Ireland Strikes Oil off Cork - Recession Over!

Solair

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.

Yeah, I agree.
Petrol prices in Norway would make you cry!


1.95 Euro Cent / L for Unleaded
1.91 Euro Cent / L Diesel

and they've loads of oil!

North Sea oil basically saved the UK from actually going into default and bankruptcy in the 1970s btw. I think we're possibly going to see history repeating itself here.

The taxes will be hiked on the petroleum companies. This is how most countries do it, e.g. in Australia, mining taxes were steadly hiked over the last while.

If we do have a huge oil reserve, we do need to learn lessons from the bubble/bust though and do what Norway did and put a large % into a national fund to ensure we always have a cushion when it runs out!

On the plus side, at least if we have big oil reserves, we can even in the short term, get our credit rating improved a lot as we'll have guaranteed revenues to pay it.

Constitutionally speaking, the state can manage oil assets without much fuss. It's just that FF decided to do things a rather weird way to attract exploration companies.

Didn't we have a state-owned oil company in the past ? Ola ?

We still have NORA : http://www.nora.ie/

token101

KyussBishop wrote: »

Even if we're in economic hard times, we don't need this oil now to the extent that we have to basically give it away almost free to private companies, to get a relatively small return.

Don't see why we can't wait 10 or more years to build up a fund to pay for exploration and whatnot ourselves, and then 100% own all the profits from it; in 10-20 years, the oil will be worth a LOT more too.

10 years? Jesus no! Can't be waiting that long! Cork needs it's own country now! I'm not having some Dub steal my black gold! Who's this 'ourselves'? Are you emigrating to Cork? Apparently we have a secret Starbucks now so it won't be too much of a culture shock! You'll miss the smog though!

faceman

Duggys Housemate wrote: »

yeah, lets do that for oil exploration in uncertain waters. See how that works out for us.

As oil becomes more and more expensive it becomes increasingly viable for companies to drill for oil in harder to reach places.

Capt'n Midnight

From the original article

This is the fifth time oil has been hit during explorations of the Barryroe licensing block, but the other wells fell below the commercialisation target when examined in the 1970s and 1990.

Is it the old story of it being commercially viable because the price of oil is so high now ?

Solair

Cork's been planning this for years... it already has a nuclear programme ! lol

http://www.studentnews.ie/uranium-rods-mini-reactor-on-ucc-campus-shocking-dail-answer-reveals-1344/

Bullseye1

I Heart Internet wrote: »

How will we fund this state oil company???

If the levels of oil are there it should be possible for the government to borrow on that to develop and produce.

It may also be a joint public/private operation.

Capt'n Midnight

Solair wrote: »

North Sea oil basically saved the UK from actually going into default and bankruptcy in the 1970s btw. I think we're possibly going to see history repeating itself here.

Revenue from North Sea oil meant the UK didn't need to help manufacturing industry. High interest rates benefited politicians and their cronies and wiped out manufacturing industry.

Had Scotland been independent back then...

The rest of the UK might still have a large industrial base

K-9

faceman wrote: »

As oil becomes more and more expensive it becomes increasingly viable for companies to drill for oil in harder to reach places.

Capt'n Midnight wrote: »

From the original article

Is it the old story of it being commercially viable because the price of oil is so high now ?

Think so, plus new technologies as it says in the piece.

AFAIK Provident will do more exploration work to show this is viable and then they sell the rights to Shell or whoever is interested.

Cú Giobach

Balmed Out wrote: »

I do think this could result in civil war. Not petween Cork and the 25 lesser counties which to be fair after pretty much bringing the British empire to their knees all on our own would be simplicity personified but between West Cork and the rest of Cork.
Those uppity so and so's have I believe been waiting for the day when they would have the financial option of becoming independant.
When asked where their from they never ever say Cork they always have to specify West Cork, the snobby gits.

Ha ha, where would have been without the lads from West Cork in '21, you would probably still be fawning over and bowing to the British Queen on the streets of Cork city....
........Oh, Wait!!

We'd need nothing more than a few hurleys to keep our oil away from the soft, lily white hands of the rest of ye!!

MonkeyTennis

The UN has firmly refused to recognise the Independent State of Cork

Kofi Annan in a press release today stated

I coudnt understand a word they were saying. Something about liking boys.

I Heart Internet

Bullseye1 wrote: »

If the levels of oil are there it should be possible for the government to borrow on that to develop and produce.

