CIAO DATE: 07/2008
July 2002
This paper investigates the impact on security of supply of increased import dependence and liberalization. It looks at the four different parts of the traditional security framework: reserves and reserve-to-production ratios, long-term contracts and multi-billion-dollar investments, import dependence, and emergency security events, all of which may be affected by liberalization and competition. In particular, using the UK as an example, it shows how a liberalized market requires much greater transparency in terms of the security events to which market players are required to respond without curtailing supply to firm customers. It sets out a framework for defining these events and for allocating the costs associated with responding adequately to them.
Resource link: Security of European Natural Gas Supplies [PDF] - 1.2M