Ireland 'close to oil billions'

humanji

death1234567 wrote: »

Misleading title, can a mod change it to " Providence Resources Plc 'close to oil billions' "

Geographically speaking, the title is correct.

dj jarvis

so does this mean RTE will do a series based on Irish oil barons a la dallas?

suppose it would have to be based in cork,

i nominate Brendan Gleeson to play the JR role

any other ideas for cast and plot line ?


( by the way i claim all copyright to the idea and any idea's stolen from this thread ** loads shot gun ** )

WolfForager

I have no idea how much profit an oil company makes off a barrel of oil, but let's say it's 50% (which seems conservative), taking into account long term costs, variable costs etc.

Right so atm a barrel of oil is trading at $93, so that's €72. So that's €36 in profit per barrel. This means at 25% extraction tax the government makes €9 a barrel. So 280 million barrels makes €2.5 billion tax for the government. Also seeing as the tax has the potential to rise to 40%, the 280m barrels is a conservative estimate and the price of oil will only increase, the revenue for the Irish Government could be ALOT more.

So €2.5 billion minimum (of course this'll be over the course of a decade or more) for the Government who didn't spend a cent in exploration or infrastructure. Now if the oil is brought to Ireland for refinement it'll mean extra jobs and even more tax, corporation tax, VAT etc.

Exploration will also ramp up if the oil field is successful, hopefully leading to more oil fields and more revenue.

Honestly don't see how this is a bad deal for Ireland at all.

Fratton Fred

Ellis Dee wrote: »

Yet another story about how "close" we are to untold wealth. Always close, but never there.:rolleyes:

As they say down here in Laois: "Nearly" never bulled a cow.:):):)

That expression always reminds me of Carry on Camping, when Sid James bumps into a young woman walking a cow along the road.

"Where are you taking that?" Sid asks
"To see the Bull sir"
"Can't your father do that?"
"No sir, it has to be the bull":D

Anyway, Irish oil.

208million barrels is a lot, unless you compare it to Saudi who have 267 billion barrels proven oil reserves.

And it's all owned by the royal family.:eek:

celtic_oz

as long as the Irish Government put in clauses which covers us in the event of an enormous find.

Do not want to end up in a situation similar to the M50 fiasco where they based their numbers on current trends and didnt put in a simple clause to protect themselves if something outside of what is predicted is found. Do you remember the bullsh1t ? Who could have foreseen 10 times the traffic .. no way we could have known la la la

Example clause

"The extraction tax is @ 25% for 200 million barrels, 40% up to a billion barrels.
More than a billion all bets are off .. we decide if want a national oil company where all profits go to the government"

Do you think they could manage it ?

WoollyRedHat

What about olive oil? I hope we're not running out of that, the alternative is frightening.

Mint Sauce

Awaits the US army to start land planes here.























































Ah wait.......

asherbassad

28064212 wrote: »

Providence are a private company, they aren't going to sell it cheap to Ireland when they can get a better price on the world market. Unless you're suggesting the Irish state take over oil exploration? I'd rather the state didn't spent €3 billion in an area they have no qualifications

I thought the price of a barrel of oil was the same everywhere in the world.

asherbassad

WolfForager wrote: »

I have no idea how much profit an oil company makes off a barrel of oil, but let's say it's 50% (which seems conservative), taking into account long term costs, variable costs etc.

Right so atm a barrel of oil is trading at $93, so that's €72. So that's €36 in profit per barrel. This means at 25% extraction tax the government makes €9 a barrel. So 280 million barrels makes €2.5 billion tax for the government. Also seeing as the tax has the potential to rise to 40%, the 280m barrels is a conservative estimate and the price of oil will only increase, the revenue for the Irish Government could be ALOT more.

So €2.5 billion minimum (of course this'll be over the course of a decade or more) for the Government who didn't spend a cent in exploration or infrastructure. Now if the oil is brought to Ireland for refinement it'll mean extra jobs and even more tax, corporation tax, VAT etc.

Exploration will also ramp up if the oil field is successful, hopefully leading to more oil fields and more revenue.

Honestly don't see how this is a bad deal for Ireland at all.

What, like the price of houses :pac:

WolfForager

asherbassad wrote: »

What, like the price of houses :pac:

No. There's this mythical thing called "Peak oil", which means, in general, the price of oil will only increase in the next 50 years.

Sadly natural resources do not follow frivolous trends such as house pricing.

yupya1

csallmighty wrote: »

Does this mean we're going to get invaded by America?

