Ireland's Resources Giveaway Continues

Thursday March 06, 2008 13:16

by netrebko

Ray Burke deals still being offered to oil companies

Yesterday, another four exploration licences were awarded to energy companies who want to exploit the natural resources off the west coast of Ireland. Estimates of the value of our resources vary, but the rising price of energy around the world would indicate that large amounts of money are at stake. The Department of Natural Resources released figures last May saying that there are at least 10 billion barrels of oil in Irish waters. There may be much more. Oil is currently valued at $104 per barrel.

In terms of royalties and returns for the people of Ireland, the terms of current deals are exactly the same as those agreed by Ray Burke and Bertie Ahern, back when oil was was considerably cheaper and Ireland was considerably poorer (and consequently needed all the investment it could get).

The current line from the Minister for Natural Resources, Green Party TD Eamon Ryan, is that Ireland needs to award these licences to these companies in the hope that we can reduce our dependence on imported energy.

What he doesn't point out is that by giving 100 per cent of the oil and gas away to the big energy companies, and not taking any royalty payments, and not having a state company holding a percentage stake in the oil and gas found in Irish waters, he's effectively exporting Irish natural resources to companies like Exxon, who are bound to sell it to the highest bidder.

In terms of security of supply, there is simply no benefit to handing over these licences to Exxon and the rest. There is no contractual obligation for these companies to sell these resources to anyone in Ireland. In case you think they might have difficulties getting the stuff out of the country, the Department of Natural resources has just announced that it is studying the possibility of building an oil interconnector pipeline to Britain (they can already export our natural gas).

People will no doubt remember that Minister Ryan announced changes to the tax arrangements for companies operating in Irish waters late last year. These changes were cosmetic, and many observers doubt that the oil majors, with their long history of "creative accounting" (witness Shell's famous reserves fraud scandal) will find it difficult to minimise the tax they might eventually pay.

What the Minister is failing to do is ensure a genuine stake for the people of Ireland in their own oil and gas reserves, and provide a sustainable and long term benefit for the people who live in Ireland. As it stands, these deals only benefit Irish people who are lucky enough to have shares in oil companies. You might think this wouldn't be of much interest to Green Party representatives, but you'd be wrong.

Excerpts from three relevant articles (with links to full pieces):

DUBLIN, March 5 - Ireland on Wednesday awarded four offshore oil and gas exploration licences to three groups, which included Exxon Mobil Corp., in a bid to reduce the country's dependence on imported fuels. The licences cover block areas totalling 4,963 square km in the Porcupine Basin, off the west coast, the energy ministry said.

Exxon Mobil, Providence Resources and Sosina Exploration received two licences.

Island Oil and Gas together with Supernova Ireland Resources received one licence to drill.

Separately, a bidding group comprising Providence Resources, Sosina Exploration and Challenger Minerals was also granted one licence.

Energy Minister Eamon Ryan, whose Green Party entered into a coalition government last year, said he hoped the permits would lead to the discovery and development of new resources.

"Currently 90 percent of our energy comes from imported fossil fuels," he said in a statement. "We need to reduce this level of exposure."

Read the rest of the article here: http://www.reuters.com/article/OILINT/idUSL0544429420080305

Ryan’s oil security review will cost government €224,000
Sunday Business Post
24 February 2008 By Dick O’Brien

Energy minister Eamon Ryan is spending almost a quarter of a million euro on a review of the security of Ireland’s oil supplies, which will include assessing the possibility of constructing an oil pipeline to Britain or continental Europe.

The €224,000 contract has been awarded to Texas-based energy consultants Purvin & Gertz, which will conduct the study in partnership with Dublin-based engineering consultancy Byrne O’Cleirigh.

One issue the consortium has been asked to examine is the cost and benefits of a possible oil interconnection to Britain or continental Europe. It has also been tasked with assessing possible pipeline distribution within Ireland, gauging refining capability and examining possible impacts of alternative liquid fuels.

Read the rest of the article here:
http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=IRELA...1.asp

Cuffe quits as Environment spokesman

RTE NEWS Tuesday, 10 June 2003 17:34

The Green Party TD Ciaran Cuffe has agreed to step aside as the party's Environment Spokesman.

The move comes following the controversy over Mr Cuffe's ownership of shares in a number of oil companies.

He will remain as the party's Justice and Law Reform spokesman.

Mr Cuffe, who represents Dún Laoghaire, announced his decision at a meeting of the Parliamentary Party in Leinster House this morning.

The Green TD inherited the shares from his mother three years ago.

The $1.3m share portfolio includes investments of almost $70,000 in six oil exploration companies.

Party leader Trevor Sargent, accepting Deputy Cuffe's offer to stand aside, said it was important to note that at all times Deputy Cuffe had been in full compliance with the law and all relevant regulations.

He described the incident as 'a lesson to all of us in the Green Party'.

Read the rest of the article here:
http://www.rte.ie/news/2003/0610/green.html