Report warns Ireland is too dependent on imported oil

04-04-06

A Forfas report says that Ireland is more dependent on imported oil for our transport and energy requirements than almost every other European country. It also states that it will take up to ten years to significantly reduce this dependence.
The report -- A Baseline Assessment of Ireland's Oil Dependence: Key Policy Considerations -- says that Ireland consumed nine mm tons of oil in 2004, an amount that has doubled since 1990. The country was ranked third highest among the EU 25 countries in terms of oil consumed per capita in 2002.

Electricity generation and transportation are the two main factors for the country's high oil dependence. The country has the sixth most dependent electricity generation system of the entire European Union. The amount of oil used for transportation in Ireland tripled between 1972 and 2002, which leaves us consuming at least 50 % more per capita than the average of the EU.
The Forfas report says that recent developments in the global oil industry have resultedin many countries having to evaluate their overall dependence on oil and the effect on their economies. Threats to security of supply, increasing global demand, slowing rates of new oil discoveries and rising oil prices have become major concerns.

The concept of oil peak -- where oil production reaches a point where it can no longer be increased -- has also become ever more important in recent years. The findings of the report suggest that Ireland needs to develop a national strategy to prepare for the challenge of peak oil. It urges pro-active measures including the possibility of developing nuclear energy as a more long term solution.
The report urges the introduction of initiatives to reduce the use of oil in transportation, by bringing about the replacement over time of the existing stock of vehicles with more fuel efficient ones and the provision of alternative modes of transport than run on electricity rather than petrol related fuels. The potential use of biofuels for transportation should also be investigated.

Options to address supply concerns that may arise in the context of peak oil should also be assessed. These include expanding domestic oil storage capabilities and making deals with oil producing countries that continue to have a surplus of production relative to their domestic requirements.
“The high probability that a supply of cheap oil will peak over the next ten to 15 years poses a serious challenge for the global economy,” commented CEO of Forfas, Martin Cronin. “As peaking is encountered, liquid fuel prices could increase dramatically and governments, businesses and economies could face significant economic and social change,” he added.

Source: Thomas Crosbie Media