The Irish Offshore Industry – Making a Valuable Economic Contribution

To sell in the Irish market, indigenous gas will always have to be priced competitively against the cost of imported gas. As the market develops and more discoveries come on stream, price competition is likely to increase, especially if Irish gas production exceeds national demand. More competition will benefit the Irish economy and Irish consumers.

The offshore industry in Ireland is making a valuable contribution to the Irish economy. Since 1970 expenditure on offshore exploration has exceeded 2 billion euro and of this figure over 30% has been direct expenditure in Ireland. The members of Irish Offshore Operators’ Association (IOOA) recognise the aspirations of Irish suppliers to avail of opportunities in the offshore industry. It is the policy of IOOA members to afford full and fair opportunity to qualified suppliers to compete for the supply of resources and services to IOOA members and their contractors.

The Irish offshore industry is making a significant positive contribution to regional economies, in particular off the south and increasingly the west coast of Ireland.

Members of the IOOA service their operations out of Irish ports and airports. The Port of Cork, in 2007, had 252 vessel movements directly related to the offshore industry, while Cork Airport, in the same year, had 1560 additional helicopter flights and some 100 fixed wing flights. In Killybegs there were 214 offshore vessel movements while additional flights at Donegal's Carrickfinn Airport amounted to 620. This activity contributes significantly to local economies. It is estimated that the industry generated €3.0 million in Killybegs during 2007, with the figure forecast to rise to €5.0 million in 2008. This is especially welcome in a port severely impacted by the decline of the fishing industry.

In addition to reducing Ireland’s dependency on foreign energy supply and helping the country meet its environmental obligations, the Irish offshore industry is making a valuable contribution to our economy.

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