Joe Carey (Clare, Fine Gael)
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I thank the Ceann Comhairle for facilitating this debate and I welcome the fact the Minister for Communications, Energy and Natural Resources, Deputy Rabbitte, is here. A 2006 departmental study estimates that 10 billion barrels of oil and gas equivalent are in Irish waters, worth €800 billion at prices of €80 per barrel. I welcome the recent announcement made by the Minister, Deputy Rabbitte, at the Atlantic 2011 petroleum conference, outlining that 13 new licensing options have been awarded to 12 companies.

We must see a dramatic increase in exploration activities in this country, given the massive potential which exists. The announcement by the Minister at the conference will encourage exploration drilling off our shores, which is an important step in realising our potential. We must advertise the fact that Irish offshore oil exploration offers significant potential, and the Minister's announcement does that.

As we up our game in this country with regard to oil exploration I propose the establishment of an interdepartmental group to examine the potential on offer from Moneypoint pier in the Shannon Estuary in County Clare. There is considerable spare capacity at the pier in Moneypoint and in its environs which could be used as a headquarters for oil exploration teams working off the west coast. It is a deepwater pier with 24-hour access, offering ease of passage to supply ships. It is a bonus that it is already an industrial site.

I ask that an interdepartmental working group be established to compile a report and formulate a plan for a high-tech oil exploration support base at Moneypoint. It should be chaired by the Department of the Taoiseach and include the Departments of Communications, Energy and Natural Resources; Transport, Tourism and Sport; the Environment, Community and Local Government; and Jobs, Enterprise and Innovation. The working group should also include the ESB, Clare County Council and Shannon Development. The development of such a base at Moneypoint would give a significant boost to the Shannon Estuary, unlocking its potential as an industrial base and would have a positive consequence for jobs in County Clare and the mid west. It would be very beneficial.

I request that this interdepartmental group be established without delay and that a report and plan be drawn up. This plan could be used in our efforts as a State to accelerate the discovery of oil in offshore fields.

Pat Rabbitte (Dublin South West, Labour)
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I am grateful to Deputy Carey for raising this important issue. I begin with the positive position that the Irish offshore has recognised potential as a petroleum-producing area. However, while I recently made the announcement to which Deputy Carey refers in respect of the outcome of the 2011 licensing round, which resulted in the offer of 13 licensing options in the Atlantic margin, the reality is it will be some time before any of these could turn into exploration drilling. Overall, for the coming years the level of exploration activity requiring specialist port services is likely to be low, with on average only one to two exploration wells drilled in the Irish offshore annually. In the near term, it is expected the majority of drilling in the offshore will take place in the Celtic Sea and is most likely to be serviced by the ports on the south coast.

We also need to recognise that several Irish ports are well located to act as the service port for exploration activity off the west coast, including the ports of Foynes and Killybegs. The Port of Foynes has traditionally served as the oil and gas exploration support base in the Shannon Estuary. It has all the basic port requirements including good road access and bunkering. However, as there has been more activity off the north-west coast in recent years, principally associated with the development of the Corrib gas field, this work has been serviced from Killybegs.

Turning specifically to Moneypoint, as raised by Deputy Carey, this is a key part of the national strategic Infrastructure. It generates a substantial portion of Ireland's electricity demand and it provides important fuel diversity for the country. The jetty at Moneypoint is a large and specialised structure designed specifically to off-load coal from bulk ships up to approximately 200,000 tonne capacities. As such, the jetty has large conveyor belts running along its full length and also has two large ship unloaders, all of which are capable of handling only solid bulk material such as coal. Obviously, the continued use of this equipment is vital to maintain operations at Moneypoint. There are not currently facilities or space on the jetty for handling materials or services that might be associated with the oil exploration industry.

It is also important to note that the Moneypoint coal-fired power plant has a number of key roles including generation, dual-fuel capability and on-site fuel storage, which make it subject to specific environmental constraints under the large combustion plant directive, the national emissions ceiling directive, the emissions trading directive, the IPPC directive and the ambient air quality directive.

The ESB generating station at Moneypoint is the most important power station in the national emissions reduction plan, NERP. The air emissions targets set out in the NERP are dependent on reductions in emissions from Moneypoint. Having already invested significantly in the Moneypoint environmental retrofit project to reduce sulphur dioxide, SO2, and oxides of nitrogen, NOx, emissions, the ESB is keeping abreast of technological developments in this area through its membership of industry bodies, including the Electric Power Research Institute, EURELECTRIC, VGB, the Edison Electric Institute and the Association of Edison Illumination Companies.

Having regard to hydrocarbon exploration activity for the foreseeable future and the nature of the Moneypoint facility, at this stage it is too early to identify the location that would best serve an eventual oil or gas production location that will hopefully develop in the Atlantic. It is also important to appreciate that once a discovery is made, it will take some time to bring it to development. Because of that time lag I must admit that I have not focused on the important point raised by Deputy Carey but I assure him that I will now do so.

Joe Carey (Clare, Fine Gael)
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I thank the Minister for his reply. I accept the issue is a long-term one but we must do work on it now. There is considerable merit in Moneypoint. It is perfectly located in the Shannon Estuary and has significant attributes. If we can exploit the potential now the establishment of an interdepartmental group, as proposed, would make a compelling case for Moneypoint, the pier and site. It would offer accommodation for the headquarters of oil exploration teams to locate their engineering and logistical functions. I appeal to the Minister to establish such a working group to examine the pros and cons of using the pier site to drive the project.

Pat Rabbitte (Dublin South West, Labour)
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I again thank Deputy Carey for raising a matter that has not been to the forefront of my mind which does not mean it is not very important.

I also have great difficulty addressing a House with no Opposition. It is the first time I have ever seen the House without an Opposition. I have taken many lectures on how dedicated Opposition Members are to spending time in the House while the rest of us are working in our offices.

Moneypoint is a dedicated and specific facility built and designed for that purpose but as Deputy Carey indicated, it has many natural advantages. Because the rate of drilling offshore has only been of the order of on average less than two holes per year the demand is limited. As I said, in one case the drilling was serviced from the southern ports and in the other from Killybegs. They have developed some facility in doing so. Foynes is a significant port in its own right. I do not know about the correct mechanism at this time to explore the matter but now that Deputy Carey has raised an important issue in terms of infrastructure to cope with what hopefully will be positive prospects offshore I will certainly examine the matter.