Dáil debates

Wednesday, 15 June 2022

Energy Security: Motion [Private Members]

 

10:22 am

Photo of Ossian SmythOssian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following: notes that:
- the Programme for Government: Our Shared Future sets out a clear pathway towards less reliance on fossil fuels across every sector of our society, and it specifically contains a commitment to end the issuing of new licences for the exploration and extraction of gas on the same basis as the decision taken in 2019 by the previous Government in relation to oil exploration and extraction;

- this commitment was made effective immediately, and since June 2020 the Department of the Environment, Climate and Communications no longer accepts new applications for new petroleum authorisations and, in addition, there will be no future licencing rounds;

- holders of existing authorisations, including Exola DAC, a subsidiary of Providence Resources Plc are not affected by these changes and may apply to progress their authorisations through the licencing stages towards a natural conclusion – which may include expiry, relinquishment or production;

- the Climate Action and Low Carbon Development (Amendment) Act 2021 gives statutory underpinning to this position and a new policy statement for petroleum exploration is currently being prepared to reflect the current policy and legislative position and to provide clarity to stakeholders in relation to future authorisations which may be granted under legislation;

- an application for a Lease Undertaking made by Providence Resources in respect of the Barryroe oil and gas field is under consideration by the Department of the Environment, Climate and Communications;

- broader energy policy or energy security considerations have no bearing on the regulatory process: applications for petroleum authorisations are assessed against a number of criteria in accordance with Section 9A of the Petroleum and Other Minerals Development Act, 1960 and Section 3 of the Licensing Terms for Offshore Oil and Gas Exploration, Development and Production, which includes the technical competence of the applicant and the financial resources available to it in order to undertake the work programme and any other commitments pursuant to the relevant petroleum authorisation; and

- the Department of the Environment, Climate and Communications does not publish information on individual applications whilst they are under consideration."
The programme for Government states climate change is the single greatest threat facing humanity and commits the Government to react comprehensively and imaginatively to this challenge in a manner that ensures we achieve a rapid reduction in and then reversal of our impact on the climate. Climate change means the fossil fuel-based economic model is no longer fit for purpose and we must make the necessary structural changes to break the link between fossil fuels and economic progress.

The measures proposed by the Deputies would represent significant changes in policy and would have significant negative effects on key national objectives on the environment, climate action and energy. The Government is opposing the motion and proposing a countermotion that notes that the Government's policy on oil and gas exploration has been clearly articulated through the programme for Government and is underpinned by the Climate Action and Low Carbon Development (Amendment) Act 2021. The policy and legislative framework sets out that while existing authorisation holders may seek to apply to progress through the various stages in the petroleum exploration process, no new applications for oil or gas can be considered.

Previous Governments have operated a concession system whereby petroleum exploration companies are given rights to explore for petroleum within defined acreage offshore, through a licensing system that progresses from a licensing option to an exploration licence and a lease, in the event of a commercial find. Progression from licensing option to exploration licence and between the individual phases of an exploration licence depends on the authorisation holder fulfilling work programme obligations. Industry carries the financial risk associated with such exploration and fiscal terms have been designed to strike the necessary balance between attracting the high-risk exploration investment necessary to prove the potential of the Irish offshore and maximising the return to the State from Ireland's natural resources.

Since exploration began in the Irish offshore, four commercial gas discoveries have been made, namely Kinsale Head, Ballycotton, Seven Heads and Corrib. While there have been some discoveries of oil in the Irish offshore, to date none of these have been declared commercial. In the interest of transparency and in accordance with section 57 of the Petroleum and Other Minerals 1960 Act, the Minister is required to present to the Houses of the Oireachtas a six-monthly report on petroleum exploration and development in Ireland. This report sets out the particulars of all authorisations granted by the Minister that are current during the reporting period. This includes the amount relating to petroleum exploration and development collected by the Minister during the reporting period and other information relating to petroleum exploration and development in Ireland. In addition, an acreage report setting out the position of each authorisation and a concession map is published every quarter on the Department's website.

The Government is reducing the reliance of every sector of our society on fossil fuels. The programme for Government committed us to ending the issuing of new licences for the exploration and extraction of gas on the same basis as the 2019 Government decision on to oil exploration and extraction. This has been given statutory effect in section 21 of the Climate Action and Low Carbon Development (Amendment) Act 2021, which prohibits the issuing of new extraction licenses for oil and gas. There is no argument for reconsidering the ban on new offshore oil and gas exploration. A revised petroleum policy statement will be published in the coming months to reflect the current Government position. It will also give clarity to stakeholders on the position regarding authorisations into the future. A transition to renewables is the only way to progress and the proposed change set out in the motion would only distract from this. While no new authorisations for new exploration will be granted, existing authorisations are unaffected by the change and can continue to apply through the licensing stages until they reach a natural conclusion that may include expiry, relinquishment or production. However, any applications for follow-on authorisations still require ministerial consent. The criteria are set out in section 9A(1) of the Petroleum and Other Minerals Development Act 1960 and section 3 of the Licensing Terms for Offshore Oil and Gas Exploration, Development and Production. They include the technical competence of the applicant, the financial resources available to it to undertake the work programme and any other commitments pursuant to the relevant petroleum authorisation. All applications are processed in the same manner in line with the relevant policy and regulatory requirements and they are all subject to robust assessments from a technical and financial perspective. The timelines associated with processing applications can vary, depending on the nature of the applications, to complete such assessments.

The application for a lease undertaking referenced in the motion is being considered under a robust assessment process by the Department of the Environment, Climate and Communications, in line with the criteria referenced earlier. It is important to note the licence application assessment process is informed only by financial, technical and environmental considerations and not by energy security or broader energy policy matters. The Department does not publish or discuss information on individual applications while they are under consideration.

It would be inappropriate for me or the Department, from a legal and regulatory perspective, and will offend due process to comment on specific details regarding any individual licences or applications pending a formal decision being made.

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