Catherine Murphy (Kildare North, Independent)
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Question 469: To ask the Minister for Communications, Energy and Natural Resources if he has reviewed the recently published IMF working paper, The Future of Oil: Geology versus Technology, WP/12/109, which predicts a near doubling in world oil prices over the coming decade; and if he will make a statement on the matter. [25613/12]

Pat Rabbitte (Dublin South West, Labour)
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Ireland remains critically dependent on imported fossil fuels, particularly oil and natural gas which are subject to price volatility and geo-political rise. This dependency underlines the immediate and long term imperatives of enhancing energy security. Ireland's energy policy objectives are in line with overall EU policy objectives and are informed by the critical work of the International Energy Agency (IEA) on all aspects of energy supply.

I am aware of the paper to which the Deputy refers and which has just been published. It is a working paper which does not represent the views of the International Monetary Fund (IMF) or IMF policy. It models a range of possible future oil prices, based on, respectively, geological and technological assumptions. The paper's conclusion certainly points to potential permanent very high increases in oil prices over the next decade.

Upward trends in global oil prices underscores the Government's commitment 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.

The electrification of transport offers huge potential for Ireland, not just in terms of energy efficiency but also because of the ability to use cheaper grid sourced electricity, an increasing amount of which will be sourced from renewable resources as we progressively deliver on our ambitious target of 40% renewable generation by 2020.

In addition, the Biofuel Obligation Scheme incentivises and enables the sustainable growth of an Irish biofuels market affording opportunities for indigenous biofuel producers and allowing for the displacement of traditional oil products in the transport sector.

The Statutory Biofuel Obligation Scheme was introduced in July 2010 and currently requires that the amount of biofuel brought to the market is not less than 4.166% of the relevant disposal of petroleum road transport fuels. The scheme ensured that 144.5 million litres of biofuel were brought to the Irish market in 2011.

The Better Energy programme provides Exchequer supported incentives for energy efficiency and renewable energy upgrades, as well as bringing on board energy suppliers as partners to directly offer upgrade services to consumers. Low income households are also addressed through a specific retrofit programme aimed at protecting such households from energy poverty.

Delivery on these commitments will progressively reduce our dependence on imported fossil fuels, while supporting energy competitiveness and security as well as employment and economic activity.