Written answers

Thursday, 17 November 2005

Department of Communications, Energy and Natural Resources

Energy Resources

5:00 pm

Photo of Jim O'KeeffeJim O'Keeffe (Cork South West, Fine Gael)
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Question 78: To ask the Minister for Communications, Marine and Natural Resources the details of the emergency oil reserves held by the State; the locations where they are maintained; if he has satisfied himself that they are adequate to cope with global scarcity arising from war or otherwise; and if not, his proposals in this regard. [35032/05]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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As a member of the International Energy Agency, IEA, Ireland is required to maintain emergency oil stocks equivalent to at least 90 days of net imports in the previous year. The EU imposes a similar requirement based on consumption.

On 1 September 2005, the latest date for which comprehensive figures are available, Ireland's emergency oil reserves, whether held at home or in other EU member states, amounted to the equivalent of 116 days of net imports using the IEA methodology. These stocks are made up of: wholly-owned stocks held in Ireland by the National Oil Reserves Agency, NORA, and industry or oil consumers equivalent to 79 days of stocks; wholly-owned stocks held by NORA in other EU member states under cover of bilateral agreements equivalent to seven days of stocks; and stock held by NORA in the form of "stock tickets" in other EU member states, under cover of bilateral agreements, equivalent to 30 days of stocks. "Stock tickets" represent oil stocks which are available to NORA, under commercial contracts, in the event of an oil emergency.

In the event of a significant global oil supply disruption, these reserves would be eked out over an extended period to supplement commercial supplies which would still be available in the normal course — albeit at a reduced level — so as to provide cover far in excess of their nominal duration. If, for example, there were a 10% reduction in world oil supplies, a level of disruption unprecedented over the past four decades, then it is estimated that our current reserves would last for approximately three years — longer when combined with the reduction in consumption which would be achieved by the demand restraint measures which would be triggered by a crisis of this magnitude. The IEA also has formal mechanisms for the fair sharing of available oil in the event of a crisis. The locations where Ireland's oil stocks are held are shown in the table, expressed in days.

Ireland Denmark NL Sweden UK Overall Total
NORA Stocks — Wholly owned 34 43 41
Ticketed (Stock tickets)3 2 15 13 33
Industry/Consumer Stocks 42 42
Total 79 2 15 4 16 116

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