Oil Stock Policy

Arising from membership of both the European Union (EU) and the International Energy Agency (IEA), Ireland has obligations to maintain  90 day reserves of national strategic stocks.

• The EU requires Member States to maintain minimum stocks of  90 days based on inland consumption in the preceding calendar year in 3 categories (Category 1 - Petrol; Category II - Middle Distillates (Kerosine, Jet Kerosine, Gasoil and Diesel) and Category III - Fuel Oil).(A)
• The IEA imposes an obligation on member countries to maintain minimum stocks of Crude Oil Equivalent equal to at least 90 days of net imports in the previous calendar year.(B)

Illustrative Statistics re: Stock Holdings
A) Ireland's EU oil stock holding requirement  for 2005 - 2006 amounts to 1,870,000 tonnes.
B) Ireland's IEA oil stock holding requirement for 2006 amounts to 2,278,800 Tonnes of Crude Oil Equivalent (2,110,000 tonnes of products) - higher than the EU obligation due to a) differing methods of calculation and  b) different times for changing the year that the data is based on.

Ireland is also obliged to maintain contingency plans, including arrangements for the release of national oil reserves, to minimise the adverse effects of a major oil shortage within the framework of a co-ordinated international response.

Prior to 1995 the oil companies in Ireland were obliged to meet a substantial portion of Ireland's stockholding obligations. Under the European Communities (Minimum Stocks of Petroleum Oils) Regulations, 1995 this responsibility was vested in a new State body, the National Oil Reserves Agency (NORA) - a subsidy of the Irish National Petroleum Corporation, which acts as an agent of the Minister for Communications, Marine and Natural Resources. NORA's function is to arrange for the holding of national strategic oil stocks at a level determined annually by the Minister. Such stocks may be held directly by the Agency itself or on its behalf by third parties. Stocks may be held in Ireland and/or in countries with whom Ireland has concluded a Bilateral Oil Stockholding Agreement.

Ireland meets its EU and IEA obligations through a combination of:

• stocks owned and held by the National Oil Reserves Agency (NORA) (either in Ireland or abroad)
• stocks covered by NORA under short-term commercial contracts (either at home or abroad) with an option to purchase, in emergency circumstances, during the period of the contract ("stock tickets"); and
• operational stocks held in Ireland by industry /large consumers (but not including stocks within the distribution networks ie. at secondary depots, filling stations etc) which are deemed to be consumed)

NOTE: Oil importers and large oil consumers are not required to hold strategic stocks but are expected to hold a prudent level of operating stocks.