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).
• 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.

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 subsidiary of the Irish National Petroleum Corporation, which acts as an agent of the Minister for Communications, Energy and Natural Resources. NORA was established as a stand-alone agency, under the aegis of the Department of Communications, Energy and Natural Resources, under the NORA Act 2007. 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)