asked the Minister for Energy the origin of the existing crude oil used in Whitegate Oil Refinery, County Cork; and if he will make a statement regarding the specification of oil for processing that would most suit Irish needs.
Ceisteanna—Questions. Oral Answers. - Crude Oil Specifications.
7.
During 1988, the Whitegate Oil Refinery processed approximately 1.35 million tonnes of crude oil. All of this crude oil originated in the North Sea. Whitegate refinery can process a variety of different crude oil types and blends. Since coming into State ownership in 1982 the refinery has processed crude oil from several oil producing areas. INPC monitor a series of different crudes on an on-going basis in order to determine an optimum purchasing policy.
I should like to ask the Minister if, in the context of finding joint venture partners, the specification of oil would be a factor.
The refinery has been able to process crude from Iraq, Saudi Arabia and the North Sea. Specifications change from time to time and environmental considerations and others will require stiffer specifications for petroleum products in the future. Two considerations arise from that: do we confine ourselves to the import of crude which, at the initial stage, is more environmentally desirable and capable of producing a high percentage of petrol, the product we are concerned about, or do we import a different product which would require more expenditure at refinery level to produce a comparative product? There are risks involved in both.
If we choose the more environmentally desirable product and there is not sufficient of it the price could go through the roof. If we select the more difficult process we will be involved in considerably higher expenditure in the context of the development of the refinery. Those matters require detailed study and I would not want at this stage to come down heavily on either side. A degree of flexibility in the refinery is most desirable. We should be able to shift from one emphasis to the other so that we will not be constrained by international considerations which could, if we were bound to one product, force up the price to an extraordinarily high level.
Will the Minister say if there are any difficulties in relation to Russian crude oil? The House will be aware that the Taoiseach has said that there is a prospect of a deal being done with Russia to obtain Russian crude oil and, in view of what the Minister has said, I should like to know if there are any difficulties in relation to the specification for Russian crude oil which may cause problems for refining. Irrespective of whether the Whitegate refinery is upgraded and improved to such an extent that it can refine Russian crude oil, will the environmental problems continue in relation to oil from that source?
I do not profess to be the most technically qualified person to answer the Deputy's question but I am aware that Russian crude, as presently constituted, would present certain problems. However, the technical advice to me is that it is possible to have a blend which would meet the necessary specifications. In other words, we would not be purchasing from one producer, we may well have a number of producers and that combination will have to be put into a proper form.
We would have to mix the crude oil from all sources?
Exactly.