Dáil Éireann Debate, Tuesday - 23 April 2013
410. Deputy Brendan Griffin asked the Minister for Communications, Energy and Natural Resources the estimated value of the pre-oil extraction industry here in recent years; if he has plans to develop this industry; and if he will make a statement on the matter. [18259/13]
View answerThe Irish Offshore Operators Association estimate that in the region of €3 billion has been spent by the oil industry on exploration offshore Ireland and I understand a not dissimilar amount will have been spent on bringing gas from the Corrib field to the Grid. While much of the expenditure will have related to drilling rigs and seismic vessels, it also relates to expenditure on support and supply vessels and other services sourced at a local level, and the Corrib project has supported in the region of 1,000 direct jobs for several years.
The principal future return to Ireland from successful exploration will be through tax paid on profits from petroleum production. There will also be a secondary benefit in terms of economic activity generated by exploration and more particularly development and production projects. The main factor that will influence the development of the industry is successful exploration. The oil and gas potential of the Irish offshore is largely unproven and is likely to remain so until there is a significant and sustained increase in the number of exploration wells drilled. To this end my Department encourages exploration investment through an active and targeted promotion campaign, regular licensing rounds and by supporting petroleum research projects that deepen knowledge of the petroleum potential of the Irish offshore. Maintaining an appropriate fiscal regime is also critical to attracting this much need exploration investment to Ireland.
