Fragility of gas supply highlighted

THE Irish Offshore Operators’ Association (IOOA), the representative body for the country’s offshore oil and gas exploration industry, has warned of the continuing fragility of gas supply to western Europe, and particularly Ireland.

Pointing to the fact that Kinsale Head and Seven Heads are the only producing gas fields in Ireland, the IOOA said if a serious interruption of imported supply should happen, only about 20% of the country’s energy supplies could be supplied from indigenous sources.

“The dispute between Russia and Ukraine in 2008, which culminated in the interruption of gas supplies, both to the latter country and to parts of Europe, reminded us, yet again, of the fragility of gas supply to western Europe and, most particularly, to Ireland,” the organisation warned yesterday.

“The immediate consequences for industry, essential services and domestic supply would be very serious. It is against this background that we must review exploration and production offshore Ireland this year and beyond.” The IOOA has said that the 2009 picture has been clouded by the recent steep decline in oil prices and by the continuing scarcity of offshore equipment, particularly deepwater drilling rigs.

It added: “The price drop is no doubt welcome to consumers in the short term. However, it sends a contradictory signal in the light of the necessity to reduce global dependence on fossil fuels and to extend the lifetime of existing supplies.”