Doesnt look like it yet but if they start giving us weapons get worried!

pickarooney

I read the thread title as 'Ireland chose to boil onions' for some reason

brandon_flowers

All the idiots on here saying the ordinary people will never see a penny should go to Rotterdam, Stavanger or Aberdeen and see how ordinary people there have salaries 3 or 4 times the average industrial wage for working in the oil industry. I can safely say no other industry pays higher across the board.

Honestly the only problem I see is the non-progressive type people who will oppose any sort of change or improvement which could come about because of this.

A lot more interesting presently is that Exxon Mobil will be drilling the Dunquin field for gas off the coast of South Kerry in Q1 2013.

http://www.rigzone.com/news/article.asp?a_id=121074

If there is to be a discovery then we already have a field developer/operator in charge and the biggest in the world at that. For Barryroe the major player is Providence who will never operate an oilfield.

Boombastic

opinion guy wrote: »

Sure isn't there supposed to be a gold rush in waterford or wexford or some place ???

The real money is in rare earth metals - shouldn't someone start looking for them somewhere ?

No, the real money is is scrap metals and cash for gold:)

MaxSteele

I'm just waiting for a Fox News report about how the hapless residents of Ballymote in Sligo are harbouring wanted Al Qaeda operatives.

Any day now ....

SouperComputer

Ah the good auld annual TO'R fundraiser......
Shame $hite being talked, different year: http://www.boards.ie/vbulletin/showthread.php?t=2056407203

delad

WolfForager wrote: »

I have no idea how much profit an oil company makes off a barrel of oil, but let's say it's 50% (which seems conservative), taking into account long term costs, variable costs etc.

Right so atm a barrel of oil is trading at $93, so that's €72. So that's €36 in profit per barrel. This means at 25% extraction tax the government makes €9 a barrel. So 280 million barrels makes €2.5 billion tax for the government. Also seeing as the tax has the potential to rise to 40%, the 280m barrels is a conservative estimate and the price of oil will only increase, the revenue for the Irish Government could be ALOT more.

So €2.5 billion minimum (of course this'll be over the course of a decade or more) for the Government who didn't spend a cent in exploration or infrastructure. Now if the oil is brought to Ireland for refinement it'll mean extra jobs and even more tax, corporation tax, VAT etc.

Exploration will also ramp up if the oil field is successful, hopefully leading to more oil fields and more revenue.

Honestly don't see how this is a bad deal for Ireland at all.

Wrong wrong wrong. The profit on a barrel of oil is more like $10. Also providence can write off their costs for the past 25 years against any taxable profits. So Ireland won't make one red cent from an oil find of 280m barrels. The only way Ireland will make any money is if a massive oil field was discovered. It would have to be about 5 billion barrels before we start to make any money.

iamstop

pickarooney wrote: »

I read the thread title as 'Ireland chose to boil onions' for some reason

Lysdexia chum?

brandon_flowers

delad wrote: »

Wrong wrong wrong. The profit on a barrel of oil is more like $10. Also providence can write off their costs for the past 25 years against any taxable profits. So Ireland won't make one red cent from an oil find of 280m barrels. The only way Ireland will make any money is if a massive oil field was discovered. It would have to be about 5 billion barrels before we start to make any money.

Profit depends on the extraction cost which for Barryroe would not be too expensive. If oil was to remain $100 profit from a small rig or FPSO would be $30 a barrel at current operating prices (based on an FPSO in the North Sea which the company I work for operate). Once they start moving more towards the Atlantic extraction costs will get a lot higher because installation and operations costs will be higher.

All in all there will never be an installation if one of the Majors deem it unprofitable regardless of find size.

Oarrack Bama

http://static.guim.co.uk/sys-images/Business/Pix/pictures/2012/10/10/1349891839169/Kipper-Williams-on-Irelan-001.jpg


http://www.guardian.co.uk/business/cartoon/2012/oct/10/kipper-williams-ireland-oil-boost

delad

brandon_flowers wrote: »

All in all there will never be an installation if one of the Majors deem it unprofitable regardless of find size.

I'm not saying providence won't make profits on this field, I'm saying taxable profits will be zero.

matt whelan

Why are RTÉ not reporting on Billion € Oil deal?

---

I'm not a conspiracy theorist and put this one down to RTÉ's journalistic ineptitude rather than any funny business with the govt. but why is that the BBC are carrying this story on their Top News Story section and our national broadcaster have given it no air-time or webpage space?

http://www.bbc.co.uk/news/uk-northern-ireland-19889948

Abi

pickarooney wrote: »

I read the thread title as 'Ireland chose to boil onions' for some reason

iamstop wrote: »

Lysdexia chum?

