Hostname: page-component-78c5997874-mlc7c Total loading time: 0 Render date: 2024-11-19T16:32:14.214Z Has data issue: false hasContentIssue false
  • English
  • Français

Dutch natural gas strategy: historic perspective and challenges ahead

Published online by Cambridge University Press:  24 March 2014

R. Weijermars  and
S.M. Luthi
R. Weijermars*
Affiliation:
Department of Geotechnology, Delft University of Technology, Stevinweg 1, 2628 CN Delft, the Netherlands
S.M. Luthi
Affiliation:
Department of Geotechnology, Delft University of Technology, Stevinweg 1, 2628 CN Delft, the Netherlands
*
*Email: [email protected]
Rights & Permissions [Opens in a new window]

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

We highlight a watershed in the natural gas legacy of the Netherlands: after 50 years of successful gas development, production output of conventional fields will decline from 2010 onwards. The projected decline in Dutch gas output will lead to a loss of future income for the State. In the past, E&P companies were prepared to compete for access to Dutch assets and lead in research as well as in the exploration for the development of conventional gas resources. Today, this cannot be assumed for the development of unconventional resources. It is not clear from our current state of knowledge whether the riskier unconventional gas resources in the Netherlands will be attractive for E&P companies. For example, are the financial risks for maturing potential unconventional resources into economic proved reserves acceptable to them? The US boom in unconventional gas production was preceded by government sponsored research programmes that stimulated the development of unconventional gas production technology. Decline in domestic gas production in the Netherlands therefore prompts for a dedicated upstream gas research programme. This will help to unlock future value from stranded conventional gas and unexplored unconventional gas resources. If such new gas resources can indeed be developed with the aid of research, undue loss of state income can be mitigated, which makes such a programme a compelling business case.

Keywords

Dutch gas reservesunconventional gas resourcesGroningen field
Type
Geo-perspective
Information
Netherlands Journal of Geosciences , Volume 90 , Issue 1 , August 2011 , pp. 3 - 14
Copyright
Copyright © Stichting Netherlands Journal of Geosciences 2011

