Supply of oil 'in extremely volatile state', according to National Oil Reserves Agency

An oil tanker in UAE watrers. IEA executive director Faith Birol told media at Dublin Castle that Europe faced a “very difficult” winter in terms of high prices caused by oil and gas supply volatility. File picture: Alamy

The supply of oil – responsible for half of Ireland’s energy needs – is in an “extremely volatile” state, the agency charged with emergency supplies has warned.

To increase resilience, the National Oil Reserves Agency (Nora) is moving away from storing emergency supplies with external providers and obtaining its own storage centres.

The agency says it has entered into long-term leases of three strategic facilities — two in Dublin, at Ringsend and Poolbeg, and one in Tarbert, Co Kerry.

Nora, operating under the aegis of the Department of Climate, Energy and Environment, has the task of ensuring Ireland meets its obligations under EU legislation and International Energy Agency (IEA) rules to maintain a minimum of 90 days’ stocks of oil for use in the event of an emergency.

Its 2025 annual report shows that, as part of efforts by the IEA to respond to fuel supply shocks caused by the war in the Middle East, Ireland’s stock was expected to fall by 10.5 days, bringing it to 79.5 days.

The EU presidency meeting of energy ministers on Tuesday heard the stock has since risen to 84 days.

IEA executive director Faith Birol told media at Dublin Castle that Europe faced a “very difficult” winter in terms of high prices caused by oil and gas supply volatility.

Ireland is particularly vulnerable to global energy price hikes, as 78% of its overall energy supply is imported, compared to the EU average of 57%.

Just over 50% of Ireland’s energy needs are made up of oil — all of which is imported — and around 30% is met by gas, 80% of it imported.

In his statement, Nora chair Frank Gleeson said the outbreak of military hostilities between the US and Iran on February 28 caused “significant volatility” and that the disruption to oil production and shipping around the Strait of Hormuz increased global energy price volatility and international trade flow constraints.

In March 2026, due to the significant disruption in oil flows, he said Ireland agreed to participate in the release of oil reserves proposed by the IEA.

He said Ireland’s share of the agreed 400 million barrels of oil to be released was 1.61 million barrels or approximately 200,000 tonnes.

He said this would cut Ireland’s oil stocks by around 10.5 days.

Mr Gleeson added: “The situation remains extremely volatile.”

The report said 64% of the oil stocks are located on the island of Ireland, the rest across four EU countries.

Unlike oil, Ireland has no national emergency gas storage facility, but one is planned for the Clare coastline by 2030, capable of holding seven days’ supply.