Showing posts with label Irish business news. Show all posts
Showing posts with label Irish business news. Show all posts

Tuesday, March 20, 2012

Ireland needs to "drill baby drill"

Tony O'Reilly Jr, head of Providence Resources,
which discovered oil off the Cork coast.
Last week we had the delicious news that an Irish oil exploration company had found a commercially exploitable oil field off the south coast of Ireland. The high price of oil and new technologies used in the discovery and recovery of oil make this oil field 30 miles off the coast just the first of what is hopefully many Irish oil fields.

It's exciting news, but I can't say I'm shocked by it because it always struck me as a little strange that the seabeds off the coast of Scotland should be full of oil and ours barren. Not barren, however, just a little trickier to get at. Presumably that's all changed now and Ireland is about to go into the oil production business.

One of the least discussed factors in the rise of the Celtic Tiger was the low price of oil in the 1990s. Ireland is heavily dependent on oil. Our small population means most of what's produced here has to be exported and there is also a high level of imports. Transporting goods in and out of our small island is a very oil-dependent exercise. In addition, tourists all have to travel here on fuel-hungry jets and road transport is the primary means by which people get to and from work. All modern economies are dependent on oil, but Ireland is particularly so.

The Celtic Tiger ran on cheap oil. It's no coincidence that our economy weakened as the price of oil shot up during the the last decade.
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Read More:

Massive Irish oil find as company hits major well off Cork coast

Dublin oil find may upset U2, Enya, top Irish celebs

Ireland is green, but her people are not
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Sure I know. We are heading towards 'peak oil' and we're all supposed to be planning for a future without oil. Great, fine. If that's true, then that makes last week's news all the more exciting because for too long the cost of oil has been a one way street here. When oil was plentiful and cheap Ireland boomed. Now that it's scarce and expensive we're in deep trouble. What last week's find possibly heralds is that Ireland can, at least, hope to cushion the blow of rising oil prices by (a) cutting imports and (b) maybe even selling some oil on the open market. That would be special.

The same company that made the Cork discovery, Providence Resources, wants to explore the seabed off the east coast of Ireland, four miles off the coast of Dalkey, Co Dublin to be more exact. That too must happen, although the drilling will be a lot closer to the shore.

The usual the forces of 'No' can count on the support some of the wealthiest people in Ireland in their bid to prevent the drilling. Dalkey is a millionaires' enclave and many of those who own mansions with see views worry that their views will be spoiled by the sights of oil rigs along the distant horizon. "C'est la vie." My interest in their view is less than minimal.

As my mother used to tell me whenever I mentioned Ireland's beauty, "You can't eat scenery." Too true and if oil really is going to continue to get more expensive then it would be nationally irresponsible at best not to get from the surrounding seas what we so badly need: oil. A few rigs dotted along the coast will be a small price to pay.

A rendering of what the view of the Irish Sea will be like with
an oil rig on the horizon.
Besides, how spoiled will the view be? I remember a few years ago someone called to me door asking me to sign a petition against a massive wind-farm proposed for the waters off Wicklow, where I live. Our view would be ruined. I remember the look of horror on his face when I told him that I loved looking out over the sea, but it was really more interesting when there was something to break the monotony of the endless sea: something like a ship or a lighthouse. Then I added "or a wind-farm or even oil rigs." He scurried off without saying good-bye.

I won't mind the sight of oil rigs on the horizon and that's with me being skeptical that they'll be as unobtrusive as they're rendered in the oil company's prospectus.

I know the green folks are going to rant, rage and scream bloody murder. Their shrill voices will ring out in desperation, pleading with us to install solar panels in our roofs, to eat only locally produced produce, and to travel by bicycle. In other words, they want us to live the lives that the subsistence farmers enjoyed here in the 1950s.

Well, you know what? There's a good reason why that lifestyle was shunned by the very people who were living it: it's hard. Most Irish people prefer the variety, the comforts and the opportunities that our oil-based economy provides. If there is oil off the coast of Ireland and this oil can help maintain our lifestyles then there is only one thing to do: drill, baby, drill.

Tuesday, January 17, 2012

When Steve Jobs and Apple first came to Ireland

Steve Jobs opened plant in Cork in 1980
December 23, 1980 and thousands of Irish people were facing the prospect of no electricity on Christmas Day. The basics of modern life - electricity, telephones, indoor plumbing - were still relatively new in Ireland then. Anyone describing the modern, telecommunications-dominated world of today would have sounded like a science-fiction writer, not a businessman about to open a new factory. Yet, Steve Jobs was in Ireland talking about the future.

My wife and I were going through boxes of my father-in-law's papers and pictures over the weekend. We found a treasure trove of genealogical tidbits such as dates of birth, marriage certificates, which provide lost maiden names, etc.

There were also a few old newspaper cuttings, which are always interesting. Airplane, The Blues Brothers, Brubaker and The Shining were among the movies playing that Christmas in Dublin.

