Our offshore potential neglected by government

Your editorial of Monday, Oct 15 asked who would benefit from the oil drilling.

On the 20th anniversary of the announcement of the revised licensing and fiscal terms for Ireland’s offshore hydrocarbon exploration and production, the resounding answer is the oil-and-gas industry, and certainly not the people of this island.

Notwithstanding belated changes in recent times, successive governments have failed to address or understand the long-term potential of our offshore hydrocarbon resources.

The government’s determination, following its ‘fall’ in 1992 and during its last few weeks in office, to press ahead with major changes to the 1975 fiscal and licensing terms, most of which were outlined in your editorial, was the result of intense industry lobbying.

Crucially, these changes also dismissed the involvement of the State as a viable option in the development of our offshore hydrocarbon resources.

Despite these changes, in subsequent periods a number of approaches were made to Government agencies, and to politicians at the most senior levels, to consider the exploration, production and development of West Coast Frontier licences (which were awarded in 1993) on a production-sharing basis with little or no up-front cost to the State.

Despite strong efforts, our government failed to grasp these rare opportunities.

What a pity.

Unlike the remaining vast potential of the 20-year duration frontier licences in the Erris, Slyne and Rockall troughs, which brought about the 1992 terms, any such opportunities are now long gone.

Today, we remain very much the poorer for our governments’ continuing intransigence and lack of vision in respect to our hydrocarbon resources.

Mike Cunningham

(Former director Statoil Exploration Ireland)

Castlebar

Co Mayo