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Netherlands

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The Netherlands has approximately 26 trillion cubic feet (tcf) of technically recoverable shale gas reserves, according to the U.S. Energy Information Administration.1

NewNetherlandsMapSource: U.S. Energy Information Administration: Technically Recoverable Shale Oil and Shale Gas Resources: An Assessment of 137 Shale Formations in 41 Countries Outside the United States (June 2013): http://www.eia.gov/analysis/studies/worldshalegas/pdf/fullreport.pdf

Two sizeable basins overlap portions of the country. The West Netherlands basin is located in the southwestern portion of the country and extends offshore.2 The North German basin (the Posidonia shales) straddles the border of Germany and Netherlands.3Some commentators have questioned the economic viability of shale gas production in the country, because Dutch shales are much deeper than those in the United States (approximately three to four kilometers below the surface).4

Once “basically self-sufficient” in natural gas produced through conventional means5, the Netherlands experienced a 42 percent decrease in gas output from 2013 to 2017.6 Previously this meant a key driver behind shale gas development in many European countries — namely, energy security (especially lessening dependence on Russian gas) — was not as strong a driver in the Netherlands as elsewhere.7 But while the Netherlands’ energy import dependency remains low, decreasing production may cause the Netherlands to become a net importer of gas by 2025.8

After limited exploration activities, there is currently a moratorium on hydraulic fracturing in the Netherlands through 2020.9
Statutory and Regulatory Framework

The Dutch government initially granted concessions for shale gas exploration in four different locations in 2009.10 There had been considerable optimism at the prospects for shale development after the Dutch Energy Council (the Dutch government’s senior adviser on energy matters) in February 2011 published a series of policy recommendations to stimulate development of the industry.11 The recommendations indicated strong support for shale gas development, and a spokesman for the Dutch Ministry of Economic Affairs, Agriculture and Innovation (MEA) later confirmed that the Dutch government supported the Dutch Energy Council’s recommendations.12

On July 10, 2015, the Dutch Minister of Economic Affairs introduced a moratorium on shale gas drilling until 2020.13 The government announced that no new commercial exploration or extraction of shale gas would take place, and existing shale gas exploration licenses would not be renewed while the moratorium is in effect.14

In February 2018, the Minister of Economic Affairs confirmed that the Dutch government will continue to deny permits for shale gas exploration, stating to parliament that “shale gas is not an option in the Netherlands any more. We are not doing it. It is over and done with.”15 It remains to be seen whether the government’s position will change once the current moratorium on hydraulic fracturing activity expires in 2020.

Last updated September 2018.

1 U.S. ENERGY INFORMATION ADMINISTRATION: WORLD SHALE GAS RESOURCES: AN INITIAL ASSESSMENT OF 14 REGIONS OUTSIDE THE UNITED STATES (June 2013), www.eia.gov/analysis/studies/worldshalegas/pdf/fullreport.pdf.

2Id.

3Id.

4Dutch decision to delay shale gas drilling brings mixed reactions, UNITED PRESS INT’L (Sept. 23, 2013), http://www.upi.com/Business_News/Energy-Industry/2013/09/23/Dutch-decision-to-delay-shale-gas-drilling-brings-mixed-reactions/95861379909040/.

5 Alexander Winning, Gas-rich Netherlands little help to Europe if Russia cuts supplies, REUTERS (April 2, 2014), http://uk.reuters.com/article/netherlands-gas-russia-idUKL5N0MU2TQ20140402.

6 Viktor Katona, The Abrupt Demise Of Dutch Gas, OIL PRICE (July 20, 2017), https://oilprice.com/Energy/Oil-Prices/The-Abrupt-Demise-Of-Dutch-Gas.html.

7See id.

8 EUROPEAN COMMISSION, COUNTRY REPORT THE NETHERLANDS 2017 (Feb. 22, 2017), https://ec.europa.eu/info/sites/info/files/2017-european-semester-country-report-netherlands-en.pdf

9Dutch government bans shale till 2020, SHALE GAS INT’L (July 13, 2015), http://www.shalegas.international/2015/07/13/dutch-government-bans-shale-till-2020/.

10 Marijke Bremmer, The shale gas debate in the Netherlands and the role of the independent Netherlands Commission for Environmental Assessment, NETHERLANDS COMMISSION FOR ENVIRONMENTAL ASSESSMENT (2015), http://api.commissiemer.nl/docs/mer/diversen/views-experiences2015_p4-7.pdf.

11 Karen Beckman, Dutch Energy Council embraces unconventional gas, EUROPEAN ENERGY REV. (Feb. 9, 2011), http://europeanenergyreview.com/site/pagina.php?id=2738.

12Id.

13 GOVERNMENT OF THE NETHERLANDS, NO EXTRACTION OF SHALE GAS DURING THE NEXT FIVE YEARS (July 10, 2015), https://www.government.nl/latest/news/2015/07/10/no-extraction-of-shale-gas-during-the-next-five-years.

14Id.

15Dutch minister confirms ban on drilling, shale gas ‘not an option,’ DUTCHNEWS.NL (Feb. 16, 2018), https://www.dutchnews.nl/news/2018/02/dutch-minister-confirms-ban-on-drilling-shale-gas-not-an-option/.

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