References

ARI, 2007. Nature an Importance of Technology Progress for Unconventional Gas. (Reeves, S.R., et al.) OGJ Unconventional Gas Article #4 Final. 07 24, 2007; 14 pp.Google Scholar
Bernstein, , 2010. Bernstein Commodities & Power: What to Watch – A timeline of European Unconventional Natural Gas drilling. Clint, Oswald et al. Bernstein Research, 07 23, 2010; 7 pp.Google Scholar
BGR, 2009. Energy Resources 2009. Reserves, Resources, Availability. Crude Oil, Natural Gas, Coal, Nuclear Fuels, Geothermal Energy. Bundesanstalt fuer Geowissenschaften und Rohstoffe, 112 pp.Google Scholar
Breunesse, J.N., 2006. The Netherlands: A case of optimisation of recovery and opportunities for re-use of natural gas assets. 23rd World Gas Conference, Amsterdam.Google Scholar
Breunesse, J.N. & Rispens, F.B., 1996. Natural gas in the Netherlands: Exploration and development in historic and future perspective. In: Rondeel, H.E., Batjes, D.A.J. & Nieuwenhuijs, W.M. (eds): Geology of Gas and Oil under the Netherlands, Kluwer, Dordrecht: 19–30.Google Scholar
Breunesse, J.N., Mijnhoff, H. & Lutgert, J., 2005. The life cycle of the Netherlands' natural gas exploration: 40 years after Groningen, where are we now? In: Dore, A.G., and Vining, B.A. (eds): Petroleum Geology: North-West Europe and Global Proceedings of the 6th Petroleum Geology Conference, Geol. Soc. London: 69–75.Google Scholar
Corbin, B., 2010. Shale Gas Development in the United States. Director for Oil and Gas Global Security and Supply, Office of Oil and Natural Gas, US Department of Energy. 06 22, 2010.Google Scholar
Correlje, A., Van der Linde, C. & Westerwoudt, T., 2003. Natural gas in the Netherlands. From cooperation to competition? Oranje-Nassau Groep, 240 pp.Google Scholar
Crouch, S.V., Baumgardtner, W.E.L., Houllebreghs, E.J.M. & Walzebuck, J.P., 1996. Development of a tight gas reservoir by a multiple fracced horizontal well. In: Rondeel, H.E., Batjes, D.A.J. & Nieuwenhuijs, W.M. (eds): Geology of Gas and Oil under the Netherlands, Kluwer, Dordrecht: 93–102.CrossRefGoogle Scholar
CRS Report, 2009. Unconventional Gas Shales: Development, Technology, and Policy Issues. US Congressional Research service 7-1700, R40894. Team coordinator: A. Andrews, 49 pp.Google Scholar
CSIRO, 2010. Shale Gas Program. Flyer, 2 pp. See: http;//www.csiro.au.Google Scholar
De Jager, J. & Geluk, M.C., 2007. Petroleum Geology. In: Geology of the Netherlands, Wong, Th.E., Batjes, D.A.J. & De Jager, J. (eds.): Royal Netherlands Academy of Arts and Sciences: 241–264.Google Scholar
DOE, 2009. Modern Shale Gas Development in the Unites States: A Primer. US Department of Energy, Office of Fossil Energy. National Energy Technology Laboratory, 96 pp.Google Scholar
EBN, 2010. Focus on Dutch Gas. Energie Beheer Nederland.Google Scholar
EDGaR, , 2010. The largest natural gas research project in Europe. EDI Quarterly, vol. 2(3), 09: 1–16.Google Scholar
Engelder, T. & Lash, G.G., 2008. Marcellus Shale Play's Vast Resource Potential Creating a Stir in Appalachia. The American Oil & Gas Reporter, 05 2008, 7 pp.Google Scholar
Gash, , 2009. Gas Shales in Europe. An industry project. GeoForschungsZentrum Potsdam, Germany, brochure, 9 pp.Google Scholar
Gasunie, , 1998. Holland and its natural gas. Gasunie Communicatie, 36 pp.Google Scholar
Geny, F., 2010. Can Unconventional Gas be a Game Changer in European Markets? Oxford Institute for Energy Studies, Natural Gas Series 46, 120 pp.Google Scholar
Herber, R. & De Jager, J., 2010. Oil and Gas in the Netherlands – Is there a future? Geologie en Mijnbouw / Netherlands Journal of Geosciences, 89(2): 91–107.CrossRefGoogle Scholar
Hoegselius, P., Kaijser, A. & Aberg, A., 2010. Natural gas in Coldwar Europe: The making of a Critical Transcontinental Infrastructure. Eurocrat Volume.Google Scholar
Holditch, S.A., 2003. The increasing role of unconventional reservoirs in the future of the oil and gas business. Journal of Petroleum Technology, 11 2003: 34–37 & 79.Google Scholar
OGJ, 2009. Netherland Groningen field to produce gas for another 50 years. Oil & Gas Journal, 2009, Vol. 107, Issue 24.Google Scholar
OECD/IEA, 2000. The Netherlands 2000 review. International Energy Agency, 118 pp.Google Scholar
OECD/IEA, 2010a. Key World Energy Statistics. International Energy Agency, 78 pp.Google Scholar
OECD/IEA, 2010b. Natural Gas Information 2010. International Energy Agency, 594 pp.Google Scholar
Kielich, W., 1988. Subterranean Commonwealth: 25 years Gasunie and natural gas. Nederlandse Gasunie. 175 pp.Google Scholar
Knaap, W.A. & Coenen, M.J., 1987. Exploration for oil and natural gas. In: Visser, W.A., Zonneveld, J.I.S. & Van Loon, A.J. (eds): Seventy-five years of geology and mining in the Netherlands (1912-1987). Royal Geological and Mining Society of the Netherlands, Den Haag: 207–242.Google Scholar
Köper, N., 2003. Tegenpolen. De liberalisering van de Nederlandse energiemarkt. Het Spectrum, Utrecht, 160 pp.Google Scholar
