Page 10 - Euroil Week 50 2019

EurOil POLICY EurOil
Irish gov outlines upstream policy
IRELAND
The government is yet to say how oil and gas sites will be differentiated.
IRELAND’S government has clarified its posi- tion on the offshore oil and gas industry, publish- ing a new policy paper on December 18.
The government reiterated its continued sup- port for domestic gas production, recognising gas “as playing a critical role” during the energy transition.
“A secure and stable energy supply is essen- tial to underpin the continued functioning and future development of Irish society,” the paper stated.
Ireland relies on Corrib and several other off- shore gas fields to cover around 60% of its needs. Without future exploration, the industry has said Ireland will be unable to replenish this supply, resulting in larger imports.
Based on advice from its climate council, the government repeated its view that “future explo- ration for oil should end, as it is incompatible with a low carbon future, and the focus should instead be on natural gas as a transition fuel.”
Existing licences will not be affected by the changes and nor will licences with applications and authorisations in place before September 23 2019.
Ireland’s oil and gas sector has faced uncer- tainty for years, with the government coming under increasing pressure to limit the issue of
new licences. The industry was rocked in Sep- tember by an announcement from Irish PM Leo Varadkar that Ireland would stop issuing explo- ration permits for oil. But the government is yet to say how this policy of promoting the search for gas while banning oil exploration will work in practice.
“There are complexities involved in focus- ing on natural gas exploration to the exclusion of oil and it is acknowledged that there is no single scientific method that can accurately predict whether gas or oil (or water) will be present below the seabed prior to drilling a well or indeed prior to the issuing of an exploration authorisation,” the paper said. It added that most of the country’s remaining oil and gas potential was at sites where both fuels are found.
Even so, the Irish Offshore Operators’ Asso- ciation (IOOA) welcomed the paper’s release, stating it would help end uncertainty.
“Ireland finally has a clear pathway for com- panies who wish to explore off the coast, ending two years of policy uncertainty and regulatory delay,” IOOA CEO Mandy Johnston said. “The government has listened to our arguments and finally accepted that the country needs offshore gas, and will continue to do so for decades to come.” ™
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w w w . N E W S B A S E . c o m Week 50 19•December•2019