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Energy - Geopolitics of EU energy supply(EurActiv (English) Via Thomson Dialog NewsEdge):The geopolitical aspects of Europe's external energy policy remain within the competence of EU member states' foreign policies and a matter of national sovereignty. However, the progressive incorporation of previously secluded energy markets into one single bloc, combined with the EU's exclusive competence when it comes to commercial relations with non-EU countries, is slowly driving the issue up the EU political agenda. Oil and gas reserves areunevenly distributedaround the globe, and the largest reserves are situated in politically or economically insecure regions (Middle-East, Russia). North Sea oil and gas fields have already been exploited beyond their peak, leaving Europe dependent on non-EU countries for future supply. The Commission Green Paper on security of energy supply (November 2000) drew a sobering picture of the EU's energy situation. If no action is taken, it predicted, the EU's energy dependency will climb from 50% in 2000 to 70% in 2030. The particular situation for the main imported fossil fuels was described as follows: Oil: 45% of EU oil imports originate from the Middle East;by 2030, 90% of EU oil consumption will have to be covered by importsGas: 40% of EU gas imports originate from Russia (30% Algeria, 25% Norway);By 2030, over 60% of EU gas imports are expected to come from Russia with overall dependency expected to reach 80%.Coal: By 2030, 66% of EU needs is expected to be covered by imports.Issues:EU-Russia Energy Dialogue Launched in October 2000, this bilateral energy dialogue is aimed at securing Europe's access to Russia's huge oil and gas reserves (the country holds one third of world gas reserves). The dialogue is based on the assumption that interdependence between the two regions will grow - the EU for reasons ofsecurity of supply, Russia to secure foreign investment and facilitate its own access to EU and world markets (the EU is responsible for over half of Russia's trade turnover). One key aspect in the negotiation is whether the EU will support Russia's bid for accession to the World Trade Organisation (WTO). Issues addressed in the framework of the dialogue include: Opening Russia's domestic energy market to competition (According tothe Centre for European Studies(CEPS) Gazprom control around 70% of Russian gas production and enjoys a monopoly situation in terms of exports);improvement of business environment, including investments;cooperation on climate change under the Kyoto Protocol;nuclear safety and decommissioning (avoiding another Chernobyl)However, a breakthrough on the Energy Dialogue is still pending. EU-Russia energy relations remain highly dependent on broader EU-Russia negotiations on the "four spaces" - economic, legal, security, research - on which progress is slow (EurActiv,11 May 2005). Meanwhile, bilateral deals between Russia and separate EU states continue to prevail over a specific EU approach. DG Energy & Transport:EU-Russia Energy DialogueDG Energy & Transport: EU-Russia Energy Dialogue -Issues being addressedDG Energy & Transport: EU-Russia Energy Dialogue -Fifth Progress Report(Nov. 2004)DG Relex: EU/Russia:The four'common spaces'US Energy Information Administration (EIA):RussiaEU-OPEC Energy Dialogue The EU currently imports around 40% of its oil from the Organisation of Petroleum Exporting Countries (OPEC). Concerned about growing global competition for access to scarce oil resources, the EU held its first bilateral meeting with OPEC on 9 June 2005 (EurActiv,10 June 2005). Issues addressed in the dialogue include oil prices, greater data transparency on stocks and investment needs, especially for refineries in consuming countries. The OPEC delegation promised the EU sufficient oil supplies and prices ranging between 35 and 55 dollars a barrel. Council Presidency: EU-OPEC Energy dialogue -Joint press release(9 June 2005)DG Energy:Oil pagesDG Energy:EU crude oil imports(volumes & prices)OPEC:Official websiteOPEC:Oil outlook to 2025Caspian region - The Baku-Tbilissi-Ceyhan (BTC) oil pipeline The Baku-Tbilissi-Ceyhan (BTC) oil pipeline was opened on 25 May 2005, connecting the Azerbaijan capital on the Caspian Sea to Turkey's east Mediterranean coast (EurActiv,27 May 2005). The pipeline was mainly built to relieve the West's oil dependency on the unstable Middle East and OPEC producers. The pipeline has the potential to turn some of the poor countries of the region (Azerbaijan, Georgia, Kazakhstan and - to a lesser extent - Turkey) into wealthy energy states and change the political balance of power in the region. Russia, which has been