Go west (and make Shell go offshore)

by Gyro Tue Jan 17, 2006 18:00

Our government appears to be the only one in the world that refuses to invest in the exploitation of its oil/gas resources. It has been known since the 1960-70s that there were rock bearing hydrocarbons off our shore.

Our Dublin government has a deep rooted blockage when it comes to investing in substantial profit making ventures along the West of Ireland coastline. What we had was massive emigration instead of exploiting our fish, gas, oil stocks. What would you expect from an authority that could not even handle "Floozie in the Jacuzzi". Even though we are an island nation, we have not developed a shipbuilding enterprise. In fact anything to do with water is a bête noire i.e. shipbuilding, oil, gas, Berti Bowel, leakages in the Port Tunnel, the above Floozie. Maybe this is unfair, they do wash their hands!

They have such poverty of thinking that the only thing that they can do is to stick West of Ireland protesters in the slammer! The people along our coastline want to engage in enterprises that generated profits and taxation as well as their distant cousins in the East. Oil or gas would now be flowing if we Irish took some of the risks of investment, rolled up our sleeves and brought in the multinationals as equal partners; that way we could negotiate from a position of strength. It's the way, the world over! No one, nobody, no government gives away their oil or gas deposits.

by Séadna Mon Jan 16, 2006 14:30

Just to note that the safety report which was commissioned by the Government on the pipeline has not actually been completed - what was issued before Christmas was a draft, feedback was asked for, and they expect to publish the final report in January sometime. The draft report found that a lot of the work in QRA version F was technically incorrect, and where the draft report commented on the viability/safety of the design of the pipeline, it implied that the go-ahead could be given if a number of significant criteria and standards were adhered to, so although there is cynicism as to how the dept of marine may interpret the final report, in actual fact the draft report is highly critical of the pipeline design in terms of safety.

In regard to security of supply which John refers to, I would see the cutting off of gas by Gazprom to Ukraine as highlighting the importance of security of supply in terms of the lack of control which our government would have on supply from the Corrib field due to the terms under which they have granted Shell the exploration licence. There is no obligation for Shell to supply gas from Corrib to the Irish market at all, and if/when they do, it will be at the going market rate, which is what Gazprom was demanding from Ukraine, whereas they had been subsidising the cost of gas to Ukraine up until that point. To be anti-particular pipeline design for safety reasons does not equate being agains the exploration and delivery of gas to Irish homes in a safe way. You have been making such counterarguments on this site for over six months at this stage and still seem to fail to see this. It is the responsibility of our Government (via dept of natural resources) to ensure that there is security of supply from any finds off our coasts, and unfortunately they have given the exploration companies carte blanche to do as they wish with no obligation on the exploration companies to serve Irish needs first and foremost.

Furthermore, it is untrue to say that only 2 relatively small gas fields have been found off the Irish coast.

Why do you say that at some point in the next few years there is going to be at least temporary interruption to Ireland's gas supplies from abroad? How do you know? How is this the fault of the Irish citizen?

by John Mon Jan 16, 2006 13:57

The only significant thing to have happened in recent months that is relevant to this dispute was Russia's threat to reduce gas supplies to Western Europe and Ukraine. This threat illustrates Ireland's vulnerability. Clearly we should encourage maximum exploration of Irish waters and proceed with the development of any oil/gas fields found as quickly as possible.Since there are no public companies in Ireland that have the slightest knowledge of or experience of exploring for oil/gas miles offshore and in deep deep water, this requires the active participation of multi-national companies like Shell, BP and others. The actual tax terms agreed with these companies are a business matter which, as in any business deal, should depend on circumstances. Up until now billions have been spent on exploration in Irish waters and only two relatively small gas fields have been discovered. This is a very poor return by North Sea standards. Until that changes there is no alternative but to allow very generous exploration terms. If we don't, no one will be interested in exploring Irish waters. That was the situation in the late 80s and early 90s. Imposing the same tax rates at this stage as those countries, in whose waters hundreds of oil-gas fields have allready been discovered and brought to production, is absurd and the sort of thing that only socialists with no experience of business could suggest. If scores of oil/gas fields are eventually discovered in Irish waters, then the tax rates on such discoveries can be increased but not before. At some point in the next few years, there is going to be at least temporary interruption to Ireland's gas supplies from abroad and lots of people will go without heating in their homes for days or even weeks. When that happens your campaign will collapse.