Ireland has sufficient oil reserves to last three years, even if there were an unprecedented fall-off in supply caused by conflict in the Persian Gulf, the Minister for Communications, Marine and Natural Resources, Mr Dermot Ahern said today.
Mr Ahern briefed the Cabinet today on the situation and issued a statement saying that oil prices are likely to rise in the event of an attack but that the rise would be temporary.
He said the indicators suggest war would not have a serious effect on global oil supplies. "This view is underpinned by the declared intention of OPEC to increase production accordingly should any shortfall occur," Mr Ahern said.
Ireland's emergency oil stocks exceed recommended levels, the Minister said, indicating that the latest figures show Ireland with 111 days supply against the International Energy Agency (IEA) recommendation of a minimum of 90 days of net imports from the previous year.
The Minister said the stocks were mainly located in Ireland with remaining supplies held under agreement with other EU countries.
He said that if there was a 10 per cent reduction in global oil supply - a level unprecedented over the past four decades - Irish oil reserves would last 1,100 days or almost three years.
"They would last even longer if account is taken of the reduction in consumption which would be achieved by the demand restraint measures which would be triggered by a crisis of this magnitude," he said.