Natural Resources and Geothermal Energy in the Netherlands
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Ministry of Economic Affairs and Climate Policy Natural resources and geothermal energy in the Netherlands Annual review 2018 NATURAL RESOURCES AND GEOTHERMAL ENERGY IN THE NETHERLANDS 2018 Annual review An overview of exploration, production and subsurface storage. Preface As well as reporting on the exploration and production of hydrocarbons, rock salt and geothermal energy in the Netherlands, this annual review entitled ‘Natural Resources and Geothermal Energy in the Netherlands’ also reports on the subsurface storage of natural gas, oil, nitrogen, brine and CO2. In so doing it covers all the exploration, production and storage activities in onshore Netherlands and in the Dutch part of the continental shelf that fall under the Mining Act. The first section of this annual review deals with developments during the year 2018. The second part of this report comprises annexes giving an overview of the situation as at 1 January 2019, and the developments during preceding decades. Chapters 1 and 2 review the changes in the estimates of natural gas and oil resources in 2018 and the resulting situation as at 1 January 2019. These chapters also present a prognosis for the gas (small fields) and oil production for the next 25 years. The remaining volumes of natural gas and oil are reported in accordance with the Petroleum Resource Management System (PRMS). For the Groningen gas field production profiles are reported conform the letter of the Minister of Economic Affairs and Climate Policy to the House of Representatives (DGETM-EI / 18057375, 29 March 2018). Chapter 3 shows an overview of the produced natural gas, oil and condensate. Chapter 4 reports on the developments regarding subsurface storage. Chapters 5, 6 and 7 give an overview of the developments regarding geothermal energy, rock salt and coal. Chapters 8, 9 and 10 contain information on developments relating to offshore and onshore licensing and company changes. Chapters 11, 12 and 13 report on seismic surveys, drilling activities, the placing of new platforms and the laying of pipelines. This report has been compiled by TNO, at the request of the Directorate General of Climate and Energy of the Dutch Ministry of Economic Affairs and Climate Policy. It includes data that the Minister of Economic Affairs and Climate Policy is required to supply to both Chambers of the Dutch Parliament in accordance with article 125 of the Mining Act. The digital version of this review can be found on: www.nlog.nl. The volumes of gas and oil have been expressed in accordance with article 11.3.1. of the Mining Regulations: gas in normal cubic metres and oil (a liquid) in standard cubic metres. Facts and figures from this annual review may be reproduced only if the source is fully acknowledged. No rights can be derived from this report. The Hague, July 2019. 2 Contents Preface ............................................................................................................................................................. 2 Key figures ....................................................................................................................................................... 7 Natural gas and oil resources ..........................................................................................................................7 Natural gas production ....................................................................................................................................7 Oil production ..................................................................................................................................................7 Subsurface storage ..........................................................................................................................................7 Geothermal energy..........................................................................................................................................7 Rock salt ..........................................................................................................................................................7 Coal ..................................................................................................................................................................7 Hydrocarbon licences ......................................................................................................................................7 Geothermal licences ........................................................................................................................................8 Wells ................................................................................................................................................................8 1. Natural gas resources and future domestic production ........................................................................... 9 1.1 Introduction ............................................................................................................................................9 Figures .............................................................................................................................................................9 Petroleum Resource Management System (PRMS) ........................................................................................9 1.2 Resources ..............................................................................................................................................11 1.3 Resource estimates ...............................................................................................................................12 Gas resources as at 1 January 2019 ...............................................................................................................12 Restriction to conventional accumulations of gas.........................................................................................12 Reserves and contingent resources ...............................................................................................................12 Re-evaluation ................................................................................................................................................13 1.4 Exploration potential ............................................................................................................................16 Geological units and prospects .....................................................................................................................16 Gas portfolio characteristics ..........................................................................................................................16 Exploration potential .....................................................................................................................................17 Economic analysis based on Expected Monetary Value................................................................................18 Economic analysis based on Risked Value to Investment Ratio ....................................................................18 Exploration potential trend/history ..............................................................................................................19 1.5 Incentives ..............................................................................................................................................20 1.6 Domestic supplies of natural gas ..........................................................................................................21 Groningen gas field ........................................................................................................................................21 Small fields .....................................................................................................................................................22 2. Oil resources ........................................................................................................................................... 26 Oil resources as at 1 January 2019 ................................................................................................................26 Revised estimates of the oil resources compared to 1 January 2018 ...........................................................27 3 3. Production of gas, oil and condensate ................................................................................................... 29 3.1 Production in 2018, Netherlands territory ...........................................................................................30 Production from small fields per stratigraphic reservoir, Netherlands territory ..........................................31 3.2 Gas production in 2018, Netherlands continental shelf .......................................................................34 Production from small fields per stratigraphic reservoir, continental shelf ..................................................35 3.3 Oil and condensate production in 2018 ...............................................................................................37 4. Subsurface storage ................................................................................................................................. 38 4.1 Preface subsurface storage ..................................................................................................................38 4.2 Subsurface storage in 2018 ..................................................................................................................39