A) Not cool. Obvious speed read, like I did.

Tear him a new one Picka.

JonathanAnon

wohoo, let's all start buying houses *throws hat in the air"..

keith16

JonathanAnon wrote: »

wohoo, let's all start buying houses *throws hat in the air"..

house, house house. House? House.

Mickey H

davet82 wrote: »

They're saying Mary Harneys arse is a weapon of mass destruction so its looking likely

At least they'd find that.

K-9

delad wrote: »

I'm not saying providence won't make profits on this field, I'm saying taxable profits will be zero.

I can't see why not, they are allowed to write off their exploration costs, Norway did that at the start too.

Menas

MaxSteele wrote: »

I'm just waiting for a Fox News report about how the hapless residents of Ballymote in Sligo are harbouring wanted Al Qaeda operatives.

Any day now ....

Who told you about those 'guests'?

Mickey H

Trigger Happy wrote: »

Who told you about those 'guests'?

"They" did.

Skyflyer1234

We got oil, that means america is gonna find a reason to bomb us soon and take over the country.

*incoming attacks on this post*

stevedublin

Skyflyer1234 wrote: »

We got oil, that means america is gonna find a reason to bomb us soon and take over the country.

*incoming attacks on this post*

We need to be freed from Dictator Inda

L.Jenkins

davet82 wrote: »

http://www.bbc.com/news/uk-northern-ireland-19889948




So we're gonna be as rich as Sheiks! :rolleyes:


Well it is good news anyways for a change i guess

Knowing the Irish government, if we can lay claim to it, they'll probably just sell it to the lowest bidder for drilling rights. Will be worth billions to the economy and we'll sell it off for a couple of million. Fecking typical.

long range shooter

Feelgood wrote: »

Maybe its about time we listened to our Norwegian buddies.....

Thank you,i have tried for 13 years to explain it, living in Ireland,i have given it up now.:(

But drilling for oil isnt a cheap thing,thats why,so Ireland cant just raise their taxes and think they gonna get anyone to the drilling for them.:rolleyes:


http://www.oil-price.net/en/articles/oil-drilling-expensive-business.php

Menas

Finding oil in norway can be no harder than kicking the soil (slight exageration) and the success rates of exploratory wells is very high.
So the norweigan tax/royalties system suits their circumstances.

long range shooter

Trigger Happy wrote: »

Finding oil in norway can be no harder than kicking the soil (slight exageration) and the success rates of exploratory wells is very high.
So the norweigan tax/royalties system suits their circumstances.

It is when the north sea is 100 meters deep,compared to the Atlantic 1000 meters deep and rock hard soil.
And the drilling is much more complicated and time consuming,and much much more expensive.

--Kaiser--

Skyflyer1234 wrote: »

We got oil, that means america is gonna find a reason to bomb us soon and take over the country.

*incoming attacks on this post*

A popular but ignorant comment. The last two countries that the US invaded? Iraq and Afghanistan.
Who owns Iraqi oil? Iraq
http://articles.businessinsider.com/2010-02-03/markets/29955563_1_rumaila-field-oil-energy-companies
Who owns Afghani oil? Oh, wait, they don't have any...

And that's before you factor in the massive costs of both wars to the US government (estimated at 4 trillion dollars). Anyone thinking that it was for financial gain is delusional

Boombastic

--Kaiser-- wrote: »

A popular but ignorant comment. The last two countries that the US invaded? Iraq and Afghanistan.
Who owns Iraqi oil? Iraq
http://articles.businessinsider.com/2010-02-03/markets/29955563_1_rumaila-field-oil-energy-companies
Who owns Afghani oil? Oh, wait, they don't have any...

