The search for gas in Manx waters could, if successful, be used to fund government moves to cut carbon emissions or develop renewable energy.

Chief Minister Howard Quayle warned the chances of success in finding gas in Manx waters as only 50-50 and that it was premature to start planning any spending.

But he said: ’One policy option to be considered is that potential income from gas sales, should it be found, would create an ironic opportunity to fund our emissions reductions actions.’

Under government policy, gas turbines in the island will be replaced with generation from ’renewable sources’.

’I personally feel that should - and I caveat the word should - there be enough gas found in our waters then any income stream from that money should be put aside for the building of a green renewable energy source for the Isle of Man,’ Mr Quayle told the House of Keys.

Tim Baker (Ayre and Michael) said any potential windfall could give ’the opportunity for the island to shift its reliance on carbon’.

Island firm Crogga was last year granted a licence for oil and gas exploration in an area of the seabed off the east coast of the island. The area was explored in the 1980s and 1990s.