asked the Minister for Industry and Commerce if he is satisfied that no vital information is being withheld by the two American oil companies exploring for gas and oil off Kinsale, County Cork; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Gas and Oil Exploration.
12.
I am satisfied that all necessary information is being supplied by the two companies concerned.
How does the Minister align that statement with the denial by one of the companies that such a strike took place? But for the vigilance of a journalist in The Irish Press they would still deny that such a strike took place.
I think the Deputy will have to be more specific. There are two separate things: one is a discovery of commercial quantities of gas and the other is what is called a "show", up to now not a commercial quantity of oil. Which is the Deputy talking about?
When the journalist made an investigation he found that certain discoveries were made. He then contacted the headquarters of the oil company concerned. They denied it and asked where the rumours emanated from. Three days later they confirmed the strike.
This version of the facts does not accord with my information. When the Deputy is talking about a "strike" the inference is that there is a commercial discovery of oil. At present there is not a commercial discovery of oil. I am satisfied that the normal transmission of information from the oil companies to the Geological Survey and my Department has been continuing in an uninterrupted way. Indeed, the head of the Geological Survey has been investigating this specific aspect and is satisfied that there is no concealing of information or delay in passing it on.
Will the Minister assure the House that there is no stalling by the companies as a negotiating strategy?
I am certainly able to give the House the assurance that I am not aware of any such stalling by the companies. I am satisfied that it is not happening.
Have officials of the Minister's Department the right to investigate in person exploration sites and study the results there?
The Deputy is raising another matter.
With your permission, a Cheann Comhairle, and without pursuing this too far, I would like to answer this question. The answer is "yes". The head of the Geological Survey has been on the drilling rig for on-the-spot investigations to see what information is available and is satisfied by those inquiries.
Could the Minister also state that the statement he made about oil applies also to gas?
My understanding is that it does.
13.
asked the Minister for Industry and Commerce if he will give an evaluation of the strikes made by two oil companies (names supplied) in relation to oil and gas.
As announced at the beginning of May by the company holding the exclusive concession, the natural gasfield off the Old Head of Kinsale contains reserves estimated at one million million cubic feet. Discussions are proceeding between the company, the ESB and NET regarding the possible utilisation of the gas, should the field be developed.
The company also announced recently that the company which is participating in the agreement is testing oil shows in a well drilled off the Cork coast. Further testing and drilling will be required before the significance of these oil shows is known.
Would the Minister not agree that it is significant that the first statement we had from the Minister was yesterday and the night before last as a result of these questions being put down? Surely the Ministers concerned had an obligation to make these statements earlier than they were made?
Rubbish, they were made six months ago.
They were not.
There are two totally separate things here. One is the gas discovery which was made a long time ago. With regard to oil, a statement was put out by the oil, companies which, as far as we were concerned, was factually correct in the light of everything we knew. All I am doing now is repeating information which has been available for some time. I have nothing new to say. It is important to emphasise that what has been found in regard to oil because of the Esso drilling is what the oil men call a "show". There is a "trace" which is practically nothing, and there is a "commercial find" that is worth exploiting. There is something in between which is called a "show". We have a show that is in the course of being investigated and assessed. We have nothing more than that. We have nothing to add to what the company have said except this: we hope there is a real resource on the Continental Shelf but we would be mistaken, as a Government and as a nation, to build enormous expectations on it until we have some hard facts. At the moment we do not have hard facts but we are actively pursuing the matter.
Is the Minister aware of the disquiet felt by some people about possible abuse or manipulation of these resources?
That might be dealt with in the next question.
I think the people have less need to feel disquiet about possible abuse or manipulation now than in the past. The principal source of worry in this regard is an agreement originally entered into in 1959 but which, I think, can be dealt with in a way that will give satisfaction to everyone.
14.
asked the Minister for Industry and Commerce if he proposes to introduce new legislation concerning offshore drilling; if so, the form it will take; and if he will make a statement on the matter.
Policy and procedures relating to facilities for off-shore petroleum exploration and development are being currently reviewed. When this review has been completed, which I hope will be later this year, I will make an announcement in the matter.
Is the Minister telling the House that while offshore drilling is proceeding on a fairly substantial scale, we will have to wait until the end of the year before we have any legislation in the matter?
The offshore drilling being carried out is being done under agreements made in 1959 and confirmed in 1969. Even if I wanted to repudiate those agreements I am advised they are legally binding. Nothing that has happened in the tenure of office of this Government has influenced the right of Marathon and Esso to drill under the previous agreements, although we can form whatever opinion we like about their wisdom. In regard to future permission to drill in areas covered by future licences, it was essential to have a considerable amount of seismic information that was not available when we came into office, and it was also essential to see the exact nature of the British arrangements because they are contiguous to us and have a large oil find, before we finalise the details of our arrangements. The detailed seismic investigation and the awaiting of details of the British arrangements are not just prudent; they are essential if we are to maximise the benefit to this country of what we hope is on the Continental Shelf, both of oil and gas.
Can the Minister state when the seismic survey was commenced?
I understand it was commenced a year ago and is now nearly completed.