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Oil Security Short- and Long-Term Policies


  • Valeria Costantini

    (ENEA and Fondazione Eni Enrico Mattei)

  • Francesco Gracceva

    (ENEA and Fondazione Eni Enrico Mattei)


Increasing oil security represents one of the most important policy actions, especially within IEA countries. Short and long term mechanisms could help such goal. On the short term side, revision of IEA emergency response oil stock system has been discussed. The attention is mainly focused on three issues: the high costs of stock management for private industries, the possible use of strategic reserves to smooth price when no high supply disruption has taken, the extension of IEA emergency system to non-OECD countries. The main actions specifically proposed by the European Commission are: an harmonisation of national storage systems, with the institution of public and private agency, a wider co-ordinated use of security stocks, and an increase in the physical amount of oil stocks. Long term measures for enhancing oil supply security can be seen on the demand-side and the supply-side. Main demand-side policies could be the following: energy saving and efficiency, investments in research and technology, and reduction of oil price inelasticity especially for transport sector. Main supply-side policies can be summarized into co-operation and institutional promotion for supply diversification of suppliers/routes. Main factors that could affect described policies could be the liberalization of international trade even in the energy sector and the increasing role of oil demand from developing countries.

Suggested Citation

  • Valeria Costantini & Francesco Gracceva, 2004. "Oil Security Short- and Long-Term Policies," Working Papers 2004.115, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2004.115

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    References listed on IDEAS

    1. Brown, Marilyn A., 2001. "Market failures and barriers as a basis for clean energy policies," Energy Policy, Elsevier, vol. 29(14), pages 1197-1207, November.
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    Cited by:

    1. Weisser, Hellmuth, 2007. "The security of gas supply--a critical issue for Europe?," Energy Policy, Elsevier, vol. 35(1), pages 1-5, January.
    2. Annalisa Zezza, 2007. "The economic and environmental sustainability of biofuel production," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, November.
    3. Christian Egenhofer & Kyriakos Gialoglou & Giacomo Luciani & Maroeska Boots & Martin Scheepers & Valeria Costantini & Francesco Gracceva & Anil Markandya & Giorgio Vicini, 2004. "Market-based Options for Security of Energy Supply," Working Papers 2004.117, Fondazione Eni Enrico Mattei.

    More about this item


    Oil; Security; Energy;

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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