Ireland Strikes Oil off Cork - Recession Over!

I Heart Internet · 15-03-2012 11:29AM

ArmaniJeanss wrote: »

Short term boost to Providence share price.
Providence and Independent Newspapers both partowned by the O'Reilly family.

Expect this news to be forgotten about in a week, and a 'field not viable' paragraph hidden at the bottom of page 37 sometime in July.

Wow - someone as cynical as me about Providence

.

No - I think this time it's the real deal. They've had many, many dissapointments in the past. The evidence stacks up for this one though.

eth0 wrote: »

This is unlikely to improve petrol prices or do anything about the recession. Thats just how things are done here. A big company will be making millions from our oil and we'll see no benefit.

You're 100% right on the petrol price. Same as Corrib will not give us cheap gas (gas price is set at the UK National Balance Point). A good sprinkling of Corrib size gas projects around western Europe would see the UK NBP (wholesale) price decreases, but one project that happens to be off our west coast will not give us cheaper gas. Similar story with Barryroe. Oil, even more than gas, is internationally traded. No cheap petrol because of this.

Don't get me wrong, this is a good development for Ireland and the private companies involved. Ireland gets 25% corporation tax of this. The private companies pay for the work and take the risk. This could just as easily have turned out to be a massive waste of money.

arybvtcw0eolkf · 15-03-2012 11:30AM

I for one welcome our new American liberators/overlords... Its the 30 days of bombing the sh*t out of us I'm dreading :mad:

I Heart Internet · 15-03-2012 11:31AM

Plazaman wrote: »

Already done I'd say. The first drop of oil wasn't out of the pump by the time Inda was on the phone to the Swedes.

Stig av vårt land, detta är vår olja.

The Swedes??? Huh?

phanley · 15-03-2012 11:31AM

I'm curious as to what exactly does this mean for the country. Obviously Providence shares will(and have) rise/risen, and since its an Irish company looking to further develop in Ireland this means some jobs for chemists, geologists etc..

But

I know that in the corrib gas field shell pretty much take all of the profit and don't have to pay tax or a fee for taking the resources. Does the same policy apply to all resources in Ireland or what exactly is government policy on these things.

also not looking for a load of anti FG/FF/ Labour etc remarks about people running the country! asking on the effect on the exchequer

Born to Die · 15-03-2012 11:38AM

Will this lead to Civil War between the Republic of Cork and Republic of Ireland?

Just the boost the economy needs.

I Heart Internet · 15-03-2012 11:39AM

phanley wrote: »

I'm curious as to what exactly does this mean for the country. Obviously Providence shares will(and have) rise/risen, and since its an Irish company looking to further develop in Ireland this means some jobs for chemists, geologists etc..

But

I know that in the corrib gas field shell pretty much take all of the profit and don't have to pay tax or a fee for taking the resources. Does the same policy apply to all resources in Ireland or what exactly is government policy on these things.

also not looking for a load of anti FG/FF/ Labour etc remarks about people running the country! asking on the effect on the exchequer

Phanley. You're right, this project will produce jobs for the companies involved and their contractors, operations in the port of cork, perhaps more activity in Whitegate refinery. It will also rekindle interest by other investors and companies in the Irish offshore which could see other similar knock-on effects and perhaps (some) successes.

As for direct revenues for the state, this project will be taxed at 25% (up to 40% if its above a certain level of profitability - I don't know what that figure is tbh). The companies involved will be able to write-off their exploration and development work to date on this project before starting to pay the 25%. This compares with 12.5% corporation tax for other sectors.

The oil is "ours" as a nation. Problem is, oil exploration is very, very, very expensive and relatively unsuccessful in Ireland. If it's a choice between beds for sick kids in crumlin hospital or setting up An Bord Black Stuff and pumping hundreds of millions (perhaps billions) into the atlantic in exploration wells.........then I'd prefer to let private investors roll the dice. Let us take a chunk of the gains and them take the losses. Makes a HELL of a change from the ****ing banks!!!

dulpit · 15-03-2012 11:40AM

Born to Die wrote: »

Will this lead to Civil War between the Republic of Cork and Republic of Ireland?

