XOM - Dutch cut natural gas production forecast for Europe's largest field

The Netherlands on Monday reduced output expectations for the Groningen natural gas field, stressing that "the Groningen field will only be an option of last resort." Production at the field operated by Exxon (NYSE:XOM) and Shell (NYSE:SHEL) peaked at ~88.0bcm/y, or ~18% of Europe's current natural gas consumption; for the year ended September 2022, the Government plans to produce 4.6bcm. The field produced as much as 30.0bcm in 2017; however, production is being reduced to zero, in hopes of avoiding risk of seismic activity. Falling natural gas supplies in Europe should help LNG businesses like Cheniere (NYSE:LNG), Shell (SHEL) and Chevron (NYSE:CVX); falling domestic volumes are also a tailwind for producers Equinor (NYSE:EQNR), Vermillion (NYSE:VET) and NRT (NYSE:NRT); however, diplomatic progress in Ukraine has energy shares down across the board Monday.

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Dutch cut natural gas production forecast for Europe's largest field