Germany’s domestic oil production decreased by 5.9% to 1.6 million metric tons in 2023, while gas output saw a decline of 10.4% at 4.3 billion cubic meters (bcm), according to industry association BVEG. The companies involved in domestic gas and oil production reported a turnover of 3 billion euros, down from 5 billion euros in the previous year, reflecting lower market prices.
The decline in domestic oil and gas production underscores Germany’s continued reliance on imports, particularly in the wake of supply disruptions linked to Russia’s invasion of Ukraine. Germany has sought to substitute significant volumes of Russian gas through agreements with Norway and liquefied natural gas (LNG) traders, highlighting efforts to diversify its energy sources.
BVEG’s Managing Director emphasized the importance of maximizing domestic gas and oil output to reduce dependency on LNG imports, citing concerns about higher carbon emissions associated with imported LNG. The industry is actively investing in carbon management, hydrogen, and geothermal activities to support the energy transition.
While Germany sourced a small percentage of its gas and oil demand from domestic reserves, the country possesses substantial underground gas storage capacity, equivalent to 27% of its total annual consumption. This positions Germany as a significant global player in gas storage, alongside the United States, Russia, and Ukraine.
BVEG, representing 81 companies including Neptune Energy, Vermilion Energy, Wintershall Dea, and BEB, underscores the industry’s commitment to addressing the challenges of declining domestic production and advancing sustainable energy solutions.