Venezuela, with its 148 trillion cubic feet of natural gas, has the largest proven gas reserves in America

Yes but not in the world. In your comment you did not stipulate America. Interesting point on gas powered cars. But it is still quiet expensive to transport it to the petrol (I guess that would be gas) station. Pipelines would not be an cheap option so then it has to be done by LNG or CNG which would vastly increase the price of the fuel at the pump.

As far as comparing Ireland to Norway.. well I’ll though out an appropriate euphemism, you don’t shit on your own doorstep. Here’s an Nigerian example of Shell fiddling the books

1 Shell is Dutch and English not Norwegian so it is not their doorstep. Indeed if you consider Norway it’s doorstep that makes Ireland the porch.

Here’s an Nigerian example of Shell fiddling the books

And 2 are you comparing operations in Nigeria to Ireland. Are you saying that we do not have more policing of revenue in Ireland then Nigeria. The business practices that you can get away with in Nigeria you can also get away with here yet you can not get away with in Norway? Please show me how you can “fiddle the books in this jurisdiction”

The article you linked to also said .

Because the operational budget is set by Shell, and because the NNPC is plagued by corruption and lacks the expertise to verify production claims, the operating company has a powerful incentive to inflate costs.

Are you also saying that the revenue commissioners in Ireland are plagued by corruption? In that case how come we get any corporation tax at all. Surely everyone would “fiddle the books” and pay no tax.

The BBC article you have shown that they misstated their reserves and got called on it. That shows that the system works.

Indeed I don’t see your problem with overstating reserves. In your plan you are taking royalties from their reserves so you would get more money then they should be giving you. You should welcome them overstating rather then understating.

You have yet to tell why Norway the best hydrocarbon economy in the world, with possibly the best record in using resources, indeed more experience in dealing with oil companies then you are me. Choose to use tax on profits not royalties as the means to get money from oil and Gas. They deal with the exact same oil companies as well.

Yep i’m a proud green party supporter, but i’m also a pragmatist and no one solution will resolve our current environmental crisis .By this I mean that we need to select the cleanest of energy sources currently available as we make the transition to renewable energy over the coming century. As gas is the cleanest of all the hydrocarbon products on offer, it should be preferentially utilized over oil/coal over the next 50 years for our electricity needs until wave/wind/? is in place. Natural gas produces half as much carbon dioxide, less than a third as much nitrogen oxides, and one percent as much sulfur oxides emissions from power plant when compared to a coal/oil plant (cite 4)

As far as comparing Ireland to Norway.. well I’ll though out an appropriate euphemism, you don’t shit on your own doorstep. Here’s an Nigerian example of Shell fiddling the books http://www.project-syndicate.org/commentary/okonta3 “This image of Shell as a sensitive, caring company mocks the evidence. At the heart of Shell’s oil reserves scandal is the desire for profit and the elaborate mechanisms that it nurtured in collaboration with corrupt military dictators over the years to ensure that its operations yield enormous dividends at the expense of ordinary Nigerians” . Or if you want a more reputable source here a 2004 BBC article http://news.bbc.co.uk/2/hi/business/3524438.stm “Shell overstated oil reserves by 250 million barrels in Norway. That’s after discovering 3.9 billion barrels had – metaphorically, at least – evaporated in January.”

The point I’m trying to make here simon, is that oil companies are not to be trusted based on historical evidence. Therefore royalties seems a safer and surer bet then asking for a cut from net profit.

No. Venezuela is the largest known reserve of oil not gas. And that is based on oil sands which are supposedly very difficult to extract from and require a higher oil price extract from. The second is Saudi Arabia which has very little exploration in the last decade or so may have much more. But that is a moot point

The largest Gas reserve is in Russia. With 3/4 quarters being in Russian and the middle east. Who as we all know from the Ukrainian incident are not afraid to use it for political means. I am surprised that I am argueing with a person who links to the Green Party site on the merits of renewable energy, but anyway I think renewables are going to be the major source of energy for electricity. Certainly they are coming to the point where they are economical in comparison to gas With oil still being needed to run cars. Their is alternatives to gas/oil powered power stations, how ever no alternative to the internal combustion engine is particularly good. Hence why I think gas is replaceable. If even the Greens don’t think renewables can replace hydrocarbons we are fucked.

I wonder what is consider start-up costs
Probably the exact same start-up costs as the start-up costs that the Norwegians allow companies to write off aswell.

well they can fiddle away with the book, selling gas at what ever rate they wish to there own distribution companies,

How are they going to “fiddle the books”? How come they don’t “fiddle the books” in Norway. They base their taxation system not on the value of the gas but the companies profits not royalties.

Why should we do the exact opposite to what is generally considered the best hydrocarbon economy in the world?

Please give me some solid facts not vague sound bites. I tried my best to give as many facts and terrible puns as I could in this post. I quoted the Norwegian tax code you give me “fiddle the books”

My second point/question is related to shell Corrib field. You state that they have already spend 500 million, and have yet to make a penny. The Corrib field is 60% the size of Kinsale, lets say that the Corrib gas will be worth 4 billion over the next 15 years. How much profit will Shell state they have made from that field, well they can fiddle away with the book, selling gas at what ever rate they wish to there own distribution companies, and report a profit of 5% of that 4 billion, or 200 million or which we get 25%.. 50million from 4billion field?.. whose the winner there? This is just speculation, of course Shell may be a very honest company believing in fair practices and treat Ireland like an equal partner, but somehow I just don’t think that’s going to happen.. For instance, 500 million startup costs seem very high, but then when you consider that this can be written off against future profit, resulting in less tax paid, it make sense.. Its in Shells interest for it to be high.. I wonder what is consider startup costs, new transportation ships/Dublin HQ/holiday to ireland for the execs/new surrounding fields rights/land purchases?

It seem to me a much better deal for Ireland to drop the Corp Tax on oil/gas exploration (25% of zip is zip) and just charge royalties(20%?) on what they extract based on current gas prices per year. We get paid regardless of how little corporate profit they make.. When you have teams of accountants behind you figuring out every loop hole that can be exploited, it doesn’t make for a trustworthily relationship. It boils down to – We should take our cut before they take theirs.

(Just noticed I have invented a new way to spell refrain)

By the way I never meant the “crude” pun. But I do like it

Also I think you could be mixing me up with Simon McGarr I am not at leviathan