Jim O'Keeffe (Cork South West, Fine Gael)
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Question 94: To ask the Minister for Communications, Marine and Natural Resources if his attention has been drawn to warnings that there is a serious oil supply crunch on the way, which may result in significant economic disruption and real hardship here; if he has any contingency plans in place to deal with such a situation; and if he will make a statement on the matter. [14364/05]

Noel Dempsey (Meath, Fianna Fail)
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Ireland is a member of the International Energy Agency, IEA, an OECD body which, inter alia, monitors developments in the international oil market. The IEA keeps the oil market situation under constant review. While international oil prices are currently high, the IEA considers that the supply-demand fundamentals should not lead to a supply crisis.

As a member of the IEA, Ireland is required to maintain emergency oil stocks equivalent to at least 90 days of net imports of crude oil equivalent in the previous year. The EU imposes a similar requirement based on consumption. At the end of December 2004, the latest date for which figures are available, the combined stocks of IEA member countries, including Ireland, were equivalent to 114 days of net imports. On 1 March 2005, Ireland's stocks were estimated at 105 days of net imports.

My Department has contingency arrangements in place to deal with major oil supply disruptions. In the event of a significant global oil supply crisis, Ireland's oil reserves would be issued over an extended period to supplement commercial supplies which would continue to be available, albeit at a reduced level, in the normal course. In this context reserves provide cover for periods far in excess of their expression in terms of number of days.

There would be no question of Ireland or any other oil consuming country attempting to deal on its own with an international oil crisis. If such a crisis were to occur, the response, including the release of emergency stocks and the identification of alternative sources of supply, would take place primarily within the framework of the formal emergency regime developed and maintained by the IEA. Under the regime, member states are entitled to a share of available IEA oil stocks in the event of a reduction of at least 7% in normal global supply levels. There are also provisions for a co-ordinated international response to an emerging crisis, without the oil-sharing component, in advance of the 7% trigger.

I am satisfied that Ireland's emergency stock levels are more than sufficient to ensure that we would be in a position to participate effectively in an internationally coordinated response in the event of an oil supply crisis.