Catherine Murphy (Kildare North, Independent)
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To ask the Minister for Communications, Energy and Natural Resources if he will provide information on Ireland's strategic oil reserves plan; the estimated stock in days of category one, two and three reserves; the location of the reserves; the estimated cost into the future of maintain the reserves at an adequate level; if projections have been made to take into account a possible extreme spike in the price of crude oil; the details of the levy placed on fuel at the point of sale to fund the oil reserves and the expected increase or decrease of this levy in the near future; and if he will make a statement on the matter. [45389/12]

Pat Rabbitte (Dublin South West, Labour)
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Information on Ireland’s strategic oil reserves planning can be found in the Handbook on Oil Supply Disruption Contingency Measures published on my Department’s website . Ireland is fully compliant with its European Union (EU) obligation to hold 90 days supply of category one, category two and category three oil products for use in the event of an oil supply disruption.

Ireland is also fully compliant with its International Energy Agency (IEA) obligation to maintain 90 days of oil stocks. The National Oil Reserves Agency (NORA) was established to ensure that Ireland meets its EU and IEA oil stockholding obligations. In 2012, under IEA methodology, NORA is required to hold 75 days of Ireland’s 90 day stockholding requirements, the balance of which is held by industry.

NORA meets its stock-holding obligations by a combination of wholly-owned stocks and stock “tickets” (short term contracts to purchase oil in the event of an oil supply disruption).

Of the stocks currently held by NORA, approximately 66% are held as physical stocks on the island of Ireland, 33% are held as physical stocks abroad, and 2% are held as stock tickets.

All industry stocks are held as physical stocks within the State.

It is Government policy to increase the volume of strategic stocks held on the island of Ireland, subject to value for money considerations. In 2011, NORA commissioned two new storage facilities at Ringsend, in Dublin and Kilroot, in County Antrim. In addition, the refurbishment of an existing facility at Tarbert Power Station, County Kerry is at an advanced stage. This additional storage capacity will considerably enhance oil security on the Island of Ireland.

The costs of maintaining the strategic stocks held by NORA are outlined in the NORA annual financial statements, which are published on the website . The costs vary from year to year depending on the obligation level set for NORA which in turn depends upon the level of oil consumption in the State. NORA receives no Exchequer funding and its operations are funded by a levy imposed on the disposal of oil products which is currently 2 cents per litre and by borrowings from commercial banks. The levy rate is reviewed from time to time and was increased from 1 cent per litre to the current rate of 2 cents per litre with effect from October, 2009. I have no plans to amend the current rate.

Ireland, through its membership of the IEA has access to the latter’s oil market analysis, and as such my Department does not undertake independent projections or forecasts of future oil prices. Volatility in global oil prices underscores the Government’s ongoing 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.