And that's before you factor in the massive costs of both wars to the US government (estimated at 4 trillion dollars). Anyone thinking that it was for financial gain is delusional

How much did the weapon makers profit by? War is a great business

--Kaiser--

Boombastic wrote: »

How much did the weapon makers profit by? War is a great business

It's a great business for weapon makers (most obvious statement of the thread award), for governments (who usually do the invading)......not so much

davet82

--Kaiser-- wrote: »

It's a great business for weapon makers (most obvious statement of the thread award), for governments (who usually do the invading)......not so much

i'm not saying you are right or wrong but out of curiousity why do you think the US invaded Iraq? (please dont say weapons of mass destruction )

--Kaiser--

davet82 wrote: »

i'm not saying you are right or wrong but out of curiousity why do you think the US invaded Iraq? (please dont say weapons of mass destruction )

I don't know.The difference is, I don't pretend to know either

davet82

--Kaiser-- wrote: »

I don't know.The difference is, I don't pretend to know either

Thats fair enough

Boombastic

--Kaiser-- wrote: »

It's a great business for weapon makers (most obvious statement of the thread award), for governments (who usually do the invading)......not so much

There are not just profits for weapon makers


It's a billion dollar industry - everything from environmental clean up to laying waste & sewerage systems

poeticseraphim

1ZRed wrote: »

IIRC, didn't our gobshite government sell it off to private companies already?

No..they did not....they gave them a license to explore....

poeticseraphim

By the way 280 million is nothing...

Venezuela has 297 BILLION barrels in oil reserves.

Saudi Arabia has about 267 BILLION barrels in rcoverable oil reserves.


So 280 million....or even 2 billion is nothing really.

The Norwegian Petroleum Directorate estimates that there are 17.6 billion barrels of oil remaining in Norwegian seas, of which 7 billion barrels are projected discoveries. [3] The number for projected discoveries carries an especially large uncertainty, as these resources have not been confirmed by drilling. The projected discoveries include resources in areas such as the sea outside Lofoten and parts of the Barents Sea where no significant exploratory drilling has been done. The parts of the Barents Sea where Norway and Russia have overlapping claims for sovereignty are not included in these estimates.


So really you hav to ask is it a big find in th greater scheme of things.


People forget our sovreign sea area is the times that of our sovereign land area. It is th size of Germany and France put together.


The Department of Communications, Energy & Natural Resources (DCENR), for example, estimates that, across gas and oil, there is probably the equivalent of about 10 billion barrels of oil in Irish waters. But it is searching for a needle in a haystack ....and it is not going to be that big of a find in word terms. And whether or not it is found to be profitable is another thing.

This is usually the preferred option of those arguing “Why do we allow foreign companies to pillage our natural resources?”. However, this would require a taxpayer investment of about €500m a year, to explore ten different locations, with the earliest pay-off likely no sooner than 2020 and maybe closer to 2030, based on past experience about time needed to discover something and then get it out. Unfortunately, it’s unlikely the State has the €10bn investment needed.

It might b better to try to make it attractive for private companies to drill away off the Irish coast. The single biggest thing that would boost the attractiveness of Ireland for offshore licences is a big find. One thing that wouldn’t help, though, is slapping on big royalties. While not having royalties may sound unwise, Ireland is not in a position to impose royalties when companies can drill with much greater prospects of success, off the British, Norwegian or Danish coast without paying any royalties.


Still we should assert national sovereignty

But providence always makes these announcements and i am certain their share prices go up.

--Kaiser--

Boombastic wrote: »

There are not just profits for weapon makers


It's a billion dollar industry - everything from environmental clean up to laying waste & sewerage systems

Again, the war cost the US government cost trillions. You do the math

Boombastic

--Kaiser-- wrote: »

Again, the war cost the US government cost trillions. You do the math

The war in Iraq has cost the US $823.2bn since 2003 - and in 2011 cost $49.3bn, only $4bn less than 2003 when the invasion happened.
Source: Congress Research Service

You do the math(s)

Grumpypants

I say if there is one group of people we can all trust it is big oil. Just look at all the reports paid for by the oil companies that say there is little or no oil/gas off Ireland it is really expensive to drill for. What more do people want?

--Kaiser--

Boombastic wrote: »

The war in Iraq has cost the US $823.2bn since 2003 - and in 2011 cost $49.3bn, only $4bn less than 2003 when the invasion happened.
Source: Congress Research Service

You do the math(s)

2.4 trillion all told, according to the Congressional Budget Office
http://www.reuters.com/article/2007/10/24/us-iraq-usa-funding-idUSN2450753720071024

How bout you explain how the US government could possibly end up in the black on this one?

Boombastic

--Kaiser-- wrote: »

2.4 trillion all told, according to the Congressional Budget Office
http://www.reuters.com/article/2007/10/24/us-iraq-usa-funding-idUSN2450753720071024

How bout you explain how the US government could possibly end up in the black on this one?

Your 2.4 trillion is estimated costs until 2017...If I project the profits made until 2017, I bet they will be in the black

s20101938

But, but.. they invaded for oil didn't they?

Another myth dispelled.