bypassed, is one of the biggest losers of the project, both economically and politically. Bilateral trade relations - including the 1995 customs union - as well as the EU's possible enlargement to Turkey form part of the wider geopolitical context of the BTC pipeline. UNECE:Caspian sea region countries joint statement on global energy security(15 July 2005)Commission: Speech -Commissioner Piebalgs:'Baku-Tbilissin-Ceyhan pipeline is a milestoneproject for security of supply'(25 May 2005)DG Relex:The EU's relationship with the countries of Eastern Europe & Central AsiaMission of Azerbaijan to the EU:Energy dialogueBaku-Tbilisi-Ceyhan (BTC) projectUS Energy Information Administration (EIA):Caspian Sea regionUS Energy Information Administration (EIA):Caucasus regionInstitute for the Analysis of Global Security:BTC pipeline: not yet finished and already threatenedMiddle East and Persian Gulf countries The EU has the ambition to become a significant actor in the Middle East peace process and a stabilising agent for the region as a whole. Aside from its dialogue with OPEC, the Commission has put bilateral cooperation agreements in place with the six Gulf States represented in the Gulf Cooperation Council (GCC). A free trade agreement with GCC Stateswas put back on the negotiation table in 2001 after it was abandoned in the early nineties. GCC states hold 45% of the world's oil reserves. All GCC states are part of OPEC except Bahrain and Oman. Commission:Commissioner Piebalgs launches reinforced energy dialogue with oil & gas producing countries of the Gulf Cooperation Council region[FR] [DE] (2 April 2005)DG Relex:Making the EU a factor in the Middle EastDG Relex:The EU & the Gulf Cooperation CouncilDG Relex:EU-Iraq relationsDG Relex:EU-Iran relationsDG Transport & Energy:EUROGULF: An EU-GCC dialogue for energy stability and sustainability(Giacomo Luciani, European University Institute, Florence - 2 April 2005)Southern Mediterranean (including Turkey, Middle East and North Africa) Launched in 1995 in Barcelona by foreign affairs ministers, the Euro-Mediterranean Partnership draws together the EU-25 andten countries in the south Mediterranean (Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Palestinian Authority, Syria, Tunisia and Turkey). Libya has hadobserver status since 1999. The objective is to gradually set up a Euro-Mediterraneanfree-trade area by 2010. Maintaining access to Algeria's gas reserves is of primary importance to the EU if it wants to keepits dependency on energy imports from Russiatoa minimum. The Algerian economy is largely dependent on hydrocarbons (oil and gas), which make up 97% of exports, contribute 30% of GDP, and fund 65% of the state budget. The EU takes 62.7% of Algeria's exports and supplies 58% of its imports. DG Relex:Euro-Mediterranean Partnership / Barcelona ProcessDG Relex:EU-Algeria relationsSouth-East European Energy Community The treaty establishing the Energy Community of South East Europe (ECSEE) is to be signed in the summer of 2005 with ratification to follow soon after. The ECSEE is a legally binding treaty covering the electricity and natural gas sectors. It is aimed at putting the signatory countries in line with EU energy legislation in order to establish an integrated market. Its members include Austria, Greece, Hungary, Italy and Slovenia on the EU side, and Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the former Yugoslav Republic of Macedonia, Romania, Serbia & Montenegro, Turkey and Kosovo on the other side. The treaty is designed to satisfy the political and economic goal of stabilisation and development of SE Europe. DG Relex:EU and South East Europe countries create a new Energy CommunityDG Energy: speech by Commissioner Piebalgs -Energy Community is a key to the stabilisation and development of South East Europe(10 Feb. 2005)Commission/World Bank:Energy in South East Europe - Regional Policy for a Regional MarketCommission/World Bank:Energy in South East Europe - Oil and gas networksCommission/World Bank:Briefing notes: Energy Community of South Eastern EuropeCommission:Transport and Energy infrastructure in South East Europe(15 Oct. 2001)Baltic Sea Region Energy Cooperation (BASREC) BASREC was launched in 1999 by energy ministers ofDenmark,Estonia,Finland,Germany,Iceland,Latvia,Lithuania,Norway,Poland,Russiaa ndSwedenand the European Commission. Issues discussed include security of energy supply in the context of growing dependency from Russia, gas transit routes in the region, and progress on electricity and gas interconnections. Environment issues on the agenda include energy efficiency, climate change, and renewable energies such as bioenergy. In July 2005, Russia announced