Launch of Forfás Oil Dependency Study
Forfás today (Tuesday 4 April) published its report “A Baseline Assessment of Ireland’s Oil Dependence: Key Policy Considerations.” This report examines the extent to which the Irish economy is vulnerable to an oil production peak scenario and the policies required for preparing for such an event.
Recent developments in the global oil industry have resulted in many countries having to evaluate their overall dependence on oil as a key input to their economy. Threats to security of supply, increasing global demand, slowing rates of new oil discoveries and rising oil prices have become major concerns globally. The concept of peak oil, a situation whereby world oil production reaches a point where it can no longer be increased, has become ever more important in recent years.
The report outlines that, while the timing of such an event is widely debated, the potential problems that could accompany it are well known.
Speaking on the launch of the report, Martin Cronin, Chief Executive, Forfás commented, “The high probability that a supply of cheap oil will peak over the next 10 to 15 years, poses a serious challenge for the global economy. As peaking is encountered, liquid fuel prices could increase dramatically and governments, businesses and economies could face significant economic and social change. Ireland is more dependent on imported oil for our transport and energy requirements than almost every other European country and it will take up to 10 years to significantly reduce this dependence. It is essential that we now begin to prepare for such a challenge.”
Full report (PDF 369-KB)
“Forfás is the national board responsible for providing policy advice to Government on enterprise, trade, science, technology and innovation in Ireland.” (About Forfás)
The report seems to have gotten good coverage in the Irish media:
Forfás report says Ireland among the most vulnerable countries to a peak oil scenario
Finfacts
Forfás, the Irish Government’s agency responsible for providing policy advice on enterprise, trade, science, technology and innovation today published its report A Baseline Assessment of Ireland’s Oil Dependence: Key Policy Considerations. This report examines the extent to which the Irish economy is vulnerable to an oil production peak scenario and the policies required for preparing for such an event.
Recent developments in the global oil industry have resulted in many countries having to evaluate their overall dependence on oil as a key input to their economy. Threats to security of supply, increasing global demand, slowing rates of new oil discoveries and rising oil prices have become major concerns globally. The concept of peak oil, a situation whereby world oil production reaches a point where it can no longer be increased, has become ever more important in recent years.
(4 April 2006)
Ireland too dependent on imported oil – report
RTE Business
A Forfas report today 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 million tonnes 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.
(4 April 2006)
Wind power warning as oil prices soar
Breaking News (Ireland)
The Government was tonight urged to put wind power top of the energy agenda after a state agency warned Ireland may need a nuclear power plant to its electricity demands.
The Irish Wind Energy Association called on authorities to prioritise renewable sources after Forfas warned Ireland was facing a liquid fuel crisis in the next 15 years.
Tim Cowhig, IWEA chairman, said the study raised serious concerns about the security of supply and price stability.
“We call on the Government to address this issue as a matter of urgency if all the hard work of the Celtic Tiger years is not to be wasted. Renewables, especially wind, can significantly reduce Ireland’s dependency on oil,” he said.
(4 April 2006)
Also posted at Irish Examiner and Evening Echo.
Ireland may need nuclear power – Forfás
RTE (Ireland)
The State agency, Forfás, has warned Ireland will face a liquid fuel crisis in the next ten to 15 years and may have to develop a nuclear power station to supply its electricity needs.
Forfás, which advises the Government on the enterprise, trade and innovation matters, has said that Ireland is now more heavily dependent on imported oil for our energy requirements than almost every other European country.
In a new report, the agency warned that the world is approaching a point termed ‘Peak Oil’, where global oil production can no longer be increased.
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This will cause very rapid increases in oil prices and Ireland, according to the report, is one of the most vulnerable countries in the world to the crisis that would result.
(4 April 2006)
