ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(80)247
Vol.1980/0077

Disclaimer
Conformément aurèglement(CEE,Euratom)n°354/83duConseildu1erfévrier1983
concernantl'ouvertureaupublicdesarchiveshistoriquesdelaCommunauté économique
européenneetdelaCommunautéeuropéennedel'énergieatomique(JOL43du15.2.1983,
p.1),telquemodifiéparlerèglement(CE,Euratom)n°1700/2003du22septembre2003
(JOL243du27.9.2003,p.1),cedossierestouvertaupublic.Lecaséchéant,lesdocuments
classifiésprésentsdanscedossierontétédéclassifiésconformément àl'article5dudit
règlement.
InaccordancewithCouncilRegulation(EEC,Euratom)No354/83of1February1983
concerningtheopeningtothepublicofthehistoricalarchivesoftheEuropeanEconomic
CommunityandtheEuropeanAtomicEnergyCommunity(OJL43,15.2.1983,p.1),as
amendedbyRegulation(EC,Euratom)No1700/2003of22September2003(OJL243,
27.9.2003,p.1),thisfileisopentothepublic.Wherenecessary,classifieddocumentsinthis
filehavebeendeclassified inconformitywithArticle5oftheaforementioned regulation.
InÜbereinstimmung mitderVerordnung(EWG,Euratom)Nr.354/83desRatesvom1.
Februar1983überdieFreigabederhistorischen ArchivederEuropäischen
Wirtschaftsgemeinschaft undderEuropäischen Atomgemeinschaft (ABI.L43vom15.2.1983,
S.1),geändertdurchdieVerordnung(EG,Euratom)Nr.1700/2003vom22.September2003
(ABI.L243vom27.9.2003,S.1),istdieseDateiderÖffentlichkeitzugänglich.Soweit
erforderlich,wurdendieVerschlusssachen indieserDateiinÜbereinstimmung mitArtikel5
dergenanntenVerordnungfreigegeben.

COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)247 final
Brussels,7thMay1980
MEASURES TOMITIGATE THEEFFECTS
OFSHORT-TERM OILSUPPLY PROBLEMS
(Communication fromtheCommission totheCouncil)
:;c-N
Η%
■V
1iy:;<-V
•v..<•
COM(80)247final

Communication fromtheCommissiontotheCouncil
Measurestomitigatetheeffectsofshort-termoilsupplyproblems
Introduction
1.TheCouncil,initsmeetingof20September1979,invitedtheCommissionto
makeproposalsastohowtheCommunityshouldprepareitselfforapossible
renewedsupplyemergency.
-TheCommissionhaddiscussions withMemberStates,bilateralaswellas
multilateral,whichthispaperreflects.'
2.Thenatureoftheinternational oilsupplysituationissuchthatth»re
couldeasilybedevelopments leadingtotensionsofasortthatnot
beequitablyeliminatedthroughtheoperationsofnormalmarketforcesalone.
Atsuchtimes,certainstepsneedtobetakentoensurethat,throughout
theCommunity,oilsuppliesarehandledon'&similarandequitablebasis.
Thetakingofthesestepsisclearlytheresponsibility ofMemberState
governments,butthenatureandeffectofsuchsteps-shouldbediscussed'
betweenMemberStatesandtheCommissiontoensureadequateco-ordination
(asprovidedforinDirective73/238/EEC)andtoavoidcounterproductive
andconflicting -resultsfromdivergentapproachestothesameproblem.,
Itisalsonecessarytodevelopacommonpragmaticapproachtotheevaluation
oftheseverityandlikelyrepercussions ofsupplyproblems.
•I : •- •":
3.Thepoliciesnecessarywillneedtocoverthreespecificaspects;
-measurestoreduceconsumption;
-thelevelanduseofstocks;
-pricingforbothinternational purchasesandendconsumers.-
Measurestoreduceconsumption ^
1.Ingeneral,measuresmaybedividedintotwocategories :
-structuralandenergysavingmeasures-aimedatreducing
dependence onimportedoilinthemediumtolongterm;
-immediatemeasures-toreduceconsumption inthefaceofa.
supplyshortage,bothbyallocationofsuppliesandby
supportingmeasuresaimedatreducingthelevelofdemand.
Inthelattercategory,mostMemberStatesdrawacleardistinction between
"crisismeasures",necessaryinthecaseofseverereductioninavailability,
andthemeasuresthatwouldbeadoptedunderlessstringent"sub-crisis"
conditions.Thespecificnatureofeachmeasurethereforedependsuponthe
degreeofshortage,itsanticipateddurationandtheproducttowhichit*•_
applies,aswellasonthegeneraleconomicandsocialstructureofthe./