that work to build a 5 billion euro gas pipeline to link St Petersburg to the German town of Greifswald under the Baltic Sea would begin in September (the North-European pipeline project). The Baltic route was preferred to alternative ones under the Amber and Jamal-Europe 2 projects originally foreseen to run through Poland, Lithuania, Latvia and Belarus. BASREC:NewsBASREC:AboutArctic energy Agenda A first round table of political and industrial decision-makers from Norway, Russia, the US and the EU took place on 7 July 2005. "The Artic region is believed to be one of the most important remaining petroleum provinces," the participants stated in a declaration after the meeting. The Barents Sea, it was added, "represents an opportunity to become a new European petroleum province". The declaration highlighted the vulnerability of the marine environment as a particular challenge to the development of industrial activities in the Arctic. Norway Ministry of Petroleum and Energy:The Arctic Energy Agenda|Declaration(7 July 2005)BarentsObserver.com:Oil and energyEU-Norway energy dialogue Norway is the world's third exporter of natural gas and a major supplier of oil and gas to the EU. A meeting between Energy Commissioner Andris Piebalgs and the Norwegian Minister of Petroleum and Energy on 6 July 2005, confirmed both sides interest to cooperate on energy issues. The twosidesagreed to strengthen cooperation on energy efficiency, renewable energy, and security of energy supply, including exploration and production activities in the Arctic area. Agreement was reachedthat the Commission would join an informal forum established by Norway, the UK and Denmark to discuss issues related to the use of CO2 for enhanced oil recovery and storage in the North Sea. EU-Norway meetings will from now on take place on an annual basis. EU-Norway Energy dialogue:Joint press release(6 July 2005)Non-paper:CO2 capture and storage and enhanced oil recovery(6 July 2005)Norwegian mission to the EU:Policy areas - EnergyAfrica - Gulf of Guinea With countries such as Angola and Nigeria now in the league of major global oil suppliers, other countries in the Gulf of Guinea are seeking to emulate their success. EU relations with the region are at the moment centred on development cooperation with the Economic Community of West African States (ECOWAS). Relations focus on peace, security and good governance aspects with a strong emphasis on economic and trade integration. Luxembourg Presidency:Peace, security and good governance are the central points of the EU-ECOWAS ministerial meetingUS Energy Information Administration:Economic Community of West African States (ECOWAS)US Energy Information Administration:NigeriaUS Aid:West African Power Pool (WAPP)Positions:Energy CommissionerAndris Piebalgshas made external energy policy relations one of the six priorities of his mandate. Speaking at the World Energy Council in March 2005, Piebalgs said the EU couldsupport the member states' energy policies, saying "the new neighbourhood policy is particularly apt in the energy field". He said that future EU-Russia cooperation could be extended to include energy efficiency and technology transfer, following Russian ratification of the Kyoto Protocol in 2005 (speech). Speakingon 10 October 2004, at the Brussels think tank theEuropean Policy Centre (EPC), former energy commissionerLoyola de Palacioemphasised the close relation between geopolitical stability and energy supply security. She noted that affordable oil and gas prices in Europe had so far been secured by sufficient supplies to meet the growing demand. But this would not last forever, she warned. "We need to be realistic about our interdependence with other countries - producers, transit countries and other consuming nations - and develop our policies accordingly," Palacio said. Encouraging openness in energy commerce was a key geopolitical aspect, she said. This would require closer cooperation with supplying partners and policies to encourage geopolitical and economic stability in supplier and transit nations. TheWorld Wide Fund (WWF)has recently launched a campaign to raise the issue of energy and climate change in EU foreign policies. According to the global conservation organisation, EU foreign policy communities and energy and environment ones currently lack the mutual know-how and dialogue to complement each other. Director of the WWF's EU office, Tony Long says energy talks currently held in the framework of the European Neighbourhood Policy (ENP) are focused chiefly on enhancing EU security of supply, trade and infrastructure aspects but contain no specific objectives on the environment or climate protection. Hecriticised