Ireland's oil and gas industry

[Catmalojin]

More press coverage:

1 February 2012 Last updated at 08:32 GMT
Fermanagh shale gas 'could supply Northern Ireland'


By Jim Fitzpatrick
Economics and business editor

There could be enough natural gas trapped within shale rock in County Fermanagh to supply all the gas Northern Ireland needs for decades.

The claim has come from the exploration company with a licence for the area.

Tamboran Resources has spent the last year analysing surveys and taking rock samples.

It now says preliminary results show there could be enough gas to guarantee security of natural gas supply for Northern Ireland over 50 years.

The region would even become a gas exporter, they claim.

"We're 100% certain there is gas there. We're 90% certain that we'll get it out in the sort of quantities we're talking about," said environmental director Tony Bazley.

He said the discovery could lead to 600 direct jobs by 2025 and the company will seek engineering solutions and other services locally which could lead to another 2,400 jobs.

Tamboran also projects tax revenues for the government of up to £6.9bn.

But the most significant claim is that the shale gas deposits may be large enough to provide Northern Ireland with all the gas it needs for decades, even becoming an exporter.

Currently all Northern Ireland's natural gas is imported.

In the United States, a shale gas production boom has reduced natural gas prices by half to a 10-year low.

The process used in capturing the gas from the shale rock is hydraulic fracturing, known as fracking.

It involves drilling horizontally into the rock, forcing sand and water underground to cause tiny fractures that release the gas from the shale.

It is a not a new method but has only become economically viable due to the increased cost of gas in recent years.

Minor earthquakes

However it is a controversial process. In November another company, Cuadrilla, admitted that its drilling was the "likely cause" of minor earthquakes in Lancashire.

And in the US, where the process is most advanced, there have been cases of water pollution linked to fracking.

Tamboran said it would minimize any such risks with a seismic survey to give a detailed three-dimensional picture of what it's drilling into and it also says it will not use any chemicals in its fracking process.

Chemical solutions are often added to lubricate the drilling process and give extra power to the pumped water at great depths. But Tamboran said it would not be drilling deep enough to require any chemicals.

The company wants to proceed to a full environmental assessment before drilling two test holes.

If those test sites prove successful it hopes to convert them into production by 2015.

At any one time it could have up to three four acre sites producing gas. As one site becomes exhausted it is closed down and another opened elsewhere.

One of the economic advantages of the Northern Ireland deposits is the relative proximity to the gas pipeline and the apparent depth of the shale.

Last December, Northern Ireland Assembly members called for a stop to fracking.

They backed a call for a moratorium on onshore and offshore exploration and the withdrawal of licences by 49 votes to 30.

Sinn Fein's energy spokesman, Phil Flanagan, said there was a "huge groundswell of public opposition to these plans".

He questioned the length of time jobs would be created for and the effect drilling would have on the local environment.

"The real potential for job creation and economic growth in Fermanagh and Leitrim surely lies in the development of clean, renewable sources of energy," he said.

"The fact that many other countries have moved to slow down or even stop the use of fracking should be a warning call to ministers on this island.

"We should at the very least follow their approach and call a halt to this process until all the relevant environmental and economic consequences have been taken into consideration."

BBC News

Australian explorer bids to invest €7bn in Leitrim gas field
By Peter Flanagan
Wednesday February 01 2012

THE good times could be coming to Leitrim after an Australian explorer said it wants to invest €7bn in a natural gas field it says it has found there.

Tamboran Resources said a feasibility study confirmed a "substantial shale gas field" in Leitrim which could create 600 full-time jobs and up to 2,400 indirect jobs if it is developed.

Tamboran said it hoped to spend €7bn developing the field, which could deliver "substantial" natural gas volumes for the next 40 years. The full analysis will be published by the end of this year.

Tamboran is focused on the northern area of Leitrim and it has also been granted an exploration licence in an adjacent area in south-west Fermanagh.

According to the company, the field potentially has 2.2 trillion cubic feet of shale gas; which could lead to tax revenues of up to €4.9bn.

Company chief executive Richard Moorman said the project could be "a potential energy and economic game changer for Ireland".

"Realising these resources would secure gas supply for decades, protect consumers and businesses from market uncertainty and negate the risk of being over-dependent on unpredictable external supplies," he claimed.

Natural gas from shale has become popular in North America, but there have also been concerns expressed about the method used to extract the gas.

Gas is extracted from shale using a technique known as "fracking", which sees water, sand and chemicals injected into the rock at high pressures to release the gas.

That technique has led to concerns about the contamination of the local water supply, among other issues. Yesterday, however, Tamboran said it wouldn't use chemicals in Ireland.

Subject to licensing, Tamboran believes exploration drilling could commence by 2014 with the commercial development "a few years later".

