asked the Minister for Energy the latest estimates of recoverable (i) oil and (ii) gas deposits (a) in the Celtic Sea (b) in the Irish Sea and (c) off the west coast.
Ceisteanna—Questions. Oral Answers. - Recoverable Oil and Gas Deposits.
14.
The latest estimate of recoverable reserves for the Kinsale Head gas field, which is to date our only commercial oil or gas discovery, is 1.45 trillion cubic feet.
Other gas discoveries have been made in the Celtic Sea and oil accumulations have been discovered in both the Celtic Sea and the Porcupine Basin off the west coast, but none of these has so far been deemed commercial by the companies concerned and estimates of recoverable reserves have not been announced. Marathon's discovery of gas last month on block 48/20 off the Cork coast is being assessed further by appraisal well drilling. While very encouraging, it is too early yet to estimate recoverable reserves.
While all information relating to these discoveries, including estimates of recoverable reserves, in many cases is available to my Department, I am not at liberty to disclose this information until such time as a declaration of commerciality and an announcement of estimated recoverable reserves is made by the operating company in each case.
There have been no discoveries of oil or gas in the Irish Sea.
Does the Minister have any approximate figures for the latest discovery by Marathon in block 48/20 to which he refers in his reply?
Yes, 29 million cubic feet per day.
May I ask how that compares with the original Kinsale Head gas field?
It would not be anything like as significant as the original find. The problem is that the original find took on a completely different complexion after further assessment. One must wait.
How long does the Minister expect it will take before we have confirmation of the actual potential or output of that field?
Under the terms of the licence, as far as I can recall, companies have approximately two years to declare commerciality, or otherwise. That is the legal or statutory requirement. It would be unusual if the company were to delay that long. Since drilling which is going on at present would appear to be aimed at assessing the full potential of the most recent find, I would expect a decision in relation to its commerciality to come fairly soon thereafter. The closeness of this find to the existing Kinsale Head gas field adds to its commercial potential in that it would not require a new head works, is only 8 km, and could be linked into the existing field on the sea bed.
Did I understand correctly that the Minister said he had not yet been advised by any of the other exploration companies beyond Kinsale Head of their estimated finds? Could he explain to the House why this is so? Would he agree that this is an unusual position, that it leaves the Minister in an extremely weak position in terms of planning and knowing how this whole area of our resource is progressing and what its potential is?
I think what I said was that the other areas were not deemed to be commercial. Estimates have been given on the reserve. For instance, the oil in the Porcupine Basin is at such a depth that current technology in relation to the extraction of the oil has not been able to satisfy the commercial criteria for a find of that kind.
Secondly, the international oil price at its current level, and from my own and the national point of view I would hope it would stay at that level, probably presents some problems for companies where oil is in what we call expensive waters, in determining its commerciality, or bringing it on stream. There are physical problems as well as commercial ones in this regard. It is not a question of leaving the Government at a disadvantage. We understand the problems that exist.
Accepting that an individual company may well have commercial difficulties in realising a potential find, I presume that in all these licences available to companies there are revocation clauses if the Government are not satisfied that the companies are moving with speed. It appears that the Minister is relying on company by company information, as opposed to any independent source of information.
Yes.
From what I understood the Minister to say earlier, he is not getting annual returns from the companies.
Yes.
It appears from what the Minister is telling us that he is under a considerable disadvantage in terms of assessing what is really going on in this area.
I am sorry if I did not make myself clear. There is a requirement on the companies to give very detailed information to the petroleum division of my Department, not on a monthly, bi-monthly or annual basis but sometimes on a 24 hour basis on, for instance, seismic data. The companies are obliged to pass on these details, so there is no question of the Department of Energy and their petroleum division not knowing exactly and precisely what is happening. I assure the Deputy on that front. I have gone to some length to look into all these arrangements in recent times and I am quite satisfied that there is no area for doubt.
I call on Deputy Pat O'Malley for perhaps a final question.
The Minister indicated that while he has certain information, there are reserves, for instance in deep waters like the Porcupine Bank, which are not commercially viable. I think he explained that they are not commercially viable by virtue of the fact that the international price of oil at this time may not be sufficiently high to make them commercially viable. Has the Minister any indication from any source as to what level the international price of oil would have to reach before those reserves become extractable? This is an important factor, given that the Minister has used it in his argument as to why these reserves have not been exploited. If they are dependent on international oil price factors, he must have some indication as to what level the international oil price would have to go to before the reserves are commercially viable.
He would be the best advised Minister in that case.
This is the problem, when you are trying to be helpful. In helping to solve the Deputy's problems, I continue to create problems for myself.
Not a typical ministerial position.
Is it unusual? Deputy O'Malley conveniently forgot in his question to refer to the first part of my answer.
The technical aspects.
Correct. You can look at oil development in any part of the world. A find in the Porcupine Basin now so distanced from any other infrastructure possibly could be dealt with if there were a network of infrastructure in that area. The first matter is the technical question and then the infrastructural question in dealing with the find. As far as trying to tell the House what price oil would have to be before there would be commercial considerations——
It is a relevant factor, surely.
Of course, it is relevant, except that the person who would be able to answer a supplementary question and give that information would probably have a different job from mine.
The Minister is in possession of more facts than I am. That is why I ask.
(Interruptions.)
Order, please. I call Question No. 15.