The European Union’s oil and gas stocks was the forcus of attention at an energy ministers’ meeting held in Thessaloniki on February 22, when Greece attempted to win around doubting member states to a compromise on controversial proposals to boost Europe’s reserves.
The proposals, which would increase the obligatory level of oil stocks from 90 to 120 days and introduce similar measures for gas, were put forward by the European Commission last year but received a frosty reception from national capitals.
Paris and London were among those objecting to the key role the proposals would give the Commission in deciding when to use the stocks, as well as to the principle that the stocks could be released to assuage movements on the market, in addition to restoring disrupted supply.
Recent discussions between national experts have established that most member states want oil and gas stocks to remain under the auspices of the International Energy Agency, rather than passing to the EU.
But Greece, which is chairing EU meetings in the six months to June, hopes the other countries will at least sign up to a “modernisation’ of the current oil legislation and comparable measures for gas.
Greece used the informal meeting, at which Alvaro Silva Calderon, Opec’s sectretary-general, was present , as a sounding board for its ideas. Mr Silva Calderon and the energy ministers also talked more generally about the state of the oil market in the run-up to possible war in the Gulf.
Greece hopes that the ministers will be able to sign up to a deal at a formal meeting in May, but still has much opposition to overcome to attain approval for even watered-down measures.
Commission officials maintain that it may take a dramatic jump in oil prices to convince doubting member states.
“Several countries say they have no need to increase their stocks from 90 days to 120 days,” said a Commission spokesman. ‘Since at the moment there are 114 days of stocks, the main resistance is more to the way the stocks should be used [rather than to the increase itself]”.
(By Daniel Dombey Financial Times, 23/02/03)