The IEA was established in the wake of the 1973 oil shock as an autonomous intergovernmental organisation within the OECD under the Agreement on an International Energy Programme (IEP). The IEP Agreement binds Participating Countries to take specific measures to meet an oil supply emergency. The international legal obligations which Participating Countries have accepted under the IEP Agreement include commitments:

to maintain emergency oil reserves equivalent to at least 90 days of net oil imports;
to have ready a programme of oil demand restraint measures equal to 7 % and 10% of national oil consumption; and
to participate in oil allocation through IEP emergency measures.

What are the benefits of membership of the IEA to Ireland?

As a member of the IEA, Ireland would be eligible to receive a fair share (determined by formula) of available stocks in a major oil supply crisis in return for the implementation of demand restraint measures. There are also rules for the carefully managed release of strategic oil stocks such as those maintained on Ireland's behalf by the National Oil Reserves Agency (NORA). Activation of IEA measures would involve consultation with the Participating Countries.

OIL SUPPLY DISRUPTIONS

How long would oil stocks last in the event of disruption of supply?

In the event of a significant global oil supply disruption Ireland's strategic oil reserves would be eked out over an extended period to supplement commercial supplies which would still be available in the normal course so as to provide cover far in excess of their normal duration. Even in a very serious emergency, commercial oil deliveries would continue at a high level, and the reserve stocks would only have to make up for the shortfall. For example, if there was a 10% reduction in world oil supplies, a level of disruption unprecedented since the Suez War of 1956- 1957, it is estimated that reserves levels at a "minimum" requirement of 90 days would last over two years even without taking into account the impact of any demand restraint reserves introduced to reduce consumption levels.

The table below details the number of days of oil stocks held by Ireland (IEA Methodology) from 2000 to date.

NATIONAL OIL STOCKS DAYS (IEA METHODOLOGY)
Month	2000	2001	2002	2003	2004	2005	2006	2007
January	87	107	120	111	116	110	111	113
February	85	113	123	105	111	111	116	111
March	82	109	121	104	113	103	119	113
April	87	109	116	114	105	97	123	114
May	78	98	113	109	107	102	113	110
June	80	106	111	109	111	109	118	105
July	94	106	117	108	105	100	120
August	93	120	120	119	107	124	125
September	92	118	116	120	112	116	119
October	93	119	118	120	107	114	131
November	92	120	125	122	110	106	128
December	100	122	125	119	110	107	129

OIL EXPLORATION

Who is responsible for licensing of oil exploration?

The Petroleum Affairs Division of the Department has responsibility for the licensing of such operations.

Contact

Rory Boyd
Assistant Principal Officer
PAD
Beggars Bush
Dublin 4

Tel 353 (0)1-6782691
Fax 353 (0)1-6604462
Email: Rory.Boyd@dcmnr.gov.ie

SETTING UP /RUNNING A PETROL FILLING STATION

Who should I contact if I want to set up a petrol filling station?

The Department of Communications, Energy and Natural Resources has no direct role in this process as the Industry is privatised. The Department has no policy or regulatory responsibilities in terms of petrol stations. In order to set up a filling station an applicant must meet a number of criteria. In the first instance full planning permission must be obtained from the relevant local authority. The Planning and Development Regulations 2001, require that a local authority notify the Health and Safety Authority (HSA) if it considers that the proposed development could pose a major accident risk. The applicant must comply with the European Communities (Control of Major Accident Hazards involving Dangerous Substances) Regulations, 2000. These regulations set thresholds for the storage of petrol products and are administered by the HSA. The Authority also requires applicants to ensure that health and safety procedures are put in place. As regulations may change over time (e.g. new or amended EU legislative requirements), advice in this regard should be sought from the relevant local authority and the Health and Safety Authority.

Construction of petrol stations is a matter for the relevant Local Authority and Planning Authorities.
Safety issues of petrol stations is a matter for local authorities, the HSE and the Department of the Environment.
The sale of petrol stations cannot be restricted as this is a commercial decision.
Change of use from a petrol station to other uses - particularly for development of the site for Residential units is a matter for Local Authorities and the Department of the Environment and Planning.

What safety regulations apply to the oil industry e.g. oil storage facilities etc?

The Department of Communications, Energy and Natural Resources has no direct role in regard to safety regulations at such facilities.

Safety considerations at oil storage facilities are regulated under the Planning and Development Regulations 2001. These regulations require that a local authority notify the Health and Safety Authority (HSA) if it considers that the proposed development could pose a major accident risk. A proposal for an oil storage facility must comply with the European Communities (Control of Major Accident Hazards involving Dangerous Substances) Regulations, 2000. These regulations set maximum storage thresholds for oil products and are administered by the HSA. The Authority also requires applicants to ensure that health and safety procedures are put in place by the operator. As regulations may change over time (e.g. new or amended EU legislative requirements), advice in this regard should be sought from the relevant local authority and the Health and Safety Authority.

PRICES

The basic elements in the formulation of retail oil prices are as follows:

The price of oil products on international markets,
Importation/ Storage/ distribution costs,
Duties levies and taxes, and
Retail margins.

PRICE CONTROL

Who has responsibility for the pricing of petrol, diesel and home heating fuels?

The Oil Supply Division has no responsibility for prices. For some years now oil prices, in line with other sectors, have been de-regulated as a measure to encourage competition in the sector and to abolish cartel development. Persons selling petrol and diesel are required under the Retail Price (Diesel and Petrol) Order, 1997 to display the price per litre both at the petrol pumps and at the roadside. Further information in regard to pricing matters can be obtained by contacting the Office of Consumer Affairs http://www.odca.ie/ This link will open in a new window

Department of Communications, Energy and Natural Resources, 29-31 Adelaide Road, Dublin 2, Ireland
Tel +353-1-6782000 Fax +353-1-6782449