It may also be a joint public/private operation.

And how do we find out if sufficient "levels of oil" are there?

Dyr

Cú Giobach wrote: »

Ha ha, where would have been without the lads from West Cork in '21, you would probably still be fawning over and bowing to the British Queen on the streets of Cork city....
........Oh, Wait!!

We'd need nothing more than a few hurleys to keep our oil away from the soft, lily white hands of the rest of ye!!

Gwan ourra dat youse have a big brit memorial up in de middle of your city. It was the good men up in the dublin HQ who did the heavy lifting back in 21 while your lot shot up coppers in remote barracks

Paparazzo

Spacedog wrote: »

Well if it's the word of some Norwegian guy on the radio as reported from a randomer off the internet, I guess you've proven me wrong.

Now if you'll excuse me, I'm off to organise a mass burning of Leaving Cert Geography textbooks that say otherwise.

I said you're right and I stand corrected, relax!
But to be honest, I'd believe a randomer on the radio ahead of LEaving Cert geography books!

podgemonster

Balmed Out wrote: »

I do think this could result in civil war. Not petween Cork and the 25 lesser counties which to be fair after pretty much bringing the British empire to their knees all on our own would be simplicity personified but between West Cork and the rest of Cork.
Those uppity so and so's have I believe been waiting for the day when they would have the financial option of becoming independant.
When asked where their from they never ever say Cork they always have to specify West Cork, the snobby gits.

Theres nothing but fine hard working honest people down in west cork and theres nothing wrong with stating that you are from one of the most picturesque part of the country & county steeped in history.

Those blow-ins who drive down in their big cars and sunglasses (blocking the road when the lads are trying to draw in the silage) in the summer maybe the only uppity thing about the area.

Solair

Can we make sure that the Government doesn't sell the whole thing for 3 magic beans or something!

I'm hoping FG/Labour is a bit more sensible than FF were!

Solair

Capt'n Midnight wrote: »

Revenue from North Sea oil meant the UK didn't need to help manufacturing industry. High interest rates benefited politicians and their cronies and wiped out manufacturing industry.

Had Scotland been independent back then...

The rest of the UK might still have a large industrial base

I don't really agree at all. The British manufacturing industry was a lost cause by the time the oil was found. It had been let rot and fall apart for a whole variety of reasons, and the Tories just jumped on it in the 1980s in a very negative way.

There were huge problems in the UK with keeping the manufacturing base going, not all of which were government policy.
Sadly, a lot of British manufacturing ran itself into the ground, mostly due to very poor management and failure to grab export markets.

I think the UK's changed a lot since then to the point that it's almost unrecognisable. However, there was a major problem with the class-system entering the manufacturing industry. "Working Class" vs "Middle Class". You'd a labour force with a huge chip on its shoulder due to the class system and a management / CEO class who were all about who you knew, who you were related to, what school you went to, what your father's title was etc rather than being their on merit.


Compared to Germany and other continental competitors or the US and Japan, you also had a larger totally undereducated work force, thanks to the class system and historical lack of opportunity. That's now totally changed as more people reach 3rd level education or at least have proper skills. There was a hell of a lot of reliance on taking people into industry at 16, and getting on-the-job training and ending up with totally non-transferable skills acquired informally in the UK in the old days.

It didn't do them much good and just left a huge raft of unemployed, undereducated people in rust-belt areas for decades.

British industrial history in the 1970s/80s seems to be just a long line of failed products, misinterpreting of trends, poor market research and total lack of flexibility, bad quality control etc etc.


I could give you loads of examples, but it would just derail the thread.

Basically, if you're producing over-priced, bad quality products that nobody wants, your industries go bust very quickly.

Nothingbetter2d

Bambi wrote: »

Gwan ourra dat youse have a big brit memorial up in de middle of your city. It was the good men up in the dublin HQ who did the heavy lifting back in 21 while your lot shot up coppers in remote barracks

they even licked the queen's bum in cork last may too :P

Wattle

I like that film Local Hero. This reminds me of that.

cbyrne11

Balmed Out wrote: »

I do think this could result in civil war. Not petween Cork and the 25 lesser counties which to be fair after pretty much bringing the British empire to their knees all on our own would be simplicity personified but between West Cork and the rest of Cork.
Those uppity so and so's have I believe been waiting for the day when they would have the financial option of becoming independant.
When asked where their from they never ever say Cork they always have to specify West Cork, the snobby gits.