- Peter Flanagan

Independent.ie

[JD47]

How will this help Ireland economicaly.
How much money will the state make out of this a year.
I still cant make my mind up about it yet.

[Catmalojin]

Originally Posted by JD47

How will this help Ireland economicaly.
How much money will the state make out of this a year.
I still cant make my mind up about it yet.

According to the article, the profits of the exploitation of the gas would rake in around €4.9 billion. Presumably this is over the life of the entire project.

Though, don't forget that the jobs provided would increase the income tax take, lower unemployment benefit payments, and also lead to increased VAT receipts, among other things. All in a relatively deprived region of the country, as well.

That said, I still haven't made up my mind about it, either.

[JD47]

I am up for it financially but not at the cost of what is at risk.
I really cant make up my mind about it.

[Catmalojin]

Yeah, it's a pretty tough call, alright!

A press release, from the Department of Agriculture, Food and the Marine, which is kind of related to the thread:

Coveney opens Public Consultation Process on How to Harness Ireland's Ocean Wealth

Simon Coveney TD, Minister for Agriculture, Food and the Marine, today launched a public consultation process on how to harness the potential of Ireland's vast marine resource to tap into a trillion euro global market for marine products & services (including seafood, tourism, shipping, oil and gas, renewable ocean energy and new applications for health, medicine and technology).

Launching the public consultation 'Our Ocean Wealth', Minister Coveney said, "We need to change the way we in Ireland think about the sea and look for new opportunities to harness the potential of our 220 million acre marine resource. This government is determined to generate the momentum to drive forward a new era of sustainable economic development across the maritime sectors - we must avail of these opportunities to assist in our recovery. We want your help to shape our plan, to shape our future and to assist in our drive towards our nation’s economic recovery".

This public consultation represents a significant step in a process to develop an Integrated Marine Plan for Ireland and move from generating only 1.2% of GDP from this vast and diverse marine resource, which covers an area 10 times the size of Ireland's land mass.

Minister Coveney added "We need an Integrated Marine Plan to harness our ocean wealth, get the environment right for investment and use the potential of our marine economy to create jobs in a sustainable manner".

Get informed about the issues and join the debate at www.ouroceanwealth.ie

The consultation phase will be open until 31st March 2012 and it is envisaged that an Integrated Marine Plan will be published during summer 2012.

Date Released: 02 February 2012

[thebig C]

I guess, if its properly regulated and there is oversight then it could ultimately be positive. 600 jobs in Leitrim would lift the whole County!

Whilst I don't think you can just allow these companies to do what they want, I always feel alot of objectors to projects like this are just anti-everything! I'l bet they were the same crowd who are against the Corrib Gasfield, Dun Laoghaire seafront development, Highrise in Dublin etc etc!

[JD47]

Originally Posted by thebig C

I guess, if its properly regulated and there is oversight then it could ultimately be positive. 600 jobs in Leitrim would lift the whole County!

Whilst I don't think you can just allow these companies to do what they want, I always feel alot of objectors to projects like this are just anti-everything! I'l bet they were the same crowd who are against the Corrib Gasfield, Dun Laoghaire seafront development, Highrise in Dublin etc etc!

It would be good for the whole country.
I think the minister said that he wants an investagation or something like that to see if it is safe and to see what the out comes may be which in my opinion is the right move by the goverment.
4 billion added to the Irish economy would be great. I would take a gamble and invest some of that money in the wind power in the West or on the oil and gas off the West Coast.
Then give all the left over energy over to the UK and mainland Europe. That would get some money pumping into the economy and make a few jobs.

[thebig C]

Originally Posted by JD47

It would be good for the whole country.
I think the minister said that he wants an investagation or something like that to see if it is safe and to see what the out comes may be which in my opinion is the right move by the goverment.
4 billion added to the Irish economy would be great. I would take a gamble and invest some of that money in the wind power in the West or on the oil and gas off the West Coast.
Then give all the left over energy over to the UK and mainland Europe. That would get some money pumping into the economy and make a few jobs.

True, at least the surplus energy would be earning something for us.....even if it is only to guarantee jobs.

[JD47]

Originally Posted by thebig C

True, at least the surplus energy would be earning something for us.....even if it is only to guarantee jobs.

Lets hope all this gas and oil that is said to be ours will be found and we can get out of this financial mess.
Then we can all have a pint and laugh about the last few years and look to the future

[Catmalojin]

Originally Posted by JD47

Lets hope all this gas and oil that is said to be ours will be found and we can get out of this financial mess.

Oil and gas isn't the solution to our problems, it's huge structural reform that is needed within government and the wider economy. The state is spending way too much compared to what it takes in in tax, that's the main problem. This gap needs to be closed by properly thought-out and balanced measures, not a quick-fix from petroleum money.

In fact, finding a bonanza of oil and gas right now (the chances of which are tiny!) would probably be a disaster in terms of government policy in the long-term, as they'd give in to populist demands to keep the unsustainable state structures and policies we have in place from the increased revenues.

