Earthquakes Cause Giant Natural Gas Field To Cut Production By 44%

Tyler Durden's picture

Submitted by Dave Forest via OilPrice.com,

Europe just lost a big chunk of production from one of its most critical natural gas fields, and not for any of the usual reasons — technical problems, pipeline constraints, or terrorist disruptions.

These cuts are due to earthquakes.

The development came at the Groningen natgas field in the Netherlands. The largest producing field in Western Europe — and one of the world’s top 10 gas fields by size.

Groningen’s massive size has been an issue lately though, with drawdown from the field having caused seismic events in the areas above and surrounding the field.

Such concerns prompted the Dutch government to take action Friday. With the country’s Economics Minister Henk Kamp saying that regulators will reduce Groningen’s permitted output by 11.1 percent — to 24 billion cubic meters per year (850 billion cubic feet), down from a previous allowance of 27 billion cubic meters.

Minister Kamp also said that the reduced production quota will stay in effect for the next five years. This means that Europe has lost a significant slice of its go-to production for the foreseeable future.

This latest production cut continues a dramatic slide in Groningen’s output over the past 18 months. With the Dutch government deciding in early 2015 to cut production from 42.5 billion cubic feet annually to 39 billion cubic feet — and then further reducing the quota to 33 billion cubic feet just a few months later.

The further cuts announced Friday come after high-level Dutch regulatory body the Council of State ordered the government to take more action in protecting the public. With Minister Kamp saying that the new production cap would “reduce safety risks to Groningen’s residents and damage to buildings.”

The Minister did say that production could be increased above the quota in the event of exceptionally cold weather or other instances of strict necessity. But overall it appears that Groningen’s output is going to be 44 percent lower than it was less than two years ago — which could put upward pressure on prices in the European market.

That could have a number of knock-on effects. Including attracting more liquefied natural gas (LNG) to Europe — with countries here having a lot of under-used import capacity right now. Watch for the effects of the Dutch shut-in on prices — and structural changes in this market as a result.

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N0TaREALmerican's picture
N0TaREALmerican (not verified) Jun 27, 2016 3:02 PM

 

Earthquakes in the Netherlands?   Dikes don't like earthquakes, do they?

WTFUD's picture

No, Dick Van Dyke's having kittens.

Manthong's picture

Seeing as that whole area is below sea level, maybe they should be a tad worried that they are going to end up with a giant sink hole that could soon be an inland sea.

 

froze25's picture

Wow, the BREXIT has shaken the foundations of the Earth!.

WTFUD's picture

Yes, One Down ( EU ) 2 to go, City of London and NATO.

Oracle 911's picture

The Russians opening champaign bottles. More demand for their natgas.

ThirdWorldDude's picture

Now the Dutch can tap Brussels. I've heard they've got loads of gas over there...

BarkingCat's picture

European Great Salt Lake.

 

 

rough_trader's picture
rough_trader (not verified) N0TaREALmerican Jun 27, 2016 3:23 PM

My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.earnmore9.com

froze25's picture

As I have said, you can make $19,500 simply protesting Trump at his rallies. You get to break stuff, hurt people and throw around vulgarities. Best part is they will blame the people you do that to. You get off Scott free!

Joe Davola's picture

So that's the career path for former WoW "Rag didn't drop my T2 pants" nerd raging teens.

Bankster Kibble's picture

Here in Sacramento we let the skinheads and anarchists out to play in the noonday sun and let the cameras roll . . .

ZD1's picture

The news media is now describing the 25 people from the Traditonalist Worker Party as being "white nationalists"instead of skinheads or neo-Nazis.

 

The cameras weren't rolling because the 400 anarchist viglantes with Guy Fawkes masks who violently stopped the rally also stopped the news media from filming them.

1980XLS's picture

Your sister's friend  is a fucking whore.

nibiru's picture

It is ALL because of BREXIT!

 

Watch out - soon Martin Schulz will start dumping it on British!

WTFUD's picture

Russia's waiting in the wings to pick up any slack.

Manthong's picture

I was thinking that too, but I was Russia I would want sanctions lifted for being so accommodative.

 

WTFUD's picture

FoSure! In the meantime Vlad's sauntering around the Globe signing deals while the EU Leaders flounder over the fallout from Brexit.

NATO have put further military exercises around Russia's borders on hold for the time being. Vlad must be mighty relieved that the Balkans have taken their foot of his neck. s/c

Urban Roman's picture

Oh. Holland.

I thought you were going to say Aliso Canyon was leaking 44% less...

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Jun 27, 2016 3:08 PM

Completely unrelated to fracking I'm sure.  

