Energy supply security : emergency response of IEA countries 2014.

606 Pages·2014·14.988 MB·English

by  OECD

Secure Sustainable Together
ENERGY
SUPPLY SECURITY
2014
Emergency Response of IEA Countries
Secure Sustainable Together
ENERGY
SUPPLY SECURITY
2014
Emergency Response of IEA Countries
INTERNATIONAL ENERGY AGENCY
The International Energy Agency (IEA), an autonomous agency, was established in November 1974.
Its primary mandate was – and is – two-fold: to promote energy security amongst its member
countries through collective response to physical disruptions in oil supply, and provide authoritative
research and analysis on ways to ensure reliable, affordable and clean energy for its 29 member
countries and beyond. The IEA carries out a comprehensive programme of energy co-operation among
its member countries, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports.
The Agency’s aims include the following objectives:
n Secure member countries’ access to reliable and ample supplies of all forms of energy; in particular,
through maintaining effective emergency response capabilities in case of oil supply disruptions.
n Promote sustainable energy policies that spur economic growth and environmental protection
in a global context – particularly in terms of reducing greenhouse-gas emissions that contribute
to climate change.
n Improve transparency of international markets through collection and analysis of
energy data.
n Support global collaboration on energy technology to secure future energy supplies
and mitigate their environmental impact, including through improved energy
efficiency and development and deployment of low-carbon technologies.
n Find solutions to global energy challenges through engagement and
dialogue with non-member countries, industry, international
organisations and other stakeholders.
IEA member countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Secure Sustainable Together
Japan
Korea (Republic of)
Luxembourg
Netherlands
New Zealand
Norway
Poland
Portugal
Slovak Republic
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United States
Please note that this publication
is subject to specific restrictions
The European Commission
that limit its use and distribution.
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http://www.iea.org/termsandconditionsuseandcopyright/ the work of the IEA.
Foreword
The year 2014 is a special one for the International Energy Agency as we celebrate our
40th anniversary. In 1974, the IEA was founded with the primary mission of ensuring and
improving global energy security. Today, energy security still remains at the centre of the
IEA mandate. This publication returns to that core responsibility, providing an overview
of the most recent five-year review cycle of our member countries’ energy security and
preparedness.
The world has changed dramatically since the founding of the IEA, driving the Agency
to evolve and develop its capabilities accordingly. Oil demand patterns have shifted,
and, where IEA members once accounted for around three-quarters of global demand,
they now account for less than half. This is a challenge but also an opportunity. The
IEA works to strengthen and deepen relationships with key partners, pursuing dialogue
and information sharing – including in the area of emergency response. Accordingly, this
publication contains overviews of emergency policies in Chile, China, India, and in the
countries of the Association of Southeast Asian Nations (ASEAN).
While the IEA continues to evolve in response to changing energy security priorities, one
thing remains constant, and that is the need to be prepared. The Emergency Response
Review cycle provides regular peer assessments of emergency response mechanisms in
each IEA member country. These reviews are not only a powerful tool for maintaining
emergency preparedness among IEA members, but they also serve as a means to identify
and share best practices among and beyond IEA members, thus helping to enhance an
effective response to oil supply disruptions and strengthen energy security worldwide.
The global nature of energy markets, and the oil market in particular, demands such
breadth.
Still, energy security is no longer just about oil. Secure supplies of natural gas and
electricity are also of growing importance for keeping our economies and societies
functioning. The Emergency Response Review cycle described in this publication has
been the first to start incorporating these expanded priorities. Natural gas security has
become an integral part of our review process throughout this past cycle, while the
current review cycle, already underway at the time of publication, also incorporates
assessments of the electricity security of member countries. The more recent work on
electricity is reflected and discussed in an annex to this publication.
Emergency oil stocks are a very powerful policy tool for mitigating short-term physical
supply disruptions and for providing liquidity to allow market recovery. The stockholding
system has undeniably worked well in the past. A recent IEA study, discussed in this
publication, shows that not only has the system provided clear benefits, but it has done
so at relatively low cost.
As this publication also demonstrates, emergency stocks are not alone in the IEA toolbox.
