Pessimism has surged about the next 2 years in the Irish oil and gas industry after the government’s announcement of a ban on future oil licensing, according to an annual survey by PwC Ireland (OGJ Online, Sept. 25, 2019).
But optimism remains high about future oil and gas discoveries.
Ireland produces small amounts of natural gas offshore.
The share of PwC survey respondents rating the Irish oil and gas industry’s 2-year outlook unfavorable jumped to 79% from 22% in last year’s survey.
Yet 58% of respondents this year said they’re optimistic about petroleum reserves yet to be discovered, compared with 51% last year.
The survey, conducted during autumn, included Irish and international companies involved with oil and gas production, exploration, and services in the country.
The share of respondents expecting to continue Irish exploration increased to 57% this year from 49% last year.
And all respondents this year said they plan some investment in Irish exploration during the next 2 years. Last year, 16% of respondents said they planned no near-term investment.
Ronan MacNioclais, lead partner in PwC’s Ireland Oil and Gas practice, cited increased uncertainty about the global economy and the government’s move against oil exploration, which he said “has caused major concern and uncertainty in the industry.”