Energy Security

  1. GENERAL INFORMATION REGARDING ENERGY SECURITY

The level of security of the European Union is given by the EU’s ability to aggregate resources internally and to gain and maintain access to external economic resources. Any longer interruption of energy supply has a negative effect on economic growth, political stability and the well-being of European citizens.

 

Energy security plays a very important role in the economic security of the EU, which is why they must be viewed in the most serious way, and failure to give importance to energy security can cause catastrophic damage with the effect of insecurity and instability, endangering the welfare of the EU.

 

Energy security in the European Union is:

    • existence, accessibility and assurance of finite (re)sources of raw materials (oil, natural gas, coal, hydrocarbons, uranium, etc) and renewable sources, sufficient and available;
    • clear and stable international/european trade agreements on access to these finite (re)sources of raw materials from import;
    • price stability of these finite (re)sources of raw materials;
    • control of transport and distribution routes and alternatives of finite (re)sources of raw materials;
    • the safety and security of the transformation of these finite (re)sources of raw materials into electricity;
    • clear and stable commercial agreements regarding the exchange of electricity with the countries of the European Union;
    • electricity prices stability;
    • control of electricity transport and distribution;
    • the accessibility of each consumer (household/industrial) to electricity;
    • stop work accidents and technical incidents due to electrical causes.

2. ELEMENTS GENERATING INSECURITY AND INSTABILITY TO ENERGY SECURITY

Energy security is at danger by seven major challenges of the 21st century:

    • short circuits of supply flows;
    • the finite nature of energy resources;
    • use energy as a pressure instrument or energy weapon;
    • using energy revenues to support undemocratic regimes;
    • global climate changes;
    • high energy costs for developing countries;
    • lack of technical investment and human resources.

a) Risks:
The main risks to energy security are:

    • physical risks – refers to the possibility of a physical interruption of the supply and/or supply of energy resources (oil, natural gas, coal, uranium, electricity, etc.), generated by the depletion and/or abandonment of that energy source, or temporary interruptions caused by force majeure factors (natural disasters);
    • economic risks – refers to the vulnerability of the economic environment under pressure from fluctuations in energy prices, which represents the guiding price of energy. The economic risk is derived from the volatility of the markets and prices of crude oil;
    • geopolitical and geostrategic risks – energy is a vital source of interest for both producing and consuming countries. Unequal access to resources, the special geopolitical interests of the great powers, are potential sources of conflict between both consuming and producing countries. Political conflicts in energy-producing regions, including terrorist events, pose a severe threat both to current supplies of energy resources and to the prospects of the large investment needed to develop resources to their full potential;
    • social risks – instability of energy supply, whether associated with disorderly price fluctuations, relations with producer countries, or geopolitical crises, can cause serious social disruption and changes in corporate behavior;
    • risks associated with environmental protection – the risks of environmental disruptions come from sources such as: accidents caused by the chain of energy operations, technical accidents, but above all, are due to polluting emissions generated by the consumption of energy systems. Increasing energy security and addressing climate change are two of the major concerns and challenges of today’s society. Both are intrinsically linked to how we produce and consume energy. Both energy security and climate change have implications for foreign and security policies.

b) Threats:
The main threats to energy security are:

    • terrorism (terrorist attack/cyber attack);
    • political instability (political unpredictability);
    • armed conflicts (national instability);
    • piracy (commercial/industrial/economic instability).

c) Dangers:
The main dangers to energy security are:

    • lack of supply of oil, natural gas, coal, uranium and electricity for technical or other reasons;
    • the finite nature of energy resources;
    • use energy as a pressure instrument or energy weapon;
    • using energy revenues to support undemocratic regimes;
    • global climate changes;
    • high energy costs for developing countries.

d) Vulnerabilities:
The main vulnerabilities to energy security are:

  • natural hazards (hurricanes, floods, earthquakes, fires, tsunamis, etc.);
  • anthropogenic hazards (accidents, incidents, damage, corruption, incompetence, sabotage, theft, etc.)

3. ELEMENTS GENERATING SECURITY AND STABILITY REGARDING ENERGY SECURITY

a) Ways to achieve energy security:
The main ways to achieve energy security:

    • diversification of energy supply sources is the starting point of ensuring energy security;
    • the existence of a single oil market;
    • the importance of overcapacity, emergency stocks and a critical infrastructure surplus;
    • relying on flexible markets and avoiding the temptation to manage them on a small scale can facilitate quick adjustments and even minimize long-term damage;
    • understanding the importance of mutual interdependence between companies and governments at all levels;
    • developing relations between suppliers and consumers, in recognition of mutual interdependence;
    • creating a proactive physical security framework, involving both producers and consumers;
    • providing transparent information to the public before, during and after a problem occurs;
    • regular investments in technological transformation within the specific industry;
    • the obligation to research, develop and innovate for long-term energy stability and in transition periods.

b) Scenarios for the materialization of energy security:
Various scenarios regarding the materialization of an almost complete energy security are:

    • ensuring energy security through the UNO (United Nations Organization) and creating a global “dispatch” and adequate international legislation;– ensuring energy security within “regional economic, political and military blocs”, capable of balancing in the dynamics of international exchanges;
    • ensuring energy security in favor of a group of very advanced economies (“global directorship”) and at the expense of the entire international community as a whole;
    • exploring new energy sources that would push the hydrocarbon issue into the background,

c) Ways to ensure energy security:
The main ways to ensure energy security are:

    • diversification of supply sources of oil, natural gas, coal, uranium and electricity;
    • diversification of energy transport routes;
    • promoting cross-border interconnection projects in the oil, natural gas and electricity sector;
    • controlling the main transmission and distribution lines of oil, natural gas and electricity;
    • alternative energies control;
    • reforming the EU’s energy policy;
    • securing facilities, workplaces and workers: Critical infrastructure protection, Occupational Health and Safety – Electrical Safety.
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