Should Ireland's Gas Resources be Nationalised?

[ForYourInfo]

Given the recent collapse of some of the world's largest financial institutions (with more to follow, and all that potentially leads from that) and with it the destruction of those 'free market' myths Ireland's economic foundations are weakening further.

The 'capitalist' rule book has been completely thrown out the window (though we'll have to accept that it has been tied to a string and dropped out side that same window for as long as it's been around), with government bailouts and the nationalising of certain institutions. Previously disallowed mergers have been approved, despite the fact they embarrass the slim controls on market share and consumer 'choice' - the financial market is now controlled by even fewer people.

Pair this with the imminent threat posed by Global Warming and we have found ourselves at the precipice of a serious national disaster.

It is widely accepted that the deals given to those multi-nationals for drilling rights and taxation regime etc in relation to the Corrib gas field were in effect an 'act of economic treason'. The value of these reserves, both monetarily and practically, grows exponentially as each day goes by. According to well out dated figures, the value of the Corrib field alone is well over €50 billion euro. And according to a recent letter in the Irish Times it could be over €700 billion euro (http://www.irishtimes.com/newspaper/let ... 36588.html I haven't had a chance to check this figure, but would assume that the Irish Times doesn't print it unless they have a source).

As it stands the state will receive almost nothing, save for the opportunity to purchase the gas at market prices. Therefore it is obvious that state control of the gas reserves is in the interests of the state.

Should these reserves be nationalised?

[stewiegriffin]

I have to admit to being a little ignorant on the finer points , but with 'energy security ' being a buzz word right now , it seems crazy to flog the family jewels to a multi national .

[ForYourInfo]

I have to admit to being a little ignorant on the finer points , but with 'energy security ' being a buzz word right now , it seems crazy to flog the family jewels to a multi national .

If only we had 'flogged' them stewie, if only. We (I should say - our corrupt establishment) gave them away.

[lowtaxireland]

yeah...i'd nationalize them.....

[ibis]

Corrib is about two-thirds the size of Kinsale. Assuming all the gas pumped from Corrib goes to Ireland (which under the deal with Shell it also does, but at wholesale gas prices), it would supply about half our needs for about 4-5 years and then tail off. The reason the licensing terms for Shell were so favourable is because Corrib isn't really much of a find, and we need the oil companies to keep looking.

[Harpo]

Corrib is about two-thirds the size of Kinsale. Assuming all the gas pumped from Corrib goes to Ireland (which under the deal with Shell it also does, but at wholesale gas prices), it would supply about half our needs for about 4-5 years and then tail off. The reason the licensing terms for Shell were so favourable is because Corrib isn't really much of a find, and we need the oil companies to keep looking.

How much is the gas in the corrib field worth in at current market price?

[droghedasouth]

Even if you nationalise it, you still have to provide fair compensation.
So then we end up in the gas business.
Then we need to go and dind the stuff (other that the corrib field) and get it out of the ground etc.
Might be cheaper just to buy shares in the company.

Sounds like the usual left wing obsession with controlling natural resources.

[ultra-vire]

You are an idiot to be honest.

[Thac0man]

So when would be a good time to nationalise the gas? When Shell finish the job that the irish government would have to do anyway to get the gas ashore?

Shell is there because as a nation we do not have the expertise and probubly the money to set up a gas extraction opertaion like Shell can do. That is a basic truth. Whatever Shell is going to spend, if the Irish state were going to attempt the same the price could be quadrupled at the very least(unless anyone here wants to argue that we as a nation are good at infrastrucure, either in terms of cost or schedule).

Now given that we do not have that expertise, what makes anyone think that the State could run the Shell operation and still come out as good or better in terms of finance/profit? Lets not forget that the operation would also fall under the remit of SIPTU so yet another strangle hold on our collective necks we would be paying for - and by the way no matter who runs the operation, we would be paying for the gas we use anyway.

Its worth pointing out that the only actual infrastructure project that has been a success in terms of service and profitability is the LUAS - a privately run operation.

[Harpo]

Even if you nationalise it, you still have to provide fair compensation.
So then we end up in the gas business.
Then we need to go and dind the stuff (other that the corrib field) and get it out of the ground etc.
Might be cheaper just to buy shares in the company.

Sounds like the usual left wing obsession with controlling natural resources.

The usual FG principal about not giving a damn about people and never upsetting the status quo.