asked the Minister for Transport and Power if he is satisfied that oil and oil products are in sufficient supply in storage to comply with EEC directives on this matter.
Ceisteanna—Questions. Oral Answers. - Oil Reserves.
27.
Prior to 1st January, 1975, the level of our national oil reserves was adequate to meet the reserve requirement of the EEC of 65 days. Since 1st January, 1975, however, member states of the EEC are required to hold a minimum of 90 days' reserves of oil in lieu of the previous minimum of 65 days. This country, in common with a number of other EEC member countries, is not at present in a position to comply with the increased obligation but my Department are in consultation with the interests concerned with a view to the formulation of a programme aimed at reaching the 90 day level as soon as possible.
What is the volume in tons of the 65 days' stock held on 1st January?
Of what type of oil?
All types of oil.
Does the Deputy mean crude oil, gas oil, fuel oil or petrol?
The oil capacity which must be held under EEC regulations.
I have not the figure here but I can get it if the Deputy wants it. It would be a help if the Deputy would specify the type or types he wants.
Does that include the 10 per cent held at Bantry?
Yes.
How long does the Minister anticipate it will take to make arrangements to be able to hold the 90 days' supply?
It will take quite some time yet. The EEC have asked that countries who have not complied with regulations should be in a position to do so on 1st July next. I doubt if this country or a number of other countries will be in a position to do so on that date but we will do it as soon as possible afterwards. We are engaged in bilateral negotiations with other countries to arrange to have the holding of stocks for us by them and by them for us in this regard. These are lengthy and detailed discussions and will take a number of months yet.
I take it that to comply with the EEC directive a considerable amount of new storage facilities will have to be built. Where does the Minister envisage that they will be built?
There are discussions going on with interested parties about this at the moment.
Will they be erected in conjunction with a new oil refinery?
If a new oil refinery is built here—there is a prospect of a new one being built—one of the conditions attached to it by my Department or the Department of Local Government would be that such storage would be available at that refinery. The directive I signed last November put the onus on the importers and made consumers hold the stock. An oil refinery in this regard would be an importer under that directive.
Does the Minister anticipate that in the near future, or before 1st July, that a decision will be made about the new oil refinery here?
I could not say.
Would the Minister not agree it would be desirable that a decision be made to start a second refinery as soon as possible?
That is a separate matter.
I would need a lot of time to answer that question. There is roughly 15 per cent to 20 per cent oversupply of refining capacity in Europe at the moment. Therefore the people with the know-how and the capital to establish refineries are not as enthusiastic as they were two years ago in this regard.
Our refining quota is less than 50 per cent of our capacity. Would the Minister not agree that it is in the national interest that we should be able to cover our full consumption?
On balance, I would. The minimum size of a refinery nowadays is reckoned to be twice the size of the existing refinery here. Therefore to build a refinery of that size we might not necessarily find the export outlets for the amount which, after refining, we would produce over and above our wants. From a commercial point of view, the entrepreneurs would go ahead with the refinery and the sums might not come out right.