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We need to search hard for natural gas and use smart methods to get it out.
Gas must be given a new role to enable renewables.
We find that the nature of the gas market is changing.
In a few decades' time we'll run out of gas and need something to replace it.
Last year, these gentlemen earned 900 euros from natural gas. This lady too.
We all did in fact.
Last year, natural gas sales added 14.5 billion euro to our treasury.
While over the last 60 years, Dutch gas revenues totalled 236 billion euros.
Staggering figure, isn't it? That's how important natural gas is for our country.
Moreover, 98% of all Dutch households use natural gas for cooking, heating...
We simply cannot do without.
Our natural gas is produced in 250 fields, both on land and in the North Sea...
and is extracted by 15 gas producers, either big or small.
The government has a 40% participation in these gas extractions...
which is managed by EBN, a fully state-owned agency.
EBN participates in gas exploration, drillings, extraction and storage.
All EBN profits flow straight into the state coffers.
Forty per cent of small-field revenues is used to cover gas extraction costs...
while 18% goes to the producers and 42% to the Dutch tax administration.
The government is major shareholder in our No 1 source of income: natural gas.
Why is that?
If you found gold, you wouldn't give it away to a production company either.
It's the same with natural gas. With profits outweighing extraction costs...
the state likes to claim its fair share as well as oversee the production process.
Natural gas is a major energy source. EBN ensures government participation...
from both an economic and a technological perspective.
Natural gas is also important because it creates jobs:
Overall, the Dutch natural gas industry employs 16,500 people.
This includes production jobs both on land and offshore.
But also seismic research efforts, exploring potential gas fields...
and innovative engineering to make the industry safer and more sustainable.
Supplying industries are needed to carry both people and materials.
Commissioned by the Dutch government, a British agency calculated...
that a 20 billion euro gas infrastructure investment including pipes and storage...
will yield 136,000 man years worth of work for the Netherlands.
A so-called Gas Roundabout investment. We're a major gas importer and exporter.
The Gas Roundabout safeguards natural gas supply to Dutch users.
It positions us as a key natural gas supplier. It's a major source of income...
comparable to the Port of Rotterdam. And we serve the home market as well.
Forty per cent of all EU-produced natural gas is extracted here.
It's a major industry, involving transport, storage and customer supply logistics...
as well as quality issues, consultancy, legal aspects and expertise.
So why not capitalise on it, this being the hub of the European gas industry.
It generates new jobs, business, trade, knowledge, education...
all kinds of economic activities.
The 250 Dutch gasfields annually produce 75 billion cubic metres of natural gas.
We import 25 billion cubic metres, from Norway and Russia, for example.
We consume 45 billion cubic metres, while exporting 55 billion...
to countries like Germany, France, England and Italy.
The European gas market is shifting, with Russia and Norway producing less.
Last year, GasTerra traded 30% less gas from these countries than in 2011.
We need to extract every bit of gas, and efforts are already underway.
But production will decline and reach an end in 30 or 40 years' time.
It's the supporting services that we need to boost to generate new income:
Storage and transport services, quality control, and particularly...
solar and wind energy markets, which will be big in 20 years' time...
but are also highly volatile, requiring a flexible back-up system.
If there is too little wind or solar power, natural gas will take over...
which requires major service support. This will define the future of natural gas.
We still make the most money out of Dutch natural gas...
making it attractive for the Dutch government to extract natural gas locally.
We may want to consider lightening the tax burden on natural gas extraction...
to attract other gas producers as well.
In the long term it's good for our country to retain natural gas ownership...
whilst ensuring we meet our target of 100% sustainable energy by 2050.
Until then we'll need these gas supplies to compensate for natural energy.
We need natural gas for cooking and heating, but even 60% of our electricity...
is generated by natural gas. Plus its sales earn us millions of euros.
But will natural gas remain important? More cheap foreign coal is coming in.
Will that pose a threat? To find out view the other Mineral Gas Update...
on coal and natural gas. Bye for now.