Arthur Spring (Kerry North-West Limerick, Labour)
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Question 142: To ask the Minister for Communications, Energy and Natural Resources the number of barrels of oil equivalent per day of natural gas have been brought ashore per annum on average over the past ten years as a result of drilling in Irish waters; the amount of money this gas has been worth to the economy here; and if he will make a statement on the matter. [20796/12]

Arthur Spring (Kerry North-West Limerick, Labour)
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Question 143: To ask the Minister for Communications, Energy and Natural Resources the number of barrels of oil that have been brought ashore per annum on average over the past ten years as a result of drilling in Irish waters; the amount this oil has been worth to the economy here; and if he will make a statement on the matter. [20797/12]

Pat Rabbitte (Dublin South West, Labour)
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I propose to take Questions Nos. 142 and 143 together.

The only commercial discoveries of hydrocarbons made in the Irish offshore to date are the three producing gas fields (Kinsale, Ballycotton and Seven Heads) in the Kinsale area, along with the Corrib gas field which is currently under development. There have been no commercial discoveries of oil.

Production from the Kinsale area gas fields commenced in 1978 with peak production occurring in the four year period from 1993 to 1996 at an average rate of 96 billion cubic feet (bcf) of gas per annum. The three gas fields are nearing depletion and currently supply approximately 10 bcf per annum or 5% of Ireland's annual gas requirements. The remaining 95% is imported through the gas interconnectors from Scotland.

Regarding the benefits to the Irish economy, production from the Kinsale fields was the catalyst for the development of the gas transmission network in Ireland. The three gas fields have also made a significant contribution to Ireland's security of energy supply since production commenced 1978; though this has fallen off in recent years as the fields near depletion. In common with most major infrastructure projects, the development phase of a petroleum production project give rise to significant employment opportunities with a smaller number of high quality jobs being created on a permanent basis during the production phase.

In terms of the direct financial contribution to the State, profits from the petroleum production are taxed at a rate of 25% while royalties from the Kinsale and Ballycotton gas fields are payable to the State at a rate of 12.5%. While the amount paid in tax is a matter between the operators of the gas fields and the Revenue Commissioners, I can advise that the amount received in royalties since production commenced is €191.7 million.

The following table sets out the volume of gas produced and royalties received in the 10-year period to the end of 2010. While natural gas is sometimes expressed using barrel of oil equivalent units, this measurement relates solely to the energy content of natural gas when compared to oil. Barrel of oil equivalent units are not relevant when comparing the price of gas to the price of oil. For comparison purposes the energy content of 5,800 cubic feet of natural gas equates to roughly 1 barrel of oil equivalent.

Gas Production and Royalty Payments for the 10 year period to end 2010