NotApplicable's picture

Hell, just the massive depletion of gas (and it's resulting pressure) could possibly be enough to allow the plates to slip free enough to rearrange the entire geology of the area.

Now, I wonder where that gas went?

cougar_w's picture

And people will still claim that human activity can have no effect on the Earth.

We utterly destroy everything we touch. The seas, the skies, the soil, the forests, the mountains and the plains. Everything we see we devour. Everything we touch we bring down. Even the roots of Earth we shake and rattle.

Nature is gonna get sick of our stupid shit one of these days, and kill us so hard not even the cockroaches will remember us.

Rainman's picture

correct ... humans have even had the audacity to leave 2,000 tons of litter in outer space.

shovelhead's picture

Meh.

With any luck most of it will burn up before it hits your house.

Unless you live in a Spacestation. Then it's a bit more tricky.

NotApplicable's picture

I like to believe that it will serve us as a shield to protect us from the Thetans. Or perhaps the Greys?

Bob's picture

The Thetans, you say. 

Take a good look at the ZH logo . . .

Possible Impact's picture

Recommend you touch yourself...

shovelhead's picture

But until then, we're gonna party like it's 1999.

And the other simians are waiting for their turn, too.

Kirk2NCC1701's picture

We're not alone in the Blame Game.  Modern Archaeology and Geology suggests that the alleged OT/Biblical "Plagues of Egypt" were caused by the explosion of a super-volcano that wiped out the Minotaur civilization on the Greek island of Santorini.  All that's left is the crater ring, and... Greek tourism. Hopa!

So, aside from blaming bitchy Mother Nature, we can also blame Yahweh.  

Allegedly, as an all-knowing, all-powerful God, someone should have told him that he could've done all these things by simply having some 'Angels' show up at Pharaohs palace, and sort him out.  Less drama, less collateral damage (innocent insects, fish, livestock and people killed), and much faster.  

So... not a 'smart' God then.  More like on the Thor-level of godly IQ, Id say. Even Loki could have outsmarted Yahweh, by the sounds of it.

o r c k's picture

Sure, he was a moron, but he'll be best known for his angry habit of genocide, mass rape, slavery, pedophilia, and torture-murder. Gee, I wonder why he mirrors humanity so perfectly? 

CosmoJoe's picture

Nature dosn't give a fuck.  You are a complete asshat if you think humans have the power you think we do over the planet.  We could fire off all the nukes we have and wipe out the human race; the planet would bounce back just fine.

FireBrander's picture

Free Market Capitalism will clean up all of these problems...oh, no, wait, ooops...I'm all mixed up...Free Market Capitalism PROFITED from the creation of these messes..the cleanup costs will require Socialism....

To each, acccording to his Corporate Capitalist Connections; from everyone else to clean up the mess.

Nightjar's picture

(after it had been steadily increased to levels known to cause quakes in years ahead.)

Shed Boy's picture

I see...so thats why my UGAZ stock is up 6% today. Everything else is down drastically...including my miners. Good, informative article. Thanks Tyler.

viator's picture

Must be all that fracking..

WTFUD's picture

This is a direct attack on the EU by Vladimir Putin who is forcing their hand to buy Gaz in Gold or Rouble's. I don't know why MSM are not all over this! s/c Just like to ask the Dutch if they've received any feedback on the Malaysian Airline MH17's Black Boxes they handed over to GCHQ almost 2 years ago?

shovelhead's picture

Too bad everybody in Euroland has got a long face for Putin. He has plenty of gas that's a lot cheaper than LNG.

Maybe they'll turn on the smiles when their teeth start to chatter.

silverer's picture

Boy, those Russians have some awesome tunneling equipment.

WTFUD's picture

Not to mention the undetectable submarines that weren't actually there.

LA_Goldbug's picture

Seismic ? Or maybe it really is just natural depletion ?  No sense panicking the sheep :-)

 

Do they still have the number to Vladimir ?

WTFUD's picture

Apparently he's in his Dacha on the Black Sea with a do not disturb sign on the door.

SmittyinLA's picture

"Protecting the public"....... or joining Russia to crimp supply?

We know the Russians funded the West's "environmental movement", they would prefer the "Saudi Arabia of coal" be shut down "voluntarily", ChIna, India and Venezuela agree.

Natural gas is just "invisible coal" and has to be shut down too.

Bankster Kibble's picture

So Russia is 'weaponizing' environmentalism?

Zero-Hegemon's picture

Brrr! I can feel the winter chill setting in from here

BarkingCat's picture

Good time for Russia to start some pipeline maintenance. 

It is a shame that while that work is done the flow of natural gas has to be reduced.

JimmyRainbow's picture

60% of netherland area is max 1m above sea level.

pumping out the gas underneath may have some existential consequences.