Shell contributes over €10 billion per year to the Netherlands economy

The socioeconomic impact of petrochemical giant Shell in the Netherlands is above €10 billion per year, according to an economic study from Oxford Economics.

Despite persistent global economic headwinds, Shell has continued to provide a reliable source of energy that the Netherlands needs to power its industries, transport networks, and homes.

Shell, which has Dutch roots but nowadays is headquartered in London, is active in every area of the energy industry, including oil and gas exploration, operating refinery plants, running petrol stations, electric vehicle charging infrastructure, generating renewable energy, and research and development (R&D) into new technologies.

€10 billion per year

The study from Oxford Economics looked into the economic contributions from Shell’s direct on-site operations, but also the indirect impact in areas such as supply chain spending, and the induced impact the company supports through employment. These impacts are quantified in terms of gross value added contributions to GDP, the number of jobs supported, and government tax revenues raised.

The study also looked at Shell’s wider contributions to the Netherlands, including its impact on society and the economic impact of its R&D activities.

Shell’s direct impact was calculated at €5.8 billion, equal to about 0.6% of the Dutch GDP in 2022. To generate this economic contribution, Shell directly employed 8,421 people in the Netherlands in 2022. The company employs a diverse range of professionals and specialists to carry out its activities.

Shell’s direct impact spans to every corner of the country, from South Holland where Shell has its head office in the Hague (formerly its global headquarters) and the Pernis Refinery in Rotterdam, to North Holland with its Pottendijk onshore windfarm and onshore gas field in Groningen.

Within the Netherlands, Shell’s largest gross value-added contribution was in Rijnmond, with €2.1 billion, followed by Groningen, where it generated €1.6 billion in 2022, and Haaglanden, with a €1.1 billion contribution.

As for the indirect impact, Shell was behind €3.2 billion in gross value added, including €1.2 billion in payments to the government, and through the sustainment of about 30,000 jobs.

Shell purchased goods and services from over 2,300 individual businesses in the Netherlands including business services providers, equipment manufacturers, consulting firms, technology companies, and utilities providers.

When it comes to Shell’s induced impact in the Netherlands, the company’s footprint stretches beyond its core economic contributions, with its activities also supporting impressive employment numbers.

Most of the jobs supported by Shell in the Netherlands are well-paid positions. Shell is estimated to have supported 26,000 jobs in well-paid sectors with average yearly salaries exceeding €40,000. These jobs also span different age groups, with 6,900 Shell-supported positions being occupied by people aged 15 to 24, and on the opposite end, another 5,500 jobs for people aged 60 and over.

“Shell makes important contributions to Dutch energy security. Shell’s involvement in NAM’s gas storage facilities – which accounted for an average of 69% of the country’s total gas storage between 2011 and 2024 – provides the Netherlands with the flexibility to withstand supply shocks,” reads the report.

However, it should be noted that not everyone in the Netherlands is happy with Shell. In the northern region of Groningen, natural gas drilling has contributed to an increasing number of earthquakes. An estimated 100,000 residents in the Groningen province live in homes damaged by earthquakes and over 3,300 buildings needed to be demolished.

Shell has a primary listing on the London Stock Exchange and secondary listings on Euronext Amsterdam and the New York Stock Exchange.