There were a couple of news items that caught my eye.

Christmas, of course, was a focal point. An industrial dispute at the national electricity company threatened to leave many people in the west of Ireland with no electricity for Christmas. I don't know how that turned out. There was an article about a man spotted stealing a piece of buttered bread from the sparrows and feeding it to the ducks. They were simpler times.

There was a short item on a speech by Pope John Paul II, who was warning of the dangers that arise when political blocs "seek to assert their rights over small nations." Although he was alluding to his native Poland, Ireland in 2012 is being squeezed very hard by the political bloc that currently controls the European Union.

There was, however, one article that really stood out, that leaped off the page. An American company was opening a new factory in Cork and the the head of that company was saying some radical things. The company was Apple Computers and the man was Steven Jobs (or Stephen Jobs - the caption writer didn't agree with the journalist).
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Bono brands Steve Jobs the Elvis of the computer world

In Cork Steve Jobs found the perfect match for Apple

Steve Jobs was a great American genius
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You can sense journalist Dick Cross is skeptical where he writes that "Irish housewives could be throwing away cookery books and taking their recipes off the screens of mini computers" and doctors will similarly store and retrieve patient histories. Cross' skepticism is tempered when he notes that Jobs has become a "millionaire in just four years."

Cross wasn't the only non-believer in attendance at the opening or at least his report indicates he wasn't. "At the Holyhill, Cork, assembly plant there is no time clock to monitor the coming and going of the workers. Many experienced trade union people lifted their eyebrows in disbelief at the concept." Jobs trusted his employees, but that was clearly not the norm in Ireland in 1980.

Nothing earth-shattering in the report, but I couldn't help wondering what those tough union folks made of Jobs and Apple over the 30 years since the Cork plant opened. Did they regale people with stories of how they were there when it all started, how they could see it in his eyes that he and Apple were going to be wildly successful and that the people of Cork were on a winner from the start? Or did they admit that they thought he was a loon and that his way of doing business would never work in Ireland?

These days "Irish housewives" don't save recipes on their "minicomputers." They call them up from the web using their iPads. Irish doctors presumably store all sorts of patient data in computer databases, although based on what I heard from the Minister for Health this morning, our hospitals have a way to go on this yet.

I don't know if other people shared Jobs' vision back in 1980, but I bet there were very few in Ireland. Possibly none, although I bet those who were the first employees of Apple in Ireland were quick converts. I can well imagine that many who read that report simply thought to themselves that they'd be happy if they could get a reliable telephone and electricity supply. They probably didn't so much disbelieve Steve Jobs as assume he was actually from "a Galaxy Far Far Away" from Ireland.

Tuesday, November 15, 2011

Michael O'Leary and Ryanair are great for passengers and for Ireland

O'Leary - always outrageous, always in the headlines.
Ryanair. If you live in America and you know the name Ryanair it's probably because (a) you know the airline is legendary for its abysmal customer service and/or (b) you know of Ryanair's Chief Executive, Michael O'Leary, who adores playing the clown, saying the most outrageous things – especially when there are members of the media around.

The media and people in general in Ireland, in England and pretty much anywhere Ryanair flies love to moan about Ryanair. The 'customer service stinks,' the 'hidden charges are unfair,' the flights 'take you to airports way out in the sticks' (Dublin Airport is unusually central) and, of course, 'O'Leary is an arrogant windbag.'

You know something? It's all true. You know something else? I don't care. I love Ryanair. Okay, 'love' is the wrong word, but generally speaking I am quite a contented customer. In fact, I'm so contented that I've often wondered if O'Leary would deliberately sabotage my travel plans if he knew because O'Leary gives the impression that contented customers are the last thing he wants.
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Read More:

More Ryanair News

Storm as Ryanair boss says he'll allow porn on planes

Ryanair's O'Leary: Greek passengers ‘can pay in mountain goats'
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Yet, I have flown on Ryanair many times and despite the poor customer service, despite the lack of comfort, despite the constant selling by the cabin crew and despite the fact you have to line up like a kid waiting for the school bus in order to board the plane I keep coming back for more. Why? Because the cost of flights for the whole family is the lowest in Europe and from what I can tell, lower than any airline offers in America.

back of a Ryanair seat showing safety instructions
Ryanair airplanes.
No seat pockets means no safety cards -
painted on back of seat instead.
{Photo thanks to Wikipedia.}
Over the past five years we have been to England, Scotland, Belgium, France and Germany on Ryanair. We've been to most of those places more than once. The most we ever paid for flights was €150 ($200) - for five tickets. Most of our trips cost just under €100 ($135). Again, that's five tickets. A few years back I was able to get 4 round trip tickets to London for €0.08 (that is 10¢, one dime).

We have been able take the children places and show them things I never thought would be possible thanks to Ryanair.

