Oil and Natural Gas Resources in Lower Saxony, Germany

In a report published January 5, 2023, the U.S. Geological Survey estimated undiscovered, technically recoverable mean resources of 321 million barrels of shale oil and 435 billion cubic feet of shale gas in the Lower Saxony Basin, Germany (Source: Christopher J. Schenk et al., 2023, Assessment of Continuous Oil and Gas Resources in the Lower Saxony Basin of Germany, 2020, U.S. Geological Survey data release, https://doi.org/10.3133/fs20223081). The input data were published on January 9, 2023 (Schenk, C.J., 2023, USGS National and Global Oil and Gas Assessment Project-Lower Saxony Basin: Assessment Unit Boundaries, Assessment Input Data, and Fact Sheet Data Tables: U.S. Geological Survey data release, https://doi.org/10.5066/P9X92PDD).

Oil and Natural Gas Resources in Lower Saxony, Germany

Oil and natural gas were first discovered in the northwestern region of Germany in the 1860s, with one of the first oil wells operated in the town of Wietze and many more to follow. Today, the German federal state (Land) of Lower Saxony (Niedersachsen) still enjoys a sizeable number of active oil and gas wells, particularly in the region around cities Celle and Gifhorn. However, business development has been on the slow side in recent years, which may prove to be a good thing: Germany’s shale revolution is yet to come.

In its 2023 report, the U.S. Geological Survey presents five different assessment units for shale oil and shale gas, explaining that the Early Jurassic Posidonia Shale is present throughout the Lower Saxony Basin, while the Early Cretaceous Wealden Shale is found in the western half of the basin, and pointing out that in the “Gifhorn Trough”, shale thickness is as much as 100 meters.

According to the report, the Early Jurassic Posidonia Shale has as much as 20 weight percent total organic carbon and hydrogen index values as high as 700 milligrams hydrocarbon per gram of total organic carbon, while the Early Cretaceous Wealden Shale has as much as 14 weight percent total organic carbon and hydrogen index values as high as 750 milligrams hydrocarbon per gram of total organic carbon. The U.S. Geological Survey estimates a mean of undiscovered, technically recoverable mean resources of 321 million barrels of shale oil and 435 billion cubic feet of shale gas in the Lower Saxony Basin.

Lower Saxony, Germany, Is A Good Place to Do Business

Situated in the northwestern part of Germany, Lower Saxony is one of the sixteen states (state level) of the Federal Republic of Germany. Some law-making powers and executive powers rest with the states, which means that Lower Saxony has some say in matters related to mining. However, most of the laws and regulations governing mining, including the extraction of oil or natural gas, are German federal law. Further, environmental requirements and similar restrictions are enacted by the European Union and take precedence over the laws of the EU member states.

Under the German Federal Mining Act (Bundesberggesetz), any business that meets the substantial requirements and correctly makes all necessary applications with the State Office for Mining, Energy and Geology (Landesamt für Bergbau, Energie und Geologie) is entitled to be granted the necessary licenses for the exploration for and extraction of oil or natural gas within specified areas of Lower Saxony (unless another business beat them to it and has already been granted licenses for the area). There are a number of other licenses and approvals that are necessary in order to be allowed to actually drill and use a productive well, including for the use of water, environmental aspects and some other areas of concern. To work on the applications and required documentation, business owners and managers are well advised to set up an expert team, including attorneys licensed to practice in Germany. If done correctly, any red tape can be dealt with.