"“We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” "

Chinese premier Wen Jiabao 12th March 2009

""We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system."

Timothy Geithner US Secretary of the Treasury, previously President of the Federal Reserve Bank of New York.1/3/2009

Sunday, May 20, 2007

IEA getting serious about energy security - well they are talking about it

The International Energy Agency (IEA) was set up by industrial countries in 1974 to counter OPECs boycotting power. Amongst many obligations the 24 members, but as they describe it , " Emergency response to oil supply disruptions has remained a core mission of the IEA since its founding in 1974." - members must maintain emergency oil reserves equivalent to 90 days of net imports.

The European Commission’s proposed in 2002 to increase stocking obligations from 90 days to 120 days, but Member States and the Parliament opposed. This proposal was effectively withdrawn in 2003 and no proposals have been made since.

In a little noticed proposal on 15 February 2007 the European Parliament in its resolution on the macro-economic impact of the increase in the price of energy recommended both an increase to 120 days and more frequent stock reporting.

In a briefing paper Her Majesty's Government that arrived on Lord Patel's desk in a buff envelope) have identified some areas raised by the Commission, which in principle they support:

1. Reducing differences between the EU and IEA stocking systems; (to stop any fiddling in reporting)

2. Reviewing the categories covered to reflect market changes; (since 1974)

3. Replacing the requirement for treaties between member states as a condition for cross-border holdings with a more rigorous reporting system. (to stop any bi-partisan fiddling)

Overall it is encouraging that HMG and the European Parliament are taking some steps to ensure energy security. However legislative proposals will not see light of day until 2008 and then it will be some time after when anything is actually done to increase European oil reserves by 1/3rd.

The IEA produce a useful downloadable pdf "Fact Sheet on IEA Oil Stocks and Response Potential-" it is significant that this was updated on May 7th 2007.

This pamphlet explains the decisionmaking process for IEA collective action, the measures available – focusing on stockdraw – with a history of major oil supply disruptions and the IEA response to them.It also demonstrates the continuing need for emergency preparedness, including the growing importance of engaging key transition and emerging economies in dialogue about energy security.

On the 14/15th May the Ministers from the 26 IEA member countries plus accession countries Poland and the Slovak Republic, met for their bi-ennial meeting in Paris - the public were excluded. Topics were ;

- Dealing with the Short-Term Risks to Energy Security;
- Improving Longer Term Energy Security;
- The Crucial Role for Energy Efficiency;
- Technologies for a Sustainable Energy Future.

The full communique issued to the Press is available here some points worth noting in all the PR bullshit -

We welcome and consider implementing as soon as possible, further recommendations such as energy efficiency standards for new buildings, fuel efficiency standards for vehicles, and mandatory appliance standards.

We will enhance our programmes for the deployment of renewables and, subject to national policies, nuclear power, to cope with the emerging threat of global warming.

We will promote clean coal
(Oh yeah ?) and press ahead through the IEA and the Carbon Sequestration Leadership Forum (CSLF) with the full scale demonstration and early deployment of Carbon Capture and Storage, paying due regard to regulatory and safety issues. (14 May 2007 Reuters reports that the IEA's coal analyst Brian Ricketts (see picture at top) introduced a note of reality when he said that "coal in power generation use could grow by 1% per annum in the next 25 years in Europe's OECD countries", and went on to say that if environmental controls are stringent, there will be no initial growth, and a decline will occur. - Note - Germany plans 15 new coal plants by 2012 because it is cheaper to burn coal than more environmentally friendly gas apparently they maintain that coal only beomes unattractive if the ETU of CO2 emission allowances rose to Euros 45 euros (US$60.64) would gas be favourable for power generation - The Uk and Netherlands plan more coal fired power stations)

We need to respond to the twin energy-related challenges we confront: ensuring secure, affordable energy for more of the world’s population, and managing in a sustainable manner the environmental consequences of producing, transforming and using that energy.

The world can achieve a clean, clever and competitive energy future.

It is possible they also voted for motherhood and apple pie as well.

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(C) Very Seriously Disorganised Criminals 2002/3/4/5/6/7/8/9 - copy anything you wish