For decades, the Dutch gasfield known as the Groningen has been fueling profit for oil majors like Shell and ExxonMobil. However, this source of immense wealth has come at a cost – it has also been linked to a series of earthquakes that have damaged homes and caused numerous deaths over the years. The Netherlands is now evaluating its energy sources, but what goes on behind the scenes? In this blog post, we are going to explore how oil majors have profited from the Groningen gasfield and what it will take for them to truly be held accountable.
What is the Groningen gas field?
The Groningen gas field is a large natural gas field located in the northeastern Netherlands. The field was discovered in 1959 and has been in production since 1963. It is operated by NAM, a joint venture between Royal Dutch Shell and ExxonMobil.
The Groningen gas field is the largest source of natural gas in the Netherlands and provides about 10% of Europe’s total supply. The field has an estimated reserve of 3 trillion cubic feet (tcf) of natural gas.
In recent years, the Groningen gas field has been seismically active, causing a number of small earthquakes. In 2013, a magnitude 5.3 earthquake struck the village of Huizinge, damaging several hundred homes. The Dutch government has since ordered NAM to reduce its production from the Groningen field in order to minimize the risk of further earthquakes.
How did oil majors profit from the Groningen gas field?
In the early 1960s, a gas field was discovered in Groningen, Netherlands. The Groningen gas field is the largest natural gas field in Europe, and it has been supplying gas to the Netherlands and surrounding countries for decades. However, it has also been responsible for a series of earthquakes in the region.
In 2013, the Dutch government ordered a review of the Groningen gas field after a series of earthquakes. The review found that the oil majors who operated the field had known about the risks of earthquakes for years, but had not taken adequate steps to prevent them. As a result of the review, the Dutch government ordered the oil majors to pay €1 billion (US$1.1 billion) in compensation to people affected by the earthquakes.
The oil majors responded by arguing that they had acted responsibly and that the earthquakes were an unpredictable risk. They also pointed out that they had already paid €100 million (US$110 million) in compensation to people affected by the earthquakes. In 2014, after mediation by The Hague District Court, the oil majors agreed to pay an additional €600 million (US$660 million) in compensation.
So how did these oil majors profit from the Groningen gas field? Firstly, they were able to extract large quantities of natural gas from the field over many years. This generated significant revenues for them. Secondly, they were able to delay taking action on earthquake risks, which saved them money in the short-term. And finally
Who are the victims of the earthquakes caused by the Groningen gas field?
The earthquakes caused by the Groningen gas field have had a devastating effect on the people of the Netherlands. Over 3,000 homes have been damaged, and many people have been left homeless. The Dutch government has estimated that the repairs will cost billions of euros. The people who have been most affected by the earthquakes are those who live in the areas where the earthquakes have been most intense.
What has been done to stop the earthquakes?
In 2013, the Dutch government shut down the gas field that had been causing earthquakes in the country. The move was taken after years of research showed that the earthquakes were indeed caused by the gas extraction process. However, this did not stop the oil majors from profiting from the situation.
In 2014, a report commissioned by the Dutch government found that ExxonMobil and Royal Dutch Shell had known about the risks of earthquake-inducing gas extraction for years, but had done nothing to stop it. In fact, they had even encouraged it.
The report found that the two oil majors knew that their activities were causing earthquakes, but they continued to extract gas anyway. They did this because they knew that the Dutch government would eventually have to shut down the gas field, and they wanted to profit from it while they could.
Now, the Dutch government is suing ExxonMobil and Royal Dutch Shell for damages. It is estimated that the two oil majors could be on the hook for billions of euros in damages.
What needs to be done in the future?
Many experts believe that the Groningen gas field will need to be shut down in order to prevent further earthquakes. Some have suggested that this could happen as soon as 2020. The Dutch government has set up a committee to investigate the possibility of closing the gas field, and a final decision is expected to be made in the coming months.
In the meantime, there are several actions that need to be taken in order to mitigate the risk of earthquakes. The first is to reduce the production of gas from the Groningen field. This can be done by reducing the amount of gas that is extracted each day, or by shutting down production entirely for a period of time. Additionally, steps need to be taken to strengthen buildings and infrastructure in areas at risk of damage from earthquakes. Finally, it is important to continue monitoring the situation closely and make changes as necessary in order to protect people and property from harm.
Conclusion
The Netherlands’ gasfield has proven to be a source of great wealth and controversy. While oil majors have profited immensely from the Dutch gasfield, it has also caused significant seismic activity, which led to its closure in 2013. Through this article, we have explored how the oil companies involved were able to benefit from the gasfield while at the same time causing damage that is still felt by many people today. It serves as an important reminder of the power of corporations and their potential for causing harm when driven solely by greed and profit motives.