the ENP for not giving consideration to$60 barrel of oil scenarios and for belonging to "an old mentality and an old Commission". He then called for a new climate and energy dimension to be added to the ENP and for the Parliament to be fully engaged in the policy definition process. Latest & next steps:The EU internal market for oil and gas should be completed by 2008:European Union General reference documents & statsCommission:EU-Russia Energy Dialogue, 6th progress report Commission:Green paper: Towards a European strategy for the security of energy supply[FR][DE] Commission:Green paper: Energy efficiency or doing more with less[FR] Commission: Communication -Energy policy for the enlarged EU, its neighbours and partner countries[FR][DE]COM(2003) 262 final Commission:The European Neighbourhood policy - Overview Interstate Oil and Gas Transport to Europe (INOGATE):Maps - Natural gas pipelines Interstate Oil and Gas Transport to Europe (INOGATE):Maps - Crude oil pipelines Eurostat:Energy: yearly statistics -data 2002-(2004 edition) US Energy Information Administration (EIA):Regional Indicators: European Union (EU) StudiesDG Energy & Transport:Study on Energy Supply Security and Geopolitics(final report by the Cligendael International Energy Programme, Jan. 2004) DG Energy & Transport:EUROGULF: An EU-GCC Dialogue for Energy Stability and Sustainability(study under leadership of the European University Institute, April 2005) Energy web pagesCommission:Energy site DG Energy & Transport:Enlargment and International relations DG Energy & Transport:International relations DG Energy & Transport:Oil - overview / strategy DG Energy & Transport:Gas - Overview DG Energy & Transport:Coal DG Energy & Transport:Trans-European Energy Networks 'TEN-E' Speeches and press releasesCommission: Press release -Commissioner Piebalgs launches reinforced energy dialogue with oil & gas producing countries of the Gulf Cooperation Council region[FR][DE](1 April 2005) Commission: Speech -Commissioner Piebalgs, World Energy Council(10 March 2005) Commission: Press release -Loyola de Palacio tackles oil price dilemma and calls for a deeper international co-operation[FR][DE](24 May 2004) DG Energy & Transport:International perspectives regarding security of supply - Development within EU(seminar on natural gas in south east Europe, Istanbul, 5 May 2004) International Organisations United Nations Economic Commission for Europe (UNECE):Sustainable Energy Organisation of the Petroleum Exporting Countries (OPEC):Oil outlook to 2025 World Bank:Infrastructure and Energy in Europe and Central Asia World Energy Council: Statement 2005 -Delivering sustainability: challenges and opportunities for the enrgy industry World Energy Council:Markets, Geopolitics, Energy Security and SustainabilityGeorge Anderson;, Deputy Minister, Natural Resources Canada (5-9 Sept. 2004) World Energy Council:19th World Energy Congress - Index of papers by country(2004) Governments Britain: Department of trade and industry -Oil and gas France: Ministry of economics finance and industry -Energie Germany: Federal Ministry of Economics and Labour -Energiepolitik US Energy Information Administration (EIA):Official Energy Statistics from the U.S. Government US Energy Information Administration (EIA):World Proved Reserves of Oil and Natural Gas, Most Recent Estimates(updated 29 June 2005) CPB Netherlands Bureau for Economic Policy Analysis:FAQs about oil and the world economy(8 Dec. 2004) Turkey Ministry of Foreign Affairs:Energy Issues NGOs Friends of the Earth:Baku-Ceyhan oil pipeline Caucasus region Baku-Ceyhan campaign:Website Amnesty International:Human rights on the line - The Baku-Tbilisi-Ceyhan pipeline project(May 2003) WWF:Greening the European Neighbourhood Policy (ENP) Think-Tanks European Policy Centre (EPC):EPC Dialogue - EU Energy Supply Security and Geopolitics(4 Oct. 2004) European Policy Centre (EPC):Energy Security - A European Perspective(17 Feb. 2005) Cligendael Netherlands Institute of International Relations:Clingendael Energy Papers Clingendael Netherlands Institute of International Relations:The regional approach in establishing the internal EU electricity market(Jacques de Jong, Dec. 2004) Clingendael Netherlands Institute of International Relations:Natural gas supply for the EU in the short to medium term(March 2004) Clingendael Netherlands Institute of International Relations:Europes oil defences. An analysis of Europes oil supply vulnerability and its emergency oil stockholding systems(Jan. 2004) Centre for European Policy Studies (CEPS):The EU-Russia WTO Deal: Balancing Mid-term and Longer-term Growth Prospects? Indiana University Southeast:World Energy Reserves (Fossil Fuels) |