Independent Ireland?

"The vast bulk of our gas, over 90%, is imported, making us highly dependent on gas supply from other countries."

Ireland, like all developed countries, uses large amounts of energy. It heats our homes, fuels our transport and supplies our electricity. It is essential to our economy and our daily lives.

The bulk of Ireland’s energy comes from imported oil. Oil accounts for nearly 60% of our overall energy consumption, significantly above the EU average. As our economy grows, so does our reliance on imported oil.

Ireland is also heavily reliant on gas and our consumption of gas is increasing rapidly. There is now a major international shift from oil to gas as a source for power generation. With oil supplies expected to decline in the years to come and growing efforts to reduce the emissions of greenhouse gases, many see gas as the primary energy source for the 21st century. In Ireland gas is extensively used for heating and more than 60% of our electricity is also generated by power plants fuelled by natural gas.

Although Ireland does have some indigenous gas supply, the vast bulk of our gas, over 90%, is imported, making us highly dependent on gas supply from other countries. In recent years the bulk of Ireland’s gas has come from fields located in the North Sea. However supply from this area has already started to decline and in the coming years Ireland will become increasingly dependent on gas supply from more distant and potentially less politically stable areas, such as the states of the former Soviet Union and Central Asia. This is a potential threat to Ireland’s energy security. Ireland needs to plan for more indigenous energy supply and to develop a number of Irish energy sources, which would enhance our security and make us less dependent on foreign supply.



What is Natural Gas used for?

A clean and efficient fuel, natural gas is widely used in Irish homes for central heating, cooking, real flame fires and tumble drying. It is also used extensively by many Irish businesses. However the bulk of natural gas in Ireland is used to produce electricity. At the end of 2006, the electricity generation sector accounted for 62% of total gas demand, the industrial and commercial sector for 20% and the residential sector for 16%.

Source: CER, Gas Capacity Statement, 2007.



Developing Irish Sources of Energy
The lack of substantial Irish energy sources and high level of energy imports leave Ireland vulnerable to supply disruptions and potential price spikes. This can only be countered by developing numerous Irish sources of energy, which would reduce our dependence on foreign energy supply and significantly increase our energy security.

The development of renewable sources of energy, such as wind and wave power, will help. However these sources cannot realistically fulfil Ireland’s high energy demand and ensure a steady supply in the near future. Irish natural gas could however make a huge impact.

Currently the only Irish sources of natural gas are Kinsale, Ballycotton and the Seven Heads field, which are relatively depleted. Gas from the Corrib gas field will significantly boost indigenous gas production. However, once Corrib production declines and unless new fields are discovered and developed, Ireland will again become highly dependent on foreign gas supply.

A report published in April 2006 by Forfás – the national policy and advisory board for enterprise, trade, science, technology and innovation – highlighted Ireland´s dependence on foreign oil. Commercial Irish offshore discoveries to date have all been of gas, although small, thus-far uncommercial quantities of oil have also been discovered.

It is imperative we actively pursue further exploration for oil and gas off the Irish coast. Furthermore we must create the right operating environment for a strong offshore industry, which could supply the country with a reliable source of energy for years to come.


Ireland's gas demand and supply



Ireland is currently highly dependent on gas imports and in the absence of further discoveries will remain so. However, as the figure above demonstrates, gas from the Corrib gas field will significantly boost indigenous gas production, increase Ireland's energy security and make us less vulnerable to potential supply disruptions. To further safeguard our energy security and to ensure continued indigenous supply of natural gas more new fields need to be discovered and developed.

The figure is based on a "central demand-central supply scenario, with gas coming ashore from Corrib in 2009 and Shannon LNG coming on-stream in 2011/2012. Source: CER, Gas Capacity Statement 2007.


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