country,itssupplystructureandits"administrative attitude"(co-ordination
ofindustryactions,governmental actions,et<^)«
2.Structuraloilsavingmeasuresprovidethebestlong-term"defence"for
Communitycountries.Since1973developments havetakenplaceprogressively
andalotofearlier"waste"hasbeeneliminated (sothatsupplyinterruptions
willaffectsocialandeconomiclifequicker).Manyofthesedevelopments
havebeeninthepublicsector,especiallyelectricity generation >following
reappraisal oftheuseofcoalandnuclearpower.Theseeffortsshould
continue*Inthisconnectionsdraftresolutionregardingmorestructural
measuresisalreadybeforetheCouncil.Thusfarbothrestructuring and.
elimination ofwastehavetendedtoreduceconsumption of-heavyfueloil,anditisworthrecordingthattherefihingindustryhasbeenfollowing aparallel
lineofstructural change,withincreasing emphasisbeingplacedonconversion
.capacitywhichwillincreaselightproductyieldandreducetheoutputoffueloil
3.Immediatemeasuresarerequiredforanysudden"disruption.Fortheir
implementation thesituationisasfollows:
a)TheLegalSituationinMemberStates '',
AllMemberStateshaveestablished legalbasesfordealingwithsupply
difficulties .Ingeneral,thelegislation doesnotdefinethedegreeof
*.shortageordisruption necessarytobringitintoeffect.However,it
appearsthatcertainMemberStategovernments couldnotusetheirexisting
legislation toimposerigidcontrolmeasuresforshortagesoflessthan7%.
b)FullCrisisMeasures .i
SI•
Forgasoilandfueloil,mandatoryreductionsindeliveries areforeseenand
wouldbeimplemented bygovernments withdueregard ;topriorities .All
MemberStatesarestudyingthequestionof-prioritygatingofthedifferent
categories. ,i-
WhilethereisageneraldislikeofcouponRationing'schemes,most
governments intendtointroducecouponsespeciallyforautomotivefuels,but.
onlyinveryseveresupplydifficulties .Inlessseverecircumstances,most
governments wouldrelyonabanondrivingonSundaysand/oroneormore
weekdays,andintroduction ofspeedlimits.
Inadditiontothesemeasurestoreduceandcontrolsupply,mostMember
:Stateshavepackagesofmeasuresaimedat.reducingthelevelofdemand,of
whichsomeareonlyofasupportingnature,randwhicharedescribedinc).
c)Sub-Crisis Measures ' I
... _
Withoutthepoliticaljustification ofananternatipnal crisisevidencedby
theapplication ofthe"crisismeasures",governments are,ingeneral,not
willingtointroducehardmeasures.Insub-crisisconditions mostemphasis
isplacedonvoluntaryrestraintbyconsumers;allocation bybilcompanies
(also,inmostcountries,onavoluntarybasis);andontheadditional
measures,someofwhichareonlyofasupportingnature.Inadditiontopublicity,thesemeasuresinclude,e.g.:
~stricterlimitationoftemperature,inparticular ,inpublicoffices;
mmaximumfuel-switching inpowerstations ;andindustry;
-stricterenforcement ofspeedlimits; .>
-prohibition ofcarralliesandnon-business useofaeroplanes andboats;
-prohibition ofjerry-canfilling;
■ /■!'' ,./.
1... _.. '.:'
NewlineofactionbytheEuropeanCommunityinthefieldofenergysaving
(Document COM/79/312Final)

-closureofgasolinestations; ,
-electricityblackouts; jii
-reductioninilluminatedadvertisements .,, •
Themajorpointistadevelopthe"scarcityawareness"ofthepublicas
well,bymakingitclearthatif(moreor'less)voluntarymeasuresdo
nothavesufficientimpact,moreseveremeasures(earlessdays,etc.)
willhavetobeimplemented./"
•^ ' .I}
TheLevelandUseofStocks
. ,,
1.Stockscanplayanimportantpartinthemanagementofasupplycrisis
orsub-crisis. •<
-Incasesoftemporarysupplyinterruption,adrawdownofstockscan
bemadetoreduceeffective -shortagesuntilnormalsupplyisresumed.
-Forsupplyinterruptions oflongerorindeterminate duration,stock
drawdