Contribution to society 

Revenues 
From the start oil and gas production has contributed significantly to the Dutch standard of living. Every company that produces oil or gas from Dutch territory is obliged to pay a minimum of 50% of their profits from this work to the government. By means of the EBN (Netherlands Energy Management) the Dutch government also participates for 40% in all gas projects. In the case of oil projects participation is voluntary. Returns from the EBN are gas credits. All these sources of income together form the national gas credit. And because the gas price is linked directly to the international oil price, income varies strongly year on year.

Energy supply
The Netherlands annually produces some 75 billion m3 gas. Domestic consumption is around 45 billion m3. This means potential for export. Thanks to the national gas grid the gas can be delivered directly to Dutch households and companies but is also an important fuel for the generation of electricity. Because the output of CO2 is lower than in the case of coal-fired generating stations, this leads to an environmental - benefit when changing to gas..

Security of energy supply 
The production of gas in the Netherlands and the European Union is now slowly declining. Including Norwegian output the total production in Europe is high, some 50% of current consumption. The Netherlands also imports gas, even though national production is higher than domestic consumption. For the European Union the import of gas from other countries is becoming increasingly important. 

Because the largest gas reserves currently are in Russia and Iran, geopolitical factors play an important role. To reduce dependence on other suppliers and vulnerability to gas transport (for instance through the Ukraine), the Netherlands is making best efforts to expand the number of countries from which gas can be imported.  Importing liquid gas (LNG) for instance is diversifying gas imports. The new Nordstream pipeline runs directly from Russia to Germany. 

Industry and employment 
The discovery and production of oil and gas in the Netherlands  has stimulated investment and employment. Some 3,000 people work at Dutch oil and gas companies. A similar number work in supplier companies. An additional 10,000 work for contractors in the offshore sector. And naturally the discovery of oil and gas has contributed to Dutch industry both as raw material and energy source.

 

x

Send this page to a friend: Contribution to society

Your name Your friends name
Your email Your friends email
Your comments: