Tommy Broughan (Dublin North East, Labour)
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Question 165: To ask the Minister for Communications, Marine and Natural Resources if, in view of events in the USA and UK and the difficulties in refining capacity, the effect this will have on the security of supply here; and if he will make a statement on the matter. [27890/05]

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. 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 1 August 2005 Ireland's oil stock reserves were estimated at 124 days net imports. The Department of Communications, Marine and Natural Resources 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 eked out over an extended period to supplement commercial supplies which would continue to be available, albeit at a reduced level, in the normal course. Reserves provide cover for periods far in excess of their expression in terms of number of days.

There would be no question of Ireland attempting to deal on its own with an international oil supply disruption. 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 within the framework of the formal emergency regime developed and maintained by the IEA.

With regard to the recent hurricanes which hit the US, IEA member countries agreed on 2 September 2005 to offer a total of some 60 million barrels of crude oil equivalent to the market over 30 days as a measure to offset production and refining losses. In accordance with IEA rules, the contributions were based on agreed shares of oil consumption. Ireland's contribution, 0.4% of the total required, amounted to a draw on NORA stocks of some 33,000 metric tonnes of gasoline, equivalent to one and a half days of stock reserves. The cargo was sold, via a tender procedure, and has been shipped to the US.

With regard to the UK, while there was a recent threat of a blockade of refineries this did not actually occur and consequently there was no disruption to supplies into Ireland. In the event that such a disruption had materialised I have significant legislative powers to address the situation. Short-term disruptions would probably be met by a drawdown of Government stocks held by the National Oil Reserves Agency into the Irish market.

Notwithstanding the stockdraw and normal commercial fluctuations in the volumes of industry stocks that occur, I am satisfied Ireland's emergency stock levels are more than sufficient to ensure we would be in a position to participate effectively in any further internationally co-ordinated response in the event of a world oil supply crisis or manage any short-term disruption specifically impacting on the Irish market.