IRELAND - AT THE END OF A LONG LINE

Ireland’s gas consumption is steadily rising. In the absence of indigenous sources the bulk of our gas needs to be imported over long distances via the UK, which itself is now importing gas.

Ireland is therefore at the end of a very long supply chain, which often originates in far away countries, such as the former states of the Soviet Union. Without reliable indigenous sources of gas Ireland will become increasingly vulnerable to potential disruptions to its energy supply and higher and more volatile imported gas prices.

The challenge to the Irish offshore industry is to provide supplies of gas, which are secure, abundant and competitively priced. This will support economic and social development in Ireland, help us meet our environmental targets and make a significant contribution to the economy.


THE IRISH OFFSHORE INDUSTRY - MAKING A VALUABLE ECONOMIC CONTRIBUTION

To sell in the Irish market, indigenous gas will always have to be priced competitively against the cost of imported gas. As the market develops and more discoveries come on stream, price competition is likely to increase, especially if
Irish gas production exceeds national demand. More competition will benefit the Irish economy and Irish consumers.

The offshore industry in Ireland is making a valuable contribution to the Irish economy. Since 1970 expenditure on offshore exploration has exceeded 2 billion euro and of this figure over 30% has been direct expenditure in Ireland. The members of Irish Offshore Operators’ Association (IOOA) recognise the aspirations of Irish suppliers to avail of opportunities in the offshore industry. It is the policy of IOOA members to afford full and fair opportunity to qualified suppliers to compete for the supply of resources and services to IOOA members and their contractors.

The IOOA works closely with FÁS, Ireland's National Training and Employment Authority, to maximise opportunities for local employment. As the industry grows further, so will the number of jobs. The Irish offshore industry is making a significant positive contribution to regional economies, in particular off the south and increasingly the west coast of Ireland.

Members of the IOOA service their operations out of Irish ports and airports. As a consequence Cork and Carrickfin Airports serviced 772 additional aircraft in 2003 and in the same year the harbours at Killybegs and Cork saw over 200 additional vessel movements, directly related to offshore activity. With the anticipated increase in activity further additional business is expected.

In addition to reducing Ireland’s dependency on foreign energy supply and helping the country meet its environmental obligations, the Irish offshore industry is making a valuable contribution to our economy.