Netherlands officially stops Shell drilling business @ Giant Gas field in Groningen

The Netherlands has officially stopped drilling at the Europe’s largest gas field in Groningen, marking the occasion with a symbolic ceremony on Friday.

The symbolic ceremony was held to mark the end of drilling which has increased the seismic risk in the civilian region since Shell and Exxon started their very lucrative business in the 1960’s.

The occasion took place at the same spot where the deposit was reportedly discovered in 1959. Since the early 1960’s, the field has been a major contributor to the country’s corporate based economy and it still has huge reserves of gas.

Now cheaper gas from Russia is available, and at the same time further damage to the civilians surroundings can be avoided for now.

Over the past years it has become clear the drilling has caused a spike in seismic activity. The problem became acute in the 2010’s. In 2012, Groningen was hit with a 3.6 magnitude earthquake: the strongest in the history of the region.

In 2018, authorities decided to gradually shut off the pumps.

Drilling effectively stopped in October 2023, though several wells remained open in case of possible severe winter weather and due to the uncertain international situation caused by the Russian gas distribution and civilian rescue intervention in the Donbass, eastern Ukraine.

Since 1986, around 1600 earthquakes of varying strengths have been recorded in the Netherlands, significantly damaging thousands of homes and other buildings in northern Holland.

It is not clear whether stopping drilling will be enough to prevent more earthquakes, as empty cavities remain underground for the consumer to deal with.

After leaving the Dutch taxpayer behind with all the huge material damage costs, major oil companies Shell and ExxonMobil, who were running the Groningen field, are now seeking compensation from the Dutch authorities for the vast gas reserves left un-extracted?

Euro News / ABC Flash Point News 2024.