Dáil Éireann Debate, Tuesday - 8 February 2005
85 Mr. Noonan asked the Minister for Communications, Marine and Natural Resources the extent to which national oil reserves and storage are adequate to meet contingencies; and if he will make a statement on the matter. [3613/05]
View answer287 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the extent to which national oil reserves and storage are adequate to meet contingencies; and if he will make a statement on the matter. [3950/05]
View answerI propose to take Questions Nos. 85 and 287 together.
As a member of the International Energy Agency, IEA, Ireland is required to maintain emergency oil stocks equivalent to at least 90 days of net imports in the previous year. The EU imposes a similar requirement based on consumption. On 1 December 2004, the latest date for which comprehensive figures are available, Ireland's emergency oil reserves, whether held at home or in other EU member states, amounted to the equivalent of 110 days of net imports using the IEA methodology.
These stocks are made up of wholly owned stocks held in Ireland by the National Oil Reserves Agency, NORA, and industry-oil consumers equivalent to 70 days of stocks; wholly owned stocks held by NORA in other EU member states under cover of bilateral agreements equivalent to eight days of stocks; and rented stocks held by NORA in other EU member states under cover of bilateral agreements equivalent to 32 days of stocks. In the event of a significant global oil supply disruption, these reserves would be eked out over an extended period to supplement commercial supplies which would still be available in the normal course — albeit at a reduced level — to provide cover far in excess of their nominal duration. For example, if there were a 10% reduction in world oil supplies, a level of disruption unprecedented over the past four decades, then our current reserves would last for 1,100 days, that is, three years. They would last even longer if account is taken of the reduction in consumption which would be achieved by the demand restraint measures which would be triggered by a crisis of this magnitude.
