"The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails." William Arthur Ward
The huge natural gas reserves in Holland have meant that the country has been a petro-state for a while, just a very quiet one. There is a reason here as to why it is such an agreeable country, even if my personal business experience of dealing with the Dutch is they are as tough as nails when it comes to negotiating.
However, as with all of Europe, they have been prone to green-virtue signalling about their energy for a long time. Given the pre-disposition for windmills, you would expect nothing less. However, as is typical across Europe, a lot has been spoken about but not much done. Since 2015 they have though moved electricity generation from green power from 5% to 15% of the Dutch grid. Oh well, I am sure the climate will be thankful for this.
All the rest is gas, all 85%.
So of course the recent shift in gas prices has a strange dynamic in Holland, on the one hand the huge Groningen field can still produce a huge amount of taxable profits, on the other the citizens re very exposed to the huge prices increases.
So, making a sane decision for once, the Dutch have decided to double the output of Groningen field this year, making Exxon and Shell very happy. This will actually wind down the field, maybe even causing a few earthquakes. No matter, desperate times (and profitable ones) and desperate measures. The domestic supply will be sated, profits made and, err, problems kicked into the future if the Russians continue to ignore their customer base.
Meanwhile, in the UK, we still have politicians wittering on about the need to go green at all costs. The Liberal Democrats are actually suggesting windfall tax on Oil and Gas businesses now, to help the consumers - just as they need funds to open up capacity. The Scots have already cancelled the huge Cambo filed development off Shetland, incredible; the Tories are considering subsidizing the retail energy sellers to help them hedge the market - not thinking at all about supply or the further downside risks of hedging in a volatile market.
The solutions to the crisis are actually within our grasp, but the politicians we are led by will suggest anything but the obvious and practical solutions. The UK should still be an energy exporter with certainly no domestic shock - indeed, it should be windfall times with our gas reserves. It is totally stunning how stupid and badly advised they are collectively.
