Four decades of Groningen production and pricing policies and a view to the future

The 1959-discovered Groningen gasfield's size and low-cost production are u nique in Europe. As the monopolistic supplier to Europe's gas markets from 1965, it earned supernormal profits for the Dutch state, Shell and Exxon. A decade later, when alternative suppliers broke the monopoly and Dutch ener gy policy - anticipating gas scarcity - stimulated the exploitation of smal ler fields, Groningen production was constrained. Yet, it remained highly p rofitable and its large remaining reserves still offered long-term producti on potential. Now, impending European gasmarket liberalisation is threateni ng the traditional role of Groningen in the gas supply system. New marketin g arrangements are required that secure and enhance the balancing role of t he held and its profitable exploitation within the wider European context. (C) 2000 Dr Peter Odell. Published by Elsevier Science Ltd. All rights rese rved.