a topic of debate — which have been going on for years. Although rarely registering more than 3 on the Richter scale, the quakes have led to “material and emotional” damages for some residents in the province of Groningen, Rutte said.
In the small town of Loppersum, where damages have been worst, Economic Affairs Minister Henk Kamp traveled personally to city hall to deliver the news that production there would be cut by 80 percent.
Tensions were high among protesters before details of the plan were revealed. Two men drove tractors through a set of temporary police gates as Kamp began speaking. That allowed several dozen protesters to approach the building, where they banged on windows, honked air horns and scuffled with police. There were no arrests.
The Cabinet has promised to pay 1.2 billion euros ($1.6 billion) in damages over the coming five years. Additionally, the country will cut annual production in Groningen by about 6 percent, to 40 billion cubic meters of gas per year. Last year production levels and gas prices were higher than normal, and the government earned more than 12 billion euros from gas exploitation.
The costs and loss of revenue are painful for Rutte’s Cabinet, which has been struggling to bring the government’s budget deficit under 3 percent. After several rounds of cost-cutting and tax hikes, and several consecutive recessions, there is little enthusiasm among the Dutch for further austerity measures.
However, the costs from the change of policy in Groningen is unlikely to put the government in acute danger: Most economists are forecasting a return to growth this year, and cutting gas production and compensating Groningen for damages should not cost more than 1 percent of the government’s annual budget.
11 Comments on "Dutch to reduce natural gas production due to earthquakes"
J-Gav on Sat, 18th Jan 2014 1:28 pm
I would too if I lived in a country that’s to a large extent below sea level.
rockman on Sat, 18th Jan 2014 4:22 pm
I’ll try to research later. There have been some rare cases in the US of such documented reactions to subsurface activities. But $1.6 billion in damages? That’s a tad difficult to believe without seeing the pictures.
surf on Sat, 18th Jan 2014 6:41 pm
“rarely registering more than 3 on the Richter scale, the quakes have led to “material and emotional” damages for some residents in the province of Groningen, Rutte said.”
They need to strengthen there building codes. magnitude 3 earthquakes happen all the time in california and they don’t cause damage. Most Magnitude 5 earthquakes in california also do not cause any damage. California building codes don’t add a lot to the cost of construction yet allow a home to stay up through very strong earthquakes. The building may be damaged but it will not collapse or kill people inside.
If they ever get a natural magnitude 6 there are going to be a lot of injured and killed people from building collapes.
GregT on Sat, 18th Jan 2014 8:19 pm
When California gets it’s next 7.8 or greater magnitude quake, there’s going to be a lot of injured and killed people there as well. 11 years from now, 5 months from now, next Thursday morning, or at 2:17 this afternoon, it will happen eventually. It is only a matter of time.
rockman on Sun, 19th Jan 2014 12:54 am
Surf -I scanned many articles and the only damage shown was masonry cracks. No collapsed buildings, bridges or busted water pipes. But it does appear the shaking is related to the field production. Details below. Not that I would want to live with such quakes it’s not life damaging let alone life threatening. Not like for those maniacs that choose to live in CA. LOL.
Details:http://www.geoexpro.com/article/The_Groningen_Gas_Field/bf349ab1.aspx
Found one interesting statement: the field has been producing for 50 years but the earth quake count only became significant since 2011. I suspect this may be related to the field going on compression. See those details below.
The link shows that the reservoirs are pressure depletion drive as opposed to water drive. In water drive the reservoir pressures decreases very little. But the reserve pressure has decreased so much in this field that it too low to flow out the wells against the pipeline pressure. They didn’t provide pressures but it has to be very low. In fact, the had to put the wells on compression a few years ago. Giant turbine ramp up the pressures to above pipeline pressure. Guessing that’s around 1,000 psi..or a little less. In fact even though the field still has huge reserves left it doesn’t flow enough to meet high season demand. So during the low demand period they inject the production into two NG storage fields.
