Decrease of revenues in lowlands from national gas fields
Description:
The tax income of the Dutch government is derived from three main sources, namely taxes from corporate profits, taxes from private income payments and taxes from natural gas incomes. The last driver is the income from natural gas export: its impact on the budget of the Dutch government has been calculated to comprise of c. EURO 4 billion on a total budget of c. EURO 130 billion (2005). Overall, the impact of the national gas field on the Dutch economy is thus calculated to amount to c. 3% of the government´s budget as well as c. 3% of total GDP. Governments tendency in recent years has been to increase gas output by an average of 10% per year.
Scientific estimates mention that by 2020, the exploitation of the Slochteren gas field will be mostly finalized while it will be totally depleted in 2040 (TNO-NITG).
Enablers:
- finding new energy sources, e.g. by approving legislation for exploitation activities in ecological sensitive areas like Waddenzee
- development of new technologies that enable exploitation of difficult energy sources
Inhibitors:
- earlier depletion of existing national gas fields - no identification of alternative energy sources
- ecological activism against exploitation in ecological sensitive areas
Paradigms:
In case of depletion of energy sources, the Dutch governement may be deprived of at least 3% of its budget or economic income. Specifically in the light of Euro monitary policies, which stipulate that any budget defficiency should be below 3%, this may result in a blow to the Dutch government and welfare system.
Experts:
CBS, TNO-NITG (Nederlands instituut voor toegepaste geowetenschappen).
Timing:
Anticipated end of operation of exploitatoin Sloctheren gas field: 2020
Anticipated total depletion of Slochteren gas field: 2040
Web Resources:
www.cbs.nl
www.tno-nitg.nl