Köper, N., 2008. Hoogspanning – Macht en onmacht in het Nederlandse energie beleid. Business Contact, Amsterdam, 236 pp.Google Scholar
Lagraaij, J.A.C. & Verbong, G.P.J., 1999. Different visions of power. The introduction of Nuclear Power in the Netherlands, 1955-1970. Centaurus 40: 37–63.Google Scholar
McCredie, C. & Weijermars, R., 2011. Gas Trading – The Rising Power of Gas Traders. Petroleum Review, Vol. 65, No. 773, (06 Issue): 18–20.Google Scholar
MEZ, 2010. Netherlands Oil & Gas Platform. Delfstoffen en aardwarmte in Nederland. Jaarverslag 2009. Ministerie van Economische Zaken, Directoraat voor Energie en Telecom, 154 pp.Google Scholar
MIT, 2010. The future of natural gas. An interdisciplinary MIT Study. Interim Report. MIT Energy Initiative MIT, 83 pp.Google Scholar
NAM, 2007. 60 Jaar NAM. Anniversary Volume. Nederlandsche Aardolie Maatschappij B.V., 108 pp.Google Scholar
Navigant, , 2008. North American Natural Gas Supply Assessment. Prepared for American Clean Skies Foundation. Navigant Consulting, 89 pp.Google Scholar
NPC, 2007. Unconventional Gas Reservoirs – Tight Gas, Coal Seams, and Shales. National Petroleum Council. Unconventional Gas Subgroup of the Technology Task Group of the NPC Committee on Global Oil and Gas. Team Leader S.A. Holditch, 52 pp.Google Scholar
ORLEN, 2010. Shale Gas. Basic Information. Polski Koncern Naftowy ORLEN, 75 pp.Google Scholar
PGC, 2009. Potential Gas Committee 2008 Report. Potential supply of natural gas in the United States (December 31, 2008). Potential Gas Agency. Colorado School of Mines. Golden.Google Scholar
PTAC, 2006. Filling the Gap. Unconventional Gas Technology Roadmap. 06 2006. Petroleum Technology Alliance Canada, 58 pp.Google Scholar
Reeves, S.R., Koperna, G.J. & Kuuskraa, V.A., 2007. Nature and Importance of Technology Progress for Unconventional Gas. Advanced Resources International, Inc. White Paper, Unconventional Gas Series, 07, 2007.Google Scholar
Roels, H.J.M., 2001. Groningen field, past, present and future. Geol. & Mijnbouw/Netherlands Journal of Geosciences, 80(1): 12–14.Google Scholar
Scheffers, B., Godderij, R., De Haan, H. & Van Hulten, F., 2010. Unconventional gas in the Netherlands. Including results from TNO study ‘Inventory non-conventional gas’ (2009). SPE NL Presentation, 8 02 2010.Google Scholar
Schenk, J., 2009. Groningen gasveld vijftig jaar. Boom, 220 pp.Google Scholar
Stewart, D. & Madsen, E., 2007. The Texan and Dutch Gas. Kicking off the European Energy Revolution. Trafford Publishing, Bloomington, 212 pp.Google Scholar
TNO, 2009. Inventory of non-conventional gas. TNO Report (Muntendam-Bos, A.G., et al.) TNO-034-UT.2009-00774/b, 188 pp.Google Scholar
Van Hulten, F.F.N., 2006. Reservoir quality distribution as tool for better exploration prospect evaluation and estimation of the resource base in the Netherlands. In: Van Hulten, F.F.N. & Lutgert, J.E. (comp.). Tight gas fields in the Netherlands, workshop EBN-TNO, September 19, Utrecht (the Netherlands), 13 p.Google Scholar
Weijermars, R., 2010a. Value Chain Analysis of the Natural Gas Industry – Lessons from the US Regulatory Success and opportunities for Europe. Journal of Natural Gas Science and Engineering 2: 86–104.Google Scholar
Weijermars, R., 2010b. Why untenable US natural gas boom may soon need well-head price-floor regulation for industry survival. First Break, vol. 28 (09): 33–38.Google Scholar
Weijermars, R., 2011a. Building Corporate IQ: Moving the Energy Business from Smart to Genius: Executive Guide to preventing Costly Crises. Springer, (London), ISBN 978-0-85729-678-8, 336 pp.Google Scholar
Weijermars, R., 2011b. Price scenarios may alter gas-to-oil strategy for US unconventionals. Oil & Gas Journal 109(1): 74–81.Google Scholar
Weijermars, R. & McCredie, C., 2011. Gas Pricing – Lifting the Price. Petroleum Review, vol. 65, (No. 768, 03 issue): 14–17.Google Scholar
Weijermars, R. & Madsen, E., 2011. Can the Dutch Gas Bubble defy King Hubbert's Peak? First Break 29 (no. 4, 04 issue): 35–39.Google Scholar
Weijermars, R. & Watson, S., 2011. Can Technology R&D close the Unconventional Gas Performance Gap? First Break 29 (no. 5, 05 issue): 89–93.Google Scholar
Weijermars, R., Drijkoningen, G., Heimovaara, T.J., Rudolph, S., Weltje, G.J. & Wolf, K.H.A.A., 2011. Unconventional gas research initiative for clean energy transition in Europe, Journal of Natural Gas Science and Engineering 3: 402–412 (doi:10.1016/j.jngse.2011.04.002).Google Scholar
Wierts, P. J. & Schotten, G., 2008. De Nederlandse gasbaten en begrotingsbeleid: theorie versus praktijk. DNB Studies 6 (no. 5), Amsterdam: De Nederlandsche Bank.Google Scholar
Wierts, P.J. & Schotten, G., 2009. Gasbaten en vermogensbehoud. Hoofdstuk 10 in Jaarboek Overheidsfinancien 2009: 199–213.Google Scholar
Wong, Th.E., Batjes, D.A.J. & De Jager, J., 2007. Geology of the Netherlands. Royal Netherlands Academy of Arts & Science, 264 pp.Google Scholar