Vol. 496 No. 1
67 Mr. Stagg asked the Minister for the Marine and Natural Resources the powers, if any, he has to oblige offshore oil and gas exploration rigs to use Irish goods and services; and if he will make a statement on the matter. [19958/98]
68 Mr. Stagg asked the Minister for the Marine and Natural Resources the benefit to the Irish economy from the operation of oil rigs and drilling platforms in Irish territorial waters; the additional benefits, if any, which would accrue arising from the discovery of commercial quantities of oil or gas; and if he will make a statement on the matter. [19959/98]
I propose to take Questions Nos. 27 and 28 together.
Drilling operations in the Irish waters provide opportunities for suppliers of goods and services and these opportunities arise mainly from the use of airports and ports as supply and service bases, from the supply of contract support vessels and from the purchase of provisions and other services.
However, I have no powers to oblige operators engaged in exploration activities in the Irish off-shore to use Irish goods and services. As the Deputy is no doubt aware the imposition of such conditions on licence holders is precluded under EU regulations. It is the policy to ensure that the Irish economy benefits to the maximum extent possible from offshore exploration activities within the constraints of EU legislation. I have continually impressed on the Irish Offshore Operators Association and the individual operators that Irish suppliers of goods and services and indeed Irish workers must be given opportunities to participate in such activities and I will continue to do so.
The additional benefits arising from the discovery of commercial quantities of oil and gas would be considerable, though difficult to quantify precisely at this stage. The direct impact would depend on aspects such as the size of the accumulation, duration of production, flow rates, the cost of development, operating expenses and market price. The economic benefits resulting directly from the natural gas produced from the Kinsale Head and Ballycotton gas fields illustrate the obvious importance of indigenous energy supplies. These benefits will reflect the employment in the services sector of engineering and technical industries, technical support industries, the import substitution effect and downstream economic activity.
