Paul Gogarty (Dublin Mid West, Green Party)
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Question 29: To ask the Minister for Communications, Marine and Natural Resources if he has considered commissioning independent research on the possible future availability and price of oil to the Irish market in view of the fact that international oil prices are again approaching a price of $55 a barrel. [8279/05]

Noel Dempsey (Meath, Fianna Fail)
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While I have not undertaken any specific research on the future availability and price of oil to the Irish market, Ireland, as a member of the European Union and through its membership of the International Energy Agency, IEA, has access to relevant research in these areas.

With regard to the future availability of oil, the question of how long world oil reserves will last is the focus of many and often conflicting research studies, views and opinions. The IEA published its 2004 edition of its world energy outlook on 26 October 2004. In this outlook, the IEA indicated that demand for oil will continue to expand, at a rate of 1.6% a year, from a current level of 82 million barrels a day, and that resources of conventional crude oil are adequate to meet demand until 2030.

Over the years, oil markets have been severely tested by geopolitical developments in the oil producing regions of the world. This is particularly true of recent times with geopolitical tensions in the Middle East, the conflict in Iraq and tensions in Nigeria and Venezuela. Notwithstanding this, however, there has been no recent disruption to oil supplies and global production continues to keep ahead of demand. The price of oil is set by the international oil market, with supply being influenced by OPEC policies. The current high price reflects a complex interaction of unanticipated strong demand, tight capacities and geopolitical uncertainties.

The Irish oil market is an open and private sector one. Retail prices take account of factors such as international market price, importation and distribution costs, and euro/dollar fluctuations. Ireland's high dependence on oil imports makes us price takers, sensitive to the volatility of the markets.