Sure it can be annoying. You have to be willing to go when they want you to go. You have to use the 'right' card to buy your tickets. You have to pack lightly and tightly. You have to be willing to endure discomfort for 60-90 minutes. You have to play by Ryanair's rules. We're able to manage all that, which is why we fly Ryanair.

We're not alone either. Ryanair is one of the world's most popular airlines, despite being almost universally loathed. 74m passengers will fly on Ryanair this year. I don't know how many of those are contented passengers, but O'Leary doesn't care if they're contented so long as they keep coming back.

As for O'Leary, his clownish behavior and outrageousness is so transparently a marketing ploy that I'm amazed the media hasn't started ignoring him. Ryanair doesn't use advertising to publicize the fact it's the lowest cost airline in Europe. It uses press releases or O'Leary's mouth to get that job done.

Whenever there's a lull in the news O'Leary pops up with an announcement that Ryanair will get rid of co-pilots or charge passengers to use the bathroom or allow to passengers to watch pornography on board or whatever. He says something shocking. The media loves it and reports it breathlessly. All of this has the effect of reinforcing one message: Ryanair is cheap.

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Read More:

More Ryanair News

Storm as Ryanair boss says he'll allow porn on planes

Ryanair's O'Leary: Greek passengers ‘can pay in mountain goats'
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All of which keeps Ryanair's shareholders sweet and O'Leary does care about those people. You can tell O'Leary cares about Ryanair's shareholders because when he's on CNBC the clownishness is replaced by seriousness as he discusses passenger load figures, revenues, aircraft purchases, etc.

Shareholders, in turn, may not love O'Leary, but they're probably contented too. Despite difficult trading conditions for European airlines, Ryanair is growing bigger and more profitable.

Ads on the planes -
another revenue stream for Ryanair
{Photo from Ken Fielding}
At some point O'Leary will step down. At the moment he's the closest thing Ireland has to Steve Jobs. Although he's more like the 'anti-Jobs.' Everyone knows O'Leary, identifies him closely with the business he runs, but generally he's despised as is the company he heads.

The Irish media loves to lambaste O'Leary and Ryanair, but both have been great for this country. Where other businessmen have headed for tax exile, O'Leary has remained in Ireland.

Ryanair can take a lot of the credit for the competitive air fares and the boom in tourist numbers Ireland has experienced over the past 20 years. Soon Ryanair will be the biggest company on the Irish stock exchange. It is already the best Irish company.

Thursday, October 6, 2011

In Cork Steve Jobs found the perfect match for Apple

Parking lot at Apple's Irish HQ
Apple in Cork since 1981
The death of Steve Jobs reminds me of a thought I had not that long ago, that is it's so appropriate that Apple is based in Cork and Microsoft is in Dublin. Jobs chose well when he chose Cork.

Apple first set up shop in Cork back in 1981. I don't know what the locals thought at the time, but I've more than once detected a hint of pride in Cork people that Apple's European base is in Cork. As well as being one of the largest employers in the area, the people of Cork seem to feel that Apple's stylish image reflects well on them. They're 'Apple people.'

I'm not. I have never bought an Apple product. In fact, I've only had minimal contact with Apple products since I left the Apple IIe behind in high school. I guess you could say that I don't really get the whole Apple thing.

I never owned or even held an iPhone. I hate iTunes. My daughters' iPods? I prefer my MP3 player. My wife's iPad? It's nice and all, but I prefer my netbook. Those MacBooks? Well, I've never owned one or even really tried one. Always too costly. Microsoft Windows and Dell are more my speed. Clunky, probably more unreliable, but I can always get them going again when something goes wrong.

Of course 'Apple people' don't agree with me. 'Apple people' love their MacBooks, their iPods, their iPhones and the whole Apple thing, which of course, included Steve Jobs.
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Read More:

Steve Jobs was a great American genius

U2’s Bono defend’s Apple’s Steve Jobs' lack of philanthropy

Apple launches new iPhone - Ireland’s most popular smart phone
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'Apple people' are devoted to Apple. They've got something of a chip on their shoulder. They also like to think they're a bit different. They're rebellious. Just like Cork people.

Cork, the Rebel County, inspires a similar loyalty and devotion. They also share that mindset of being a breed apart.

And just as Apple had Microsoft to aim at, to direct their ire at, so Cork has Dublin. It's all too fitting that Microsoft chose Dublin for its European headquarters. Perfect symmetry.

Far less loyalty and devotion among Dubliners for their home city/county. For many it's simply the most practical choice of home. Nothing to get excited about.

Similarly with 'Microsoft people.' They don't profess any loyalty or love for Microsoft, but it's functional and it's cheap so they stick with it.

That's me. Perhaps if I'd opted for Cork rather than Dublin when I first came to Ireland I'd be one of the 'Apple people' - an iPhone-iPad-MacBook-owning man, firmly committed to good design and stylish looks. I'd probably dress better too.

{Photo from map.google.ie}