Just the boost the economy needs.

*People's Republic of Cork.

We'll be having our oil, feck off back to the pale with the lot of ye...

fryup · 15-03-2012 11:40AM

united irish emirates

mmmm has a certain ring to it

Frank Black · 15-03-2012 11:41AM

eth0 wrote: »

This is unlikely to improve petrol prices or do anything about the recession. Thats just how things are done here. A big company will be making millions from our oil and we'll see no benefit.

That's the spirit!

Born to Die · 15-03-2012 11:41AM

dulpit wrote: »

*People's Republic of Cork.

We'll be having our oil, feck off back to the pale with the lot of ye...

I'm on your side boi, this is massive. We can give the lot up in the pale some water, it will be more valuable to them than oil soon.

phanley · 15-03-2012 11:44AM

I Heart Internet wrote: »

Phanley. You're right, this project will produce jobs for the companies involved and their contractors, operations in the port of cork, perhaps more activity in Whitegate refinery. It will also rekindle interest by other investors and companies in the Irish offshore which could see other similar knock-on effects and perhaps (some) successes.

As for direct revenues for the state, this project will be taxed at 25% (up to 40% if its above a certain level of profitability - I don't know what that figure is tbh). The companies involved will be able to write-off their exploration and development work to date on this project before starting to pay the 25%. This compares with 12.5% corporation tax for other sectors.

The oil is "ours" as a nation. Problem is, oil exploration is very, very, very expensive and relatively unsuccessful in Ireland. If it's a choice between beds for sick kids in crumlin hospital or setting up An Bord Black Stuff and pumping hundreds of millions (perhaps billions) into the atlantic in exploration wells.........then I'd prefer to let private investors roll the dice. Let us take a chunk of the gains and them take the losses. Makes a HELL of a change from the ****ing banks!!!

Id agree to letting private investment take the risk, cant really be afforded right now. 25% up to 40% is a very nice return for the public purse for doing nothing.

Cheers for the info

15-03-2012 11:45AM

LostCorkGuy wrote: »

yay independence for cork fcuk off ireland this is our oil

Just make sure to tell the Yanks that when they come bombing. Maybe they'll leave the rest of Ireland alone.

smash · 15-03-2012 11:46AM

Providence has an 80% stake in Barryroe, with Lansdowne Oil & Gas holding the remaining 20%.

So it's 100% owned by private companies...

fryup · 15-03-2012 11:46AM

i wonder what cha & mia would think of it

Tonyandthewhale · 15-03-2012 11:46AM

3514 barrels a day at 100e a barrel (rough guess) is 351,400e a day or 128,261,000e a year gross. Considering you have to take a huge chunk of over-heads off before you even get to the point where you can take a mere percentage of that as tax income then I'm not sure this spells the end of the recession for everybody.

Still good news I suppose though.

Dyr · 15-03-2012 11:47AM

Born to Die wrote: »

Will this lead to Civil War between the Republic of Cork and Republic of Ireland?

Just the boost the economy needs.

Give the langers the f**king oil, if it get's rid of them then its a price worth paying :pac:

Plazaman · 15-03-2012 11:47AM

I Heart Internet wrote: »

The Swedes??? Huh?

If my memory serves when Ray "Give-It-All-Away" Burke was Minister for Energy in the mid to late 80's, one of the biggest deals he "brokered" was with the Swedes and Statoil. Read about this recently can't find it on google but something similar HERE.

Charles Haughey had entered his third term as Taoiseach of a country plunging further and further into crisis. Ray Burke was made Minister for Energy.

The oil companies through their Irish Offshore Operators Association were seriously lobbying for change arguing that the Irish terms were too harsh. Burke acquiesced and started to dismantle the basis of Keating’s ideas. He allowed the companies to write 100% of tax off against all exploration and construction costs over the past 25 years.

Even Ray Burke felt it would be over generous to reduce the 50% corporation tax (something Bertie Ahern would disagree with 5 years later, see below) so it remained. This was a good start for the oil companies as all costs of exploration were effectively transferred onto the people of Ireland as the companies were paying less tax on something that belonged to the people of the country.

