Solution to Ireland Problems?

the groutch

http://www.irishtimes.com/newspaper/finance/2012/0201/1224311046794.html?via=mr

INITIAL INDICATIONS from exploration drilling in the northwest show that the area could hold enough natural gas to supply Irish needs for 12 years and create a total of 3,000 jobs.
Tamboran Resources, which has exploration drilling licences on both sides of the Border in the northwest region, said yesterday that its initial studies have confirmed the existence of a “substantial natural gas field” in northern Leitrim.
The company has already been the focus of a series of protests in the region because it is proposing to extract the gas using hydraulic fracturing – or fracking – a technique that has been blamed in the US for contaminating water supplies and other environmental problems.
Tamboran’s findings suggest that production there could ultimately reach 2.2 trillion cubic feet of gas, worth $55 billion at yesterday’s prices, which were around $2.50 per 1,000 cubic feet in New York.
The company said yesterday that the field could hold the equivalent of 12 years worth of Irish daily natural gas consumption.
Over 90 per cent of the natural gas consumed here every day is imported and the fuel is used to generate more than 60 per cent of electricity supplies.
Tamboran yesterday estimated that the Leitrim field would substantially cut these imports for up to 40 years and argued that it would help secure future energy supplies for the island of Ireland.
In a statement, chief executive, Richard Moorman, confirmed that Tamboran’s initial analysis suggests the presence of very substantial shale gas reserves in the north Leitrim area.
“Allowing for even modest rates of recovery, the energy and economic benefits would be tremendous,” he claimed.
The statement said that if the field were commercially developed, this would create 600 jobs directly and the knock-on effect would result in a further 2,400 new jobs.
It could also yield a substantial benefit for the State, which could get €4.9 billion in corporate, exploration and employment taxes.
Tamboran says it intends investing €7 billion in the region. Along with this, if the find hits its commercial targets, it has pledged to create a local investment fund that will channel €2 million a year into Leitrim.
Late last year, Mr Moorman told The Irish Times that the company had talks with Sligo Institute of Technology about the possibility of providing training for prospective workers.
Tamboran only holds exploration licences for the area. If it wants to go ahead and begin extracting the gas, it has to apply to the Department of Communications, Energy and Natural Resources for further permits allowing it to do this.
In the meantime, Minister for Energy Pat Rabbitte has asked the Environmental Protection Agency to commission an independent study into the practice.
Fracking involves pumping large quantities of water at a rock face, deep underground, to create fissures or cracks through which natural gas can escape and be captured. It is used on rock types that are not porous enough to allow gas to be extracted by normal drilling techniques. The rocks are mainly shale, which is why the fuel extracted by fracking is known as “shale gas”.
Tamboran plans to drill at 500m-1,500m under ground, using drill bits sealed in chambers constructed of steel pipe and cement designed to prevent contamination of soil or groundwater.
While chemicals are normally used in the process as lubricants, Mr Moorman has said Tamboran believes they would not be necessary in Leitrim.
Last month, the company issued a statement saying that it supports tough regulation and full-scale monitoring, embracing boreholes and drilling, seismic activity, and air and water quality.
Tamboran is one of three companies carrying out onshore natural gas exploration in Ireland.
Tamboran is a privately held Australian and Canadian-based exploration company with licences and assets in Ireland, Australia and Africa.

Even if the numbers are a bit over-optimistic, this could be a golden opportunity for the country, even if it's only through increasing royalties/taxation rather than extracting it ourselves.

Climber

...and then let the civil servants run it into a loss making venture!

Irelands problems goes soooo much deeper than a temporary cash flow problem my friend. Finding our pot of gold at the end of the rainbow won't sort out our problems.

Debtocracy

Where are the long-term costs that the government will incur in dealing with the environmental and population health damage caused by this process? The French have the right idea in letting other countries try it first.

daithicarr

Thats only one of the two companys given a licence to drill in that area, has the other made any announcements ? according to this article the whole basin is estimated to have 108 billion in resources.

One can only hope that once these things are proven we follow the example of the norwegians and the brazilians , and develop our oil and gas industry.

if the company claims there is 55 billion worth there and Ireland will benefit in total 4.9 billion from corporate tax and wages etc, we really are throwing it away. thats less than 10%.

Can it be extracted without cauing massive ecological harm ?

http://www.irishtimes.com/newspaper/weekend/2011/0319/1224292581861.html

eire4

daithicarr wrote: »

Thats only one of the two companys given a licence to drill in that area, has the other made any announcements ? according to this article the whole basin is estimated to have 108 billion in resources.

One can only hope that once these things are proven we follow the example of the norwegians and the brazilians , and develop our oil and gas industry.

if the company claims there is 55 billion worth there and Ireland will benefit in total 4.9 billion from corporate tax and wages etc, we really are throwing it away. thats less than 10%.

Can it be extracted without cauing massive ecological harm ?

http://www.irishtimes.com/newspaper/weekend/2011/0319/1224292581861.html

I think you hit the nail on the head when the article claims there is $55b worth and Ireland as a country would only get a paltry $4.9b.

We need our government to not push out the begging bowl and sell off our natural resources so cheaply. If we are going to allow foreign companies in to exploit these resources which we probably have to do we need to negotiate hard with them and get a fair return for the country.

skafish

eire4 wrote: »

I think you hit the nail on the head when the article claims there is $55b worth and Ireland as a country would only get a paltry $4.9b.

We need our government to not push out the begging bowl and sell off our natural resources so cheaply. If we are going to allow foreign companies in to exploit these resources which we probably have to do we need to negotiate hard with them and get a fair return for the country.

And, after the debacle that is the whole Shell mess off the Mayo coast, do you realy expect to see anything like a fair return for the country??

[Jackass]

"Fracking" is devistating to the natural enviornment.

It is well documented and known for an extremely long time, that there are huge natural gas fields all around Ireland and off the coast, however, the technology does not yet exist to farm it safely and efficiently.

skafish

skafish wrote: »

And, after the debacle that is the whole Shell mess off the Mayo coast, do you realy expect to see anything like a fair return for the country??

Which debacle are you talking about? The fact that any drilling so far has been at a massive loss? Or the Shell to Sea/crusty infestation fiasco at massive cost to the taxpayer?

eire4

eire4 wrote: »

I think you hit the nail on the head when the article claims there is $55b worth and Ireland as a country would only get a paltry $4.9b.

We need our government to not push out the begging bowl and sell off our natural resources so cheaply. If we are going to allow foreign companies in to exploit these resources which we probably have to do we need to negotiate hard with them and get a fair return for the country.

Do you think that the barrels of oil and gas just magically appear once they have been discovered? Seriously?

skafish

Rojomcdojo wrote: »

Which debacle are you talking about? The fact that any drilling so far has been at a massive loss? Or the Shell to Sea/crusty infestation fiasco at massive cost to the taxpayer?

Both.
As far as I can see, the only ones to benifit from this debacle are those Guards making a fortune on OT. Good luck to them.
But, if I remember rightly, the payback to the country when/if Shell ever do start to pump gas ashore is minimal.:mad::mad:

eire4

Rojomcdojo wrote: »

Do you think that the barrels of oil and gas just magically appear once they have been discovered? Seriously?

No I don't think these resources just magically appear. However if saying that I hoped our government negoatiated hard and made sure we got a fair return for the country I fail to see how that is in any way unreasonable. So yes I was being serious.