CIAO DATE: 07/2008

Renewing Energy Security

July 2002

Chatham House

Abstract

Energy security has risen on the policy agendas of many countries as a result of:

• reaction to the oil price surge of 2000;
• commitments to restrict greenhouse gas emissions following the Marrakesh Agreement;
• uncertainty about stability of supplies to final consumers following the California shortages and European fuel price protests of 2000;
• the 'war against terrorism' following 11 September, and the growing Israeli-Palestinian conflict.

This paper reviews the broad policy context within which energy security is placed, the outlook for energy supply and its key uncertainties, the security risks involved at the national and consumer level, and the scope for 'dialogues' between producers and consumers. The broad conclusions of the paper are that:

• international trade and investment provides the best route to national energy security for most countries;
• the benefits of international energy trade and investment can be compatible with policies to protect the environment and reduce greenhouse gas emissions, although such policies do not necessarily reinforce energy security;
• within countries the security of distribution of energy to final consumers requires policy support, whether or not the primary sources of energy are imported or domestic;
• the international framework for energy trade and investment will work best if the interests of countries dependent on energy exports are taken into account.

 

Resource link: Renewing Energy Security [PDF] - 296K