Simon Coveney (Cork South Central, Fine Gael)
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Question 380: To ask the Minister for Communications, Energy and Natural Resources the cost of the Review of the Security of Ireland's Access to Commercial Oil Supplies September 2008; the action he has taken since the publication of this report; and the action he will take in relation to this issue and the issue of Ireland's oil reserves over the next 12 months. [7202/09]

Simon Coveney (Cork South Central, Fine Gael)
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Question 381: To ask the Minister for Communications, Energy and Natural Resources the details of the report into the security of Ireland's oil reserves; the action he will take as a result of this report; the cost of commissioning this report; and if he will make a statement on the matter. [7203/09]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 380 and 381 together.

The report on the review of the security of Ireland's access to commercial oil supplies was commissioned by my Department on foot of a commitment in the Government White Paper "Delivering a Sustainable Energy Future for Ireland — the Energy Policy Framework 2007-2020". Given that Ireland is 100% dependent on imports for its oil requirements and that oil represents approximately 56% of our total energy needs, it was considered crucial that this analysis was undertaken to identify any weaknesses in Ireland's position with regard to securing adequate supplies of oil.

The report was carried out on behalf of my Department by international oil consultants, Purvin and Gertz, and Irish energy consultants, Byrne and O'Cleirigh, at a cost of €271, 754 (inclusive of VAT). The report found that in normal circumstances, there is no significant risk to Ireland in terms of availability of commercial oil, or the capability of Ireland's oil industry to procure oil. The report noted that the principal risk to commercial oil supply arises from some weaknesses in the infrastructure links for importing, storing and distributing oil supplies. The three principal ports for importing large oil cargoes are Dublin, Whitegate and Shannon Foynes, with Dublin accounting for 45% of Ireland's oil imports. Other ports are used for smaller shipments and transhipment from the larger ports.

In light of Ireland's key dependency on Dublin Port, the consultants recommended that any redevelopment of Dublin Port should recognise the importance of maintaining adequate capacity for commercial oil importation and storage. The consultants also suggested that options for accommodating larger ships at Dublin, Whitegate and Shannon should be considered. The report has been furnished to the Department of Transport and to Indecon consultants, who are currently undertaking a study of the role of Dublin Port on behalf of the Department of Transport.

The report also recommends investigation and consultation on a range of large-scale, long-term proposals, including the development of a commercial distribution and strategic oil facility outside of Dublin, with pipeline connection to Dublin Port and a possible pipeline from the refinery at Whitegate to the new facility. These proposals will be examined very carefully, in consultation with stakeholders, particularly the oil industry. The report recognised that the pipeline proposal would not necessarily be justified from either a commercial or security of supply perspective.

The consultants also recommended that the Government undertakes a broad analysis of the future for the refining operation at Whitegate. Approximately 25% of Ireland's oil products are refined in Whitegate. Under the 2001 Sale and Purchase Agreement for the Whitegate and Bantry facilities between Government and the owners of these facilities, the owners have legal obligations to operate these facilities until 2016. My Department will be engaging with the owners of the refinery, the oil industry, and stakeholders generally, with a view to considering options for the future of these facilities beyond 2016.

While the report found that there is currently no significant risk to supplies of oil, or the ability of the oil industry to import oil for onward distribution, in normal circumstances, it pointed to measures that would minimise the effects of any major disruption to oil supplies, such as a blockage at Dublin Port. In particular, the report suggests that the National Oil Reserves Agency (NORA)should increase the level of strategic stocks held on the island of Ireland, so that adequate stocks would be available to deal with any disruptions to port infrastructure. The Government's Energy Policy Framework 2007-2020 already commits to the rebalancing of strategic oil stocks in favour of wholly owned stocks on the island of Ireland, subject to value for money considerations. NORA has recently placed a notice in the Official Journal of the EU seeking expressions of interest by consultants to manage a tender process for the procurement of additional storage on the island. The findings of this P&G report will critically inform this process and the report will be provided to tenderers.

As regards the position with the oil reserves generally, Ireland is fully compliant with its obligations to maintain 90 days' of strategic oil stocks exclusively for use in the event of an oil supply disruption. Ireland holds its strategic stocks through a combination of stocks held by industry, and stocks held in Ireland and abroad by NORA. In planning for any possible disruptions, my Department is also examining the links between oil and gas disruption, and is coordinating planning so that the necessary supplies of oil to cater for fuel-switching in the event of a gas disruption can be catered for. This would be particularly important for electricity generation.