УДК 005.334(477)-049.5

V. SMOLETS

ODESSA NATIONAL MARITIME ACADEMY

UKRAINIAN ADOPTION OF THE INTERNATIONAL PRACTICE IN MANAGING THE ENERGY SECURITY CRISIS

Over the past decade, oil supply disruptions in the Middle East, gave impetus to the development of anti-crisis measures in energy security management.

Worst crisis was associated with the revolution in Iran in 1978. In early 2003, the market suffered from supply disruptions caused by coincidence of several events:

- A strike at the national oil company of Venezuela;

- The war in Iraq;

- Strikes in Nigeria.

The crisis was characterized by a total reduction of oil supplies during peak demand [1].

After the oil embargo of 1973 was marked by the global economy's energy. What prompted the emergence of the International Energy Agency (IEA).

IEA is a specialized forum of 28 industrialized countries, which include Australia, Austria, Belgium, Great Britain, Hungary, Germany, Denmark, Greece, Ireland, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Poland, Portugal , the Slovak Republic, the USA, Turkey, Finland, France, Czech Republic, Switzerland, Sweden, South Korea and Japan [1].

Government of the member countries of the IEA pledged to make joint efforts to overcome the crisis in the supply of oil. They also agreed to exchange information in the field of energy, and to coordinate policies and to cooperate in the development of programs for the rational use of energy. These provisions have been laid down in the Agreement on the International Program for the Development of Energy, with following basic purposes:

- To maintain and improve the system for responding to disruptions in oil supply;

- Contribute to the rational energy policies in a global context through co-operation with countries that are not members of the organization, as well as industry and international organizations.

- Operation of a permanent information system on the international oil market.

- Improving the structure of energy supply and demand in the world by developing alternative energy sources and increase energy efficiency.

- To promote international cooperation in the field of energy technology.

- Assistance in bringing energy policy with efforts to protect the environment.

Since its inception, the IEA has taken part in two cases additional oil supplies to the market through coordinated action: in response to the Gulf War in 1991 and after the hurricanes in the Gulf of Mexico in 2005 Although the system of oil supply has undergone tremendous change since the oil crises of the 1970’s. Still a high risk of supply disruption, which can lead to serious economic consequences [1].

The limited production capacity, both upstream and in the refining of oil, increases the risk of violation of the balance between supply and demand. The current balance is so fragile that the failure of supply of even very small amount can significantly influence the market. Rising global demand increases tension in the market, exacerbating the need to invest in capacity expansion.

Uncertain investment climate in some producing countries, which is often described as nationalism against ¬ governmental natural resources, can also prevent the development of supply in the future.

Geopolitical tensions and terrorism create uncertainty regarding the continuity of fuel supplies. This is a "risk premium" exacerbating the volatility of an already busy market where existing supply of oil supplies are increasingly concentrated in a few countries. Natural disasters, such as extreme weather conditions, can upset the balance of supply and demand, lead to the disruption of supply or cause an increase peak demand. unforeseen events!

Ukraine is not a member of the IEA, but the implementation of policies and practices should be considered in the IEA shaping national energy programs.
For Ukraine, the use of reserves should be a key aspect of the action. Therefore, the country must have a stockpile of oil in the amount not less than the amount of net imports in the previous year for a period of 90 days. Ukraine needs to develop a program of demand reduction, which could be implemented in the event of a crisis in order to release additional quantities of oil delivered through reduced consumption. Possibility of a sharp increase in oil production and the transition to alternative fuels are additional measures taken by IEA member countries for a positive impact on the market during the supply crisis. However, the lack of opportunities for the use of alternative fuels in the production and transmission of electricity, as well as limited a sharp increase production capacity for oil do today, these measures are not effective for Ukraine [2].

The Ukrainian energy security strategy should allow:

- Monitor progress towards targets and benchmark Ukraine’s results internationally.

- Energy-efficiency policies should focus on lower gas consumption in the district heating sector and metallurgical industry by upgrading and modernizing them.

- Increase oil and natural gas production, upgrade the gas transmission system and diversify supplies.

- Make full use of the country’s potential for renewable energy development, particularly biogas and municipal waste for heat and power generation, and maintain a nuclear electricity capability.

References:

1. http://www.iea.org/newsroomandevents/pressreleases/2012/october/name,32331,en.html

2. http://www.iea.org/publications/freepublications/publication/EPPD_Brochure_English_2012_02-1.pdf