I did find a reference to the field containing a large number of faults. Dropping the reservoir pressures so low would alter the subsurface stress fields. That could easily activate some minor slippage on the faults. That could easily cause the swarms of low power quakes they have experienced.
But here’s the reality: this NG field is one of the 10 largest on the planet. A surprise to me. This it’s not only a major source of EU NG put also a very big source of revenue for the gov’t. Given those facts and that the quakes aren’t hurting anyone I can understand the gov’t compromise. At first paying $1.6 billion over 5 years seemed huge. It’s actually a pittance compared to the value of the production. They keep producing, even at a lower rate, creating a big revenue stream for the gov’t, a bit of energy security for the union and makes the locals some nice pocket change for what amounts mostly cosmetic damage. Just reading a bit of body language the locals seemed more pleased with the monetary settlement then they were upset about the shaking.
Makati1 on Sun, 19th Jan 2014 1:30 am
But, rockman, natural gas is not worth your life. It only takes one building to fall on you. Money us NOT everything. In fact, it will soon be nothing.
Greed is the driving force of the oil industry … get rich on the backs/blood of others is the capitalist religion. Hard work is not. Too bad. Capitalism is dying along with excess energy.
rockman on Sun, 19th Jan 2014 1:48 am
Makati – Have you gone of your meds again? LOL. Or you have not bothered to even read the basics of the story. No one has even gotten a splinter from the earth quakes let alone died.
Or are you just trying to make us laugh with an over the top made up hysterical rant?
Luck on Sun, 19th Jan 2014 11:02 pm
The Ministery of Economic Affaires in the Netherlands ignored for years the consultations of the Advisory Board on Mining to reduce in time gas drilling and exploration in the Dutch province Groningen. Last year several quakes exceeding 3.0 on Richter scale caused a lot of damage. And danger for the local people and the dike system.
Our minister Henk Kamp decided to reduce the gas volume to max. 42 Gm3 per year which was in fact the long term norm agreed upon. And he proposed to compensate the damage in Groningen with a fund amounting 1.5 G euro. By the way (Big Oil) Shell and Exxon allied in the dutch NAM did suck more than 53 Gm3 last year from the Groningen soil. Against the advices of the Advisory Board on Mining.
The point is that the Netherlands are addicted to the revenues of gas exploration in one of world’s biggest gas field (since discovery in 1959). To be used in a fund for some prestige project like High Speed Railway to Belgium, Freight Railway from Rotterdam to Germany (stops at German Border!) and to pay the salaries of a great deal of the governmental, province and municipal officials. And don’t forget the long term gas export contracts with Germany and other countries. When squeezing the gas valve the Netherlands revenues of 13 G euro anually will fall to some extent. And who will pay the price when this current Liberal – Social Democrat government will compensate this in new austerities??
Makati1 on Mon, 20th Jan 2014 1:27 am
Rock, there is always a first time for everything, and no, I don’t take any meds to go off of. I am lucky to be totally healthy at 69. Fraking is a disaster no matter where it happens. And, the price that we will pay for a few more years of BAU will be the death of the species … us.
rockman on Mon, 20th Jan 2014 3:10 am
Makati – Being a fellow old frat I should have mercy on you. But I’m sure you’re also a tough old bird like me and can handle it: you are freaking NUTS! LOL. For Dog’s sake read the article again: it has absolutely nothing to do with frac’ng. Unless you’re postulating that frac’ng in south Texas is causing earth quakes half way around the world.
I gave a rather valid explanation of how the NG production led to the MINOR seismic activity they’ve been experiencing. There are some reason to piss on frac’ng. This subject of this thread is definitely not one of them.
rockman on Mon, 20th Jan 2014 3:52 pm
I might add what I hope would be obvious but maybe some haven’t bothered to read the details. There is no drilling activity in the area. In fact, there’s been no drilling in this area for decades. The seismic activity is related to the NG production. So not only are wells not being drilled and frac’d but there’s no drilling activity at all.