Whitegate refinery imports and capacity
Barry asked about crude-oil imports and Whitegate’s operating capacity, then challenged its underuse while the State company had products refined abroad. Colley acknowledged reduced throughput and undercapacity but cited cost considerations and said the 1980 fall was distorted by a dispute; he rejected the claim that lead-standard limitations explained the decline. The exchange ended with a brief procedural dispute between the Chair and Minister.
andMr. L. Burke asked the Minister for Energy the figures for the importation of crude oil to the Whitegate oil refinery in each of the last five years; and the capacity at which the refinery was operating in each quarter of those years.
Comment on this
With the permission of the Ceann Comhairle I propose to circulate the reply which is in the form of a tabular statement:
Whitegate Oil Refinery, Co. Cork.
*Estimate.
Footnotes.
(a)Throughput includes crude oil and feedstocks.
(b)These percentages reflect normal shut-down for maintenance.
(c)Deviation from three previous quarters of 1980 reflects temporary shut-down in October 1980 due to distribution problem.
Comment on this
Do the figures indicate that the amount of oil going through the refinery has decreased in the last two periods?
Comment on this
Yes. Certainly the total amount that came through last year was a decrease on the previous year but I must point out that the figures are affected to some extent by the dispute which occurred last September-October.
Comment on this
And that at the same time the Irish National Oil Company is getting petroleum products refined outside the country?
Comment on this
Is it not a bit silly to talk about building a second refinery when at the same time a State company is getting other goods refined outside the country while the only refinery in the country is working well below full capacity?
Comment on this
It is not as simple as that, because there is a question of the cost of the refining contract and the products produced. It is not a simple comparison of whether you do it here or do it abroad. Other factors including those I mentioned have to be taken into account. As far as the Irish National Petroleum Company is concerned, they would wish, if possible, to have as much as possible of the oil at their disposal refined in this country.
Comment on this
It may not be simple for the Minister but it appears to be very simple to the people working in the refinery who see it operated at about 40 per cent of its potential and see their jobs endangered. Frequently we bear cost increases because we want things done inside our own jurisdiction rather than have them done abroad. I would ask the Minister to consider that aspect of the matter.
Comment on this
I should not like anybody to think that the figure the Deputy quoted was accurate about 40 per cent of our potential——
Comment on this
Could the Minister say if the long-term reduction, not the distortion caused by last year's dispute, in the throughput at Whitegate, is in any way related to the fact that Whitegate's refining capacity does not enable it to reduce the lead content of the petroleum to an acceptable EEC standard?
Comment on this
No, I do not think that is correct nor would I like the House to have any false impression about this matter. The total throughput for 1978 was almost the same as in 1977 and the figure for 1979 was greater than in 1978. So, the reduction was in 1980 but that has been distorted by the dispute.
Comment on this
If the Ceann Comhairle could assist me by preventing questions being put to me, I would avoid answering.