asked the Minister for Energy the proportion of the national strategic oil stocks held abroad.
16.
Ceisteanna — Questions. Oral Answers. - Oil Supplies.
15.
asked the Minister for Energy if he will make a statement of the up-to-date position of oil reserves in this country dealing in particular with those held (a) at Whiddy Island and (b) abroad.
With the permission of the Ceann Chomhairle, I propose to take Question Nos. 15 and 16 together.
This country's total oil reserves calculated by reference to the relevant formulae laid down by the EEC — Directives 68/414 and 72/425 respectively — amounted to about 1,445,000 tonnes at 31 October 1980. Particulars of the reserves as at 30 November 1980 are not yet available.
Included in the total of 1,445,000 tonnes were
(a) about 145,000 tonnes of oil, mainly crude, stored at Whiddy Island under a long-standing agreement with the company which owns the terminal there.
(b) About 337,000 tonnes of crude oil and product stored, by arrangement with the governments concerned, in other EEC countries on behalf of some Irish oil companies.
The balance is held in this country in crude and product form by the oil companies and large comsumers. The proportions of our oil stocks held abroad will vary from time to time but is normally of the order of 20 per cent.
The total stocks which, following the recent disruption in the oil industry, are the lowest for some time — though the position in this regard is being rectified — represent approximately 93 days, consumption at 1979 levels.
Is the Minister satisfied with the position of the availability of the stocks held abroad in the event of an emergency? Is he satisfied as to the accessibility of those stocks?
I am satisfied that all the arrangements that can be made in respect of them have been made and, as I have indicated, where they are held abroad they are held on foot of government-to-government arrangement. Nevertheless, I have said publicly that I would be much happier if a higher proportion of our stocks was held at home under our own jurisdiction and I am endeavouring to make arrangements which will bring that about.
Is the Minister satisfied with the situation of the stocks held in Whiddy now — that would be approximately 10 per cent of our strategic oil reserves — in view of the present situation that obtains in Whiddy and the difficulty of access to that oil?
I am aware of the difficulty of access but it would not be insuperable in an emergency situation and I am happy that the stocks are being held there within our jurisdiction.
17.
asked the Minister for Energy if he will outline the possible effects on our oil supplies of a continuation of the Iran/Iraq conflict.
Oil exports from both Iran and Iraq ceased when hostilities between them commenced in September. Due to damage to the production and transport installations in both countries it is unlikely that exports could return to their traditional levels for several months after hostilities cease. It is difficult to be precise about our exact dependence on oil from these two sources but it is estimated at less than 20 per cent.
A number of other major oil-producing countries have promised to increase production as a contribution towards offsetting the losses arising from the war. This prospect, coupled with significant stocks in consuming countries and reduced world demand due to the economic recession, should mean that supplies will continue to be reasonably available. However, it is hardly necessary for me to emphasise how volatile the situation is and how difficult it is to be confident, at this time, that supply difficulties will not arise some time during the coming year.
Could I explore with the Minister the question of the price that might have to be paid with regard to filling the shortfall of 20 per cent? Are we having to get supplies on the spot market or on a contract basis?
We are not buying on the spot market. I have no reason to anticipate any shortfall in our supplies over this coming winter, but I cannot say for certain for the whole year ahead that there will not be a shortfall. The indications are reasonably good and the Deputy will be aware that within recent days there is evidence of information of some exports from Iraq, which is helpful to the overall scene.