[JD47]

Originally Posted by Catmalojin

Oil and gas isn't the solution to our problems, it's huge structural reform that is needed within government and the wider economy. The state is spending way too much compared to what it takes in in tax, that's the main problem. This gap needs to be closed by properly thought-out and balanced measures, not a quick-fix from petroleum money.

In fact, finding a bonanza of oil and gas right now (the chances of which are tiny!) would probably be a disaster in terms of government policy in the long-term, as they'd give in to populist demands to keep the unsustainable state structures and policies we have in place from the increased revenues.

I dont think it would be a quick fix. The money generated would help the economy and its better then losing your job or not being able to feed your family. Yes the goverment need to sort this country out but I would rather strike oil now if it means keeping my job. If it means there is no more pay cuts then I think it is good. Then the goverment can fix this county and keep it safe for years to come.

[Catmalojin]

Originally Posted by JD47

I dont think it would be a quick fix. The money generated would help the economy and its better then losing your job or not being able to feed your family. Yes the goverment need to sort this country out but I would rather strike oil now if it means keeping my job. If it means there is no more pay cuts then I think it is good. Then the goverment can fix this county and keep it safe for years to come.

You clearly have more faith in the Irish government than I do!

I'm not saying that they definitely wouldn't do it correctly, but if you look at Irish governments' track records on long-term planning...

[JD47]

Originally Posted by Catmalojin

You clearly have more faith in the Irish government than I do!

I'm not saying that they definitely wouldn't do it correctly, but if you look at Irish governments' track records on long-term planning...

I am so sick of the lies the Irish goverments have told us down the years.
I think we just have to let them try their best at this point because there is nothing we can do about it.
I am afraid that if we found oil that they would waste the money in the wrong way. That is my hope of getting out of this recession. Finding oil. Its not a great hope I will admit that.

[Catmalojin]

From today's Irish Times:

Hogan rejects public inquiry into Dublin Bay oil drilling

LORNA SIGGINS, Marine Correspondent

Sat, Feb 04, 2012

MINISTER FOR the Environment Phil Hogan has rejected a call by Tánaiste Eamon Gilmore and others for a public inquiry into a Dublin-based exploration company’s foreshore licence application to survey and drill for oil and gas in Dublin Bay.

Mr Hogan has said that as the application by Providence Resources for survey and drilling work six kilometres off Dalkey Island was the subject of public consultation, he did not consider a public inquiry “necessary”.

Tánaiste and Labour Dún Laoghaire TD Eamon Gilmore said earlier yesterday that Mr Hogan should exercise his right to hold an oral hearing under the foreshore legislation. Last month, the Green Party and a number of residents in the Dalkey area also called for an inquiry.

Speaking in Galway yesterday, Mr Gilmore acknowledged that a “couple of wells” had been drilled in Dublin Bay previously, but there were a “lot of issues” relating to the current application.

Four exploratory drilling projects have been carried out on the Kish Basin over the past 35 years, as listed on the Department of Energy’s petroleum affairs division database.

The Department of the Environment confirmed yesterday it had received a “large number” of submissions on this latest plan by last Thursday’s closing date.

The number of submissions was still being assessed, a department spokesman told The Irish Times .

Providence Resources and its partners, Star Energy Oil and Gas Ltd, hold an option over eight “blocks” in the Kish Bank Basin, and are seeking the foreshore licence to establish whether there is oil or gas present in commercial quantities.

Mr Gilmore attended a public meeting in Dalkey on January 23rd, and supported a call by a majority of some 300 people present for a public inquiry into the licence application.

Elaborating on this yesterday, Mr Gilmore said the oral hearing option could be exercised by Mr Hogan, as Minister responsible for the 1933 Foreshore Act. The only such oral hearing held to date under the legislation took place in 1991 over plans for a marina in Dingle, Co Kerry.

Providence Resources and partners have said the planned seismic survey, site survey and exploration drilling “will be at a significant distance from any designated area of environmental or ecological interest”.

In a written reply on Thursday last to Dáil questions tabled by three Independent TDs, Richard Boyd-Barrett, Joan Collins and Seamus Healy, Mr Hogan said the application had been referred to standard prescribed body consultees, including the Marine Institute, the Marine Survey Office, the Sea Fisheries Protection Authority, Inland Fisheries Ireland and the National Parks and Wildlife Service, as well as other bodies

“Given the nature of the application, the fact that it is the subject of a public consultation process, and that the decision and related documentation, including the submissions received under the public consultation process, will be published on my department’s website, I do not consider that a public inquiry is necessary,” Mr Hogan said.

© 2012 The Irish Times

Also in the news today:

Anti-fracking campaign to meet in Fermanagh
04/02/2012 - 09:24:20

The first all-Ireland meeting of anti-fracking campaigners takes place in Enniskillen at 1pm this afternoon.

