20 June 2006

MINISTER LAUNCHES NEW ENERGY DOCUMENT

- “Fiscal regime must continue to encourage high-risk exploration and the development of relatively small discoveries,” says IOOA chairman

The Minister for Communications, Marine and Natural Resources, Mr. Noel Dempsey, T.D., today launched “Securing Our Energy Future- Irish Gas for a Better Tomorrow” – a new energy document published by the Irish Offshore Operators’ Association (IOOA). The document calls for further exploration for oil and gas off the Irish coast and the development of numerous reliable sources of indigenous energy to ensure the country’s energy security.

The document highlights how 44% of Ireland’s electricity is produced using natural gas and the use of gas as a fuel is predicted to increase even further in the coming years. At the same time over 80% of the country’s gas is imported, making Ireland highly dependent on gas supplies from increasingly more distant and potentially less politically stable areas.

“With oil supplies expected to decline rapidly in the years to come and growing efforts to reduce the emissions of greenhouse gases, there is now a major international shift from oil to gas as a source of energy and many see natural gas as the primary energy source for the 21st century,” said Fergus Cahill, Chairman of the IOOA. “Currently the only Irish sources of natural gas are Kinsale Head, Ballycotton and the Seven Heads field, which are relatively depleted. Gas from the Corrib field will significantly boost indigenous gas production but unless new fields are discovered and developed, Ireland will again become highly dependent on foreign gas supply.”

“Ireland’s energy policy must ensure the development of numerous reliable sources of indigenous energy. Irish gas has great potential and could fulfil a large proportion of the country’s energy need for years to come. In addition, Irish natural gas could achieve major environmental and economic benefits,” added Mr.Cahill.

In addition to covering Ireland’s dependency on imported energy the IOOA document underlines how the use of natural gas, which is cleaner than any other fossil fuel, can help Ireland meet its environmental targets. The document also explains how unlike countries such as Norway and the United Kingdom, Ireland ranks relatively low in terms of exploration attractiveness and is seen as a high risk exploration venture.

“The exploration environment off the Irish coast is a very challenging undertaking and a high risk business from both a technical and financial perspective. The low number of commercial discoveries to date also means that compared to countries like Norway and the UK, Ireland is not seen as a particularly attractive exploration location. Our regulatory and fiscal regime must reflect this and continue to encourage high-risk exploration and the development of relatively small discoveries,” said Cahill.

Launching the document Minister Dempsey said he: “acknowledged the contribution made by members of the IOOA to the Irish economy over the years and that in this context he was particularly pleased to see that members of IOOA service all their operations out of Irish ports and airports".

Founded in 1995, the Irish Offshore Operators’ Association is the representative organisation for the Irish offshore oil and gas industry. Its members are the companies licensed by the Government to explore for and produce oil and gas in Irish waters.

Download "Securing Our Energy Future" (File size - 747 KB)