Noel Harrington (Cork South West, Fine Gael)
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Question 64: To ask the Minister for Communications, Energy and Natural Resources his strategy regarding future plans for the refining of oil and oil products here over the next ten years; the strategic concerns he might have in this area; and if he will make a statement on the matter. [37208/11]

Noel Harrington (Cork South West, Fine Gael)
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Question 65: To ask the Minister for Communications, Energy and Natural Resources his strategy regarding future plans for the storage of crude oil and oil products here over the next 10 years; the strategic concerns he might have in this area; and if he will make a statement on the matter. [37209/11]

Pat Rabbitte (Dublin South West, Labour)
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I propose to take Questions Nos. 64 and 65 together.

Ireland is critically dependent on imported fossil fuels, particularly oil and natural gas to meet its energy needs. The Government is fully committed to enhancing energy security and to delivering national energy efficiency and renewable energy objectives, which are aimed at moving the economy away from reliance on imported, carbon intensive fossil fuels.

Ireland's only oil refinery, which currently supplies approximately one-third of Ireland's oil product requirements, is at Whitegate in Cork and is operated by ConocoPhillips.

In 2001, Whitegate Refinery and Bantry Terminal were bought from the State by Tosco Corporation. Following various mergers and acquisitions, ConocoPhillips took over Tosco and are the current owners of the refinery at Whitegate and the oil storage terminal at Bantry. The day to day operation of the refinery and terminal is a matter for ConocoPhillips.

Under the terms of the sale, Whitegate Refinery and Bantry Terminal must continue to be operated until 2016. This obligation applies also to ConocoPhillips and any subsequent owners.

In view of the need to consider the role of the refinery post 2016 and to inform policy decisions on refining, my Department commissioned a review of the strategic case for oil refining requirements on the Island of Ireland in August 2011.

This review which is currently ongoing will include a forecast of oil demand scenarios for the period to 2050 and an assessment of the strategic merits of appropriate refining capacity on the island of Ireland.

I expect the final report, including conclusions and recommendations, to be received by my Department early next year.

With regard to strategic storage, Ireland is required under EU and IEA obligations to hold 90 days of oil reserves. The bulk of Ireland's oil stocks are held by the National Oil Reserves Agency (NORA), with the balance held by industry.

Of the stocks held by NORA, 53% are held as physical stocks in Ireland, 42% as physical stocks abroad and 8% as stock tickets, which are contracts to purchase oil. It is Government policy to increase the volume of strategic stocks held on the island of Ireland, subject to value for money considerations.

NORA is working to develop new storage facilities, including two which were commissioned earlier this year in Ringsend and Kilroot, which have considerably enhanced oil security on the island of Ireland.