Activists will demonstrate against plans by Australian firm Tamboran Resources to start drilling for gas in the north-west by the year 2014.

The company has claimed that with an investment of €6bn, it could harvest 40 years' worth of gas in Leitrim and Fermanagh.

John Cronogue, who is helping to organise today's protest, warns that fracking would pollute the River Shannon, the most important water river basin on this island.

BreakingNews.ie

[JD47]

They are to discuss Ireland's gas and oil tonight on The Frontline. Should be good.

[odlum833]

Pat Rabbitte will be on so. I remember that aussie bird on tv3 a few years back always use to call him "Pet" Rabbitte - think it annoyed him.

[JD47]

Originally Posted by odlum833

Pat Rabbitte will be on so. I remember that aussie bird on tv3 a few years back always use to call him "Pet" Rabbitte - think it annoyed him.

Cant wait for that tonight.

[Catmalojin]

I suppose for the sake of 'balance' they'll either have a Shell to Sea representative or Richard Boyd-Barrett.

Drinking game - every time they mention current government cutbacks, the 'selling off' of our national resources, the 'ten billion barrells' of oil we don't have or Norway, drink.

Some news today:

Leitrim Co Co ask Minister to forbid fracking
Updated: 20:59, Monday, 6 February 2012


Two motions proposing to amend the County Development Plan to ban fracking were not voted on

Leitrim County Council has passed a motion to ask Minister for the Environment Phil Hogan to ban hydraulic fracturing or fracking in the Republic of Ireland.

The council will write to Mr Hogan asking him to ensure that the practice of hydraulic fracturing be excluded as a method of extracting gas and oil.

Two motions before the councillors proposing to amend the County Development Plan to ban fracking were not voted on.

Instead, it was agreed to hold a special meeting to discuss Leitrim's County Development Plan and the possibility of amending it.

Councillors accepted that the plan was aspirational and that any change would also be aspirational.

However, they stressed that a strong message should be sent out that there are serious concerns about the process of hydraulic fracturing and the potential effects it will have on the country's environment, tourism and agriculture.

Director of Service for Planning, Community and Economic Development Joseph Gilhooly said that changing the County's Development Plan to ban or put a moratorium on fracking would be "fraught with technical and legal difficulties".

County Manager Jackie Maguire said that such a change would involve substantial research into alternative wording.

Ms Maguire said that the process would require public consultation and would take in the region of eight months.

Story from RTÉ News:
http://www.rte.ie/news/2012/0206/fracking.html

[thebig C]

Originally Posted by Catmalojin

I suppose for the sake of 'balance' they'll either have a Shell to Sea representative or Richard Boyd-Barrett.

Drinking game - every time they mention current government cutbacks, the 'selling off' of our national resources, the 'ten billion barrells' of oil we don't have or Norway, drink.

Some news today:

Glad I didn't play your drinking game.....I would have been wasted after 10mins! The Environmental lobby definately had the audience packed judging by the reactions!

Actually, I thought Pat Rabitte was very sensible......its decidedly odd when an Irish Government Minister is the most persuasive panelist.

[Catmalojin]

€14.5m spent on garda resources at Corrib site
Updated: 11:53, Thursday, 9 February 2012


Alan Shatter said the €14.5m cost was 'deeply regrettable'

The garda presence at the Shell refinery project at Bellanaboy in Co Mayo has cost just over €14.5 million in extra garda resources over the last six years.

Minister for Justice Alan Shatter said it was "deeply regrettable" that so many garda resources had been tied up at the site.

From 2006 to the end of last year, over €9m had been paid out in garda overtime and allowances alone.

€5m was paid out in travel, subsistence and other expenses.

Meanwhile, the State paid almost an extra €500,000 in extra employers' PRSI over the six-year period.

These figures do not include the basic garda salaries which the State would have paid during this period.

The figures were provided by Minister Shatter in response to a parliamentary question from Sinn Féin Deputy Peadar Tóibín.

The minister said he had been advised by the garda authorities that they were not in a position to provide projected costs in relation to future policing at the refinery.

Minister Shatter said although the level of resources involved was regrettable it was "absolutely necessary" due to the actions of some protesters, many of whom he accused of engaging in "protest tourism".

He claimed it was "scandalous" that some protesters behaved in a "self-indulgent way" at a time when many people in the country were under severe financial pressure.

He said policing at the Bellanaboy site required the expenditure of a substantial amount of taxpayers' money, which could be put to better use.

Shell began work at the site early in 2005, but by that summer it stopped after continuous protests.

Work resumed again in October 2006 and the level of protesters increased around that time, and accordingly so did the number of gardaí.

Story from RTÉ News:
http://www.rte.ie/news/2012/0209/corrib.html