Demand restraint measures, fuel switching capacity and other measures all contribute
to a range of emergency response capabilities available to member countries.
As a result, the IEA stands ready to face future energy security challenges with confidence.
This publication is produced under my authority as Executive Director of the IEA.
Maria van der Hoeven
4 Executive Director
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Acknowledgements
Much of the information presented in this publication is drawn from the emergency
response reviews (ERR) carried out in the cycle of 2008 – 2012. For that reason the IEA
would like to acknowledge the assistance of all colleagues who helped us in preparing
and conducting the reviews. We would also like to thank the Standing Group on
Emergency Questions for their critical advice and comments.
This report reflects the work of the Emergency Policy Division of the IEA. Under the
guidance of the Director of Energy Markets and Security Keisuke Sadamori and the
leadership of Martin Young, Head of the Emergency Policy Division, the work was carried
out by the following team:
Publication Coordinators: Jan Bartos and Andrew Robertson
Responsible for chapter 1, 2 and 3: Jason Elliot
Responsible for country sections: Jan Bartos, Cuauhtémoc López-Bassols, Yuichiro Nishida,
Andrew Robertson
Editorial and publishing work: Astrid Dumond, Therese Walsh, Barbara Zatlokal
Maps, charts, figures: Bertrand Sadin
We would also like to express our special thanks to Maria van der Hoeven, Executive
Director of the IEA, Didier Houssin and Rebecca Gaghen for their useful review and
comments.
Furthermore, this work would not have been possible without the help, comments or
contributions of the following people and IEA colleagues:
Phillip Cornell, Laszlo Varro, Aad van Bohemen, Simon Bennett, Greg Frost, Erica Robin,
Valerio Pilia, Toril Bosoni, Anne-Sophie Corbeau, Antoine Halff, Ichiro Fukuda, Andrew
Wilson, Charles Esser, Matthew Parry, Alexander Metelitsa, Douglas Cooke, Davina Till,
Mark Hashimoto.
We would also like to thank Muriel Custodio for her help in co-ordinating the production
process.
All errors and omissions are solely the responsibility of the IEA.
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Table of contents
FOREWORD 3
ACKNOWLEDGEMENTS 5
TABLE OF CONTENTS 7
EXECUTIVE SUMMARY 11
CHAPTER 1: Overview 13
Introduction 13
Defining energy security 13
establishment of the Iea 14
evolving oil market conditions 15
The changing oil map 18
continuing concentration of oil demand in transportation 18
Major oil supply disruptions and emergency response actions 19
Iea emergency oil response measures 21
Measures to increase oil supply 22
Measures to reduce oil use 24
being prepared is key 25
an evolving energy landscape 26
References 27
CHAPTER 2: Emergency oil response systems in IEA countries 29
Introduction 29
Decision-making structure 29
stockholding requirements 29
stockholding systems of Iea countries 30
Stockholding structure 31
Location and availability 35
Decision process for an IEA collective action 38
Stock drawdown 39
Financing and fees 39
other response measures 42
Surge production 42
Demand restraint 42
Fuel switching 46
Other short-term emergency response measures 47
concluding remarks 47
References 48
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CHAPTER 3: Natural gas security in IEA countries 49
Introduction 49
The growing role of gas in energy security 49
Trends in natural gas supply and demand 50
The relationship between gas and electricity generation 52
How emergency response for oil and gas differ 53
possible emergency response measures for natural gas 54
emergency gas stocks 54
alternatives to emergency gas stocks: other possible emergency measures 56
Supply response 56
Demand response 57
Interruptible contracts 57
Fuel switching 57
overview of gas security of Iea countries 58
The role of natural gas in IEA countries 58
Import dependency 59
Gas storage capacity 59
External infrastructure resilience 61
Policies and emergency measures 62
concluding remarks 64
References 64
CHAPTER 4: Emergency response systems of individual IEA countries 65
australia 66
austria 81
belgium 96
canada 111
The czech Republic 126
Denmark 140
estonia 155
finland 169
france 184
germany 199
greece 214
Hungary 229
Ireland 244
Italy 258
Japan 272
The Republic of Korea 287
luxembourg 302
The netherlands 315
new Zealand 331
norway 346
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eneRgy supply secuRITy 2014 8 © O
portugal 374
The slovak Republic 388
spain 403
sweden 418
switzerland 432
Turkey 447
united Kingdom 462
united states 477
References 493
CHAPTER 5: Emergency response systems of IEA partner countries 501
association of southeast asian nations (asean) 502
chile 514
The people’s Republic of china 527
India 540
References 554
ANNEX A: Assessing electricity security 557
ANNEX B: Model of Short-term Energy Supply Security (MOSES) 561
ANNEX C: Definitions and methodology 565
ANNEX D: Summary of EU legislation on stocks of crude oil and
petroleum products 573
ANNEX E: The legal basis for emergency response organisations,
stockholding and the implementation of stockdraw and
other emergency measures 575
ANNEX F: Developments in IEA emergency mechanisms 1974–2014 589
ANNEX G: List of acronyms 595
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