I Heart Internet · 15-03-2012 11:47AM

phanley wrote: »

Id agree to letting private investment take the risk, cant really be afforded right now. 25% up to 40% is a very nice return for the public purse for doing nothing.

Cheers for the info

No problem.

In fairness, there are some who would say 25% or 40% is not enough, it's our oil and we should have it all. Or that we should have a royalty and a tax on profits, etc.

fishy fishy · 15-03-2012 11:48AM

yes, and already it has stated in the piece that all workers, machinery etc will come from OUTSIDE ireland, so Ireland can yet again bugger off.

I Heart Internet · 15-03-2012 11:48AM

Plazaman wrote: »

If my memory serves when Ray "Give-It-All-Away" Burke was Minister for Energy in the mid to late 80's, one of the biggest deals he "brokered" was with the Swedes and Statoil. Read about this recently can't find it on google but something similar HERE.

Oh yeah, no, Statoil is Norwegian.

cassel16 · 15-03-2012 11:49AM

We're Irish, we'd find a way to f*ck up oil exploration

Born to Die · 15-03-2012 11:50AM

How will our politicians fcuk this one up?

Immaculate Pasta · 15-03-2012 11:51AM

So instead of everyone wondering round with Boston hoodies, they'll be Texans everywhere with cowboy hats. At least we have enough horses for them :cool:

Paparazzo · 15-03-2012 11:52AM

zerks wrote: »

Hope the fuck this shower don't do a Bertie on it & sell away the rights to the oil for a quick buck.

As much as I hate Bertie and FF, wasn't what they did standard procedure?
Someone who knows more about it can correct me, but basically, Ireland isn't exactly known for it's oil, we can't afford to explore ourselves, so we make it cheap for private companies to explore. Hopefully they find oil or gas (which they did, corrib field) and then we know there's oil out there we can either make it a lot more expensive for private companies to explore, or do it ourselves. If we didn't do it, no one would ever explore there, and we wouldn't get a cent.

One thing that's certain, we didn't find 10 billion euros worth of oil then let Ray Burke sell it of for 10k in a brown envelope like you're suggesting.

I Heart Internet · 15-03-2012 11:52AM

Tonyandthewhale wrote: »

3514 barrels a day at 100e a barrel (rough guess) is 351,400e a day or 128,261,000e a year gross. Considering you have to take a huge chunk of over-heads off before you even get to the point where you can take a mere percentage of that as tax income then I'm not sure this spells the end of the recession for everybody.

Still good news I suppose though.

The producing field (if it is actually brought to production) would likely produce a lot more than 3,512 barrels per day - that was just for one test well. It might be, say, 10-15,000 bopd. And the studies say there's 59 million barrels down there. It might only produce for 10 years - then whither away like the Kinsale gas field is doing now.

Born to Die · 15-03-2012 11:52AM

Immaculate Pasta wrote: »

So instead of everyone wondering round with Boston hoodies, they'll be Texans everywhere with cowboy hats. At least we have enough horses for them :cool:

All our horses are away this week.

token101 · 15-03-2012 11:53AM

Nows the time to secede boy!! Cut the chaff!! I'll be f*cked if I'm sharing my black gold with some strawberry selling knacker from Wexford or some horseback tin stealer from Limerick. :pac:

smash · 15-03-2012 11:53AM

Born to Die wrote: »

How will our politicians fcuk this one up?

Ah sure we should let the nice lads in the oil companies have it. They might create 5 or 6 jobs.

token101 · 15-03-2012 11:55AM

Immaculate Pasta wrote: »

So instead of everyone wondering round with Boston hoodies, they'll be Texans everywhere with cowboy hats. At least we have enough horses for them :cool:

Everythings bigger in Cork boy!!!!!!! **** your horse, I've a ferrari outside!! YEEEEE HAAAAWWWW!!!!

Born to Die · 15-03-2012 11:55AM

smash wrote: »

Ah sure we should let the nice lads in the oil companies have it. They might create 5 or 6 jobs.

Possibly the attitude that will prevail. Teachers against oil companies, we will be lucky to get a drop.

Ireland Strikes Oil off Cork - Recession Over!

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