Wow now you know how the rest of the country feels about Cork smugness!

As for "much bringing the British empire to their knees all on our own" Would that be before or after you shot Michael Collins?

Take your oil if it gets rid of the lot of ye's!

MonkeyTennis

Solair wrote: »

I could give you loads of examples, but it would just derail the thread.

Basically, if you're producing over-priced, bad quality products that nobody wants, your industries go bust very quickly.

Like British Cars

foxyboxer

Double Guitars and Chocolate Microscopes!!!

Finally..

Spacedog

cbyrne11 wrote: »

...As for "much bringing the British empire to their knees all on our own" Would that be before or after you shot Michael Collins?

OOOOOOOOOOhhhhhhhhhhhhh NO YOU DI'N'T!!!!!!!!!!

Outkast_IRE

I Heart Internet wrote: »

And how do we find out if sufficient "levels of oil" are there?

A giant dipstick , much like what you use to check car oil, we will have to make sure to wipe it first.

getz

MonkeyTennis wrote: »

Like British Cars

yes if you get some money you could buy,a lotus,bently,jaguar,mini cooper,morgan,aston martin,range rover,, rolls ect,but wait are they not british cars ?

Capt'n Midnight

getz wrote: »

yes if you get some money you could buy,a lotus,bently,jaguar,mini cooper,morgan,aston martin,range rover,, rolls ect,but wait are they not british cars ?

No , not anymore all foreign owned

except for morgan

Witcher

Let Cork have the oil and their independence, small price to pay to get rid of the fcukers:pac:

RichieC

Black gold! Texas Tea... think there's gold in them there hills too boys!

InTheTrees

AngryBollix wrote: »

Cue years of protests by tree hugging free loaders who think it is bad for the environment and an 8 figure garda overtime bill

I was a conservationist up until about three hours ago...

Now I want a high def tv and an ipad.

and a big car.

and...

Duggys Housemate

Black Gold, Barry's tea. More like.

I won't have Barry's tea, or Fitzgerald's supper myself.

Solair

MonkeyTennis wrote: »

Like British Cars

Yup like British cars (Nissan's the only company manufacturing main stream cars there nowadays). The remaining British car companies are obscure high-end almost bespoke stuff which is largely irreverent. High tech gear (e.g. telcommunications equipment - was big in the 70s e.g. GPT, Plessey, Marconi etc all gone), transportation equipment (BREL etc) all gone / owned by Alstom / Bombardier etc, Electrical equipment (GEC, English Electric, etc) all gone... Aircraft (had potential, never lived up to it and now just contributes to Airbus mostly). Very high tech stuff medical scanners, radar etc Thorn EMI, Marconi, Ferranti ... gone. Nuclear technology - various companies, pursued a very over-complicated system AGR that was unexportable as it was so expensive, all gone. Many formerly huge British chemical, pharma etc companies are also gone!

See a pattern?
It can't all be blamed on Government policy... there's a very large degree of weak management / poor marketing.

Obviously there are some success stories too, but I think there was a definite huge problem in the 1960s-early 80s period, particularly for traditional-type UK companies that were engaged in anything heavy manufacturing related. They just failed to adapt to the market.

So to get back on topic, yes the oil was a HUGE bonus for the UK economy and probably saved its bacon as those industries were going through hell and failing to cope with the real world. It provided a cushion in the 70s/80s that allowed the UK to move on and transform. It's not perfect and it's over-dependent on the financial services sector, but at least it's not bankrupt, which is where it was heading in the 70s!

*IF* we've discovered oil and there are serious reserves, we might just have the ticket out of our own economic disaster i.e. the housing bubble!

getz

Capt'n Midnight wrote: »

No , not anymore all foreign owned

except for morgan

all manufactured and made in britain,but if you go with your logic, on foreign ownership no country owns anything,all the major car companies have investment in each other,

who the fug

Right lads, when we meet the yanks we do it in Dublin.

So when the bombs fall it won't cause much damage.

West Cork will accept local government, but will need South Kerry to keep us quiet

getz

who the fug wrote: »

Right lads, when we meet the yanks we do it in Dublin.

So when the bombs fall it won't cause much damage.

West Cork will accept local government, but will need South Kerry to keep us quiet

when the oil fires are burning,dont sent for red adair to put them out,because paddy will ask him ,if he still dances with ginger rodgers

who the fug

getz wrote: »

who the fug wrote: »

Right lads, when we meet the yanks we do it in Dublin.

So when the bombs fall it won't cause much damage.

West Cork will accept local government, but will need South Kerry to keep us quiet

when the oil fires are burning,dont sent for red adair to put them out,because paddy will ask him ,if he still dances with ginger rodgers

Who Ginger Rodgers

roundymac

Solair wrote: »

Can we make sure that the Government doesn't sell the whole thing for 3 magic beans or something!

I'm hoping FG/Labour is a bit more sensible than FF were!

It's already sold, finders keepers. We get a tax revenue, I think it's 25%, fairly standard industry wide AFAIK. The UK tried to raise it to 32% last year, a lot the operators shut down their wells until it was dropped. None of the oil will even reach shore here, Whitegate cannot refine it without major investment. The oil will be pumped directly into tankers from single point mooring buoys the same as they do in the North sea, and will be ferried straight to Milford Haven. Why bring it ashore here anyway, you'd have that load down from Rossport trying to stop it.
You could not start a state company here, the EU would not allow it. The Norweigens saw the EU for what it was and decided to stay out, they have total control over their own oil and gas.

getz

who the fug wrote: »

Who Ginger Rodgers

my god now i do feel old

who the fug

getz wrote: »

who the fug wrote: »

Who Ginger Rodgers

my god now i do feel old

Fish in a barrel

Vicxas

I wonder if this will be another false economy, like the building boom.....

Solair

Vicxas wrote: »

I wonder if this will be another false economy, like the building boom.....

Well, it would be based on actual salable products if it's an oil boom!
The building boom was based on borrowing lots of money and selling piles of bricks to each other at insanely huge prices i.e. no wealth was actually generated, rather future wealth (yet to be earned) was destroyed and extracted by speculators.

The risk with a resources boom, is more like what Australia's facing - you can end up with a one-trick pony economy with massively high costs of living. Once the resources run out, you're bust.

However, it's not a false economy. Just one that could be open to gross mismanagement. Hopefully, lessons have been learned though!

MonkeyTennis

We should spend all the profits on hooers and coke. Just sayin like

Stiffler2

Those "cork people" can keep that Plastic Sheeting fella as well.
He can do your news.

blatantrereg

Does Ireland get anything from this? It sounds like the only gain will be attracting further buyers of exploration contracts. The company that found it will get all the direct profits won't they. Even the tools to extract it are being sourced from the UK. I expect Ireland will just sell further exploration contracts at highly beneficial terms to the buyers.

SeaFields

For all you Corkonian boardies, the headline on tonights Evening Echo...

"Oil right boy"


Puntastic.

InTheTrees

blatantrereg wrote: »

Does Ireland get anything from this? It sounds like the only gain will be attracting further buyers of exploration contracts. The company that found it will get all the direct profits won't they. Even the tools to extract it are being sourced from the UK. I expect Ireland will just sell further exploration contracts at highly beneficial terms to the buyers.

Well its an expensive business, that we just arent prepared for. So we get 25% in taxes which isnt bad.

Come on Eileen

Balmed Out wrote: »

I do think this could result in civil war. Not petween Cork and the 25 lesser counties which to be fair after pretty much bringing the British empire to their knees all on our own would be simplicity personified but between West Cork and the rest of Cork.
Those uppity so and so's have I believe been waiting for the day when they would have the financial option of becoming independant.
When asked where their from they never ever say Cork they always have to specify West Cork, the snobby gits.

Ya but now we have oil down here too :-)

Stiffler2

Could we not just get a massive circular saw and saw Cork off altogether ?
Then float them out to the ocean ?

Park Royal

You would have to love the O'Reilly's ......:o

Plenty of personal income tax to be got , from the lucky shareholders and

oil high earners??>>>>>over to you Dept of Revenue...

Hope this does not mean the scrapping of the Seanad and the

large down sizing of the Dail will not go ahead.....as promised....?

jpjc05

Now don't be getting any ideas Monsieur Sarkozy...

http://4.bp.blogspot.com/_VizIrBQwA8w/TCtb-k-gQxI/AAAAAAAAJno/g4NvAkN7BTc/s640/slant+drilling.JPG

Giblet

Stiffler2 wrote: »

Could we not just get a massive circular saw and saw Cork off altogether ?
Then float them out to the ocean ?

foxyboxer

Cork has always been a bit like the Texas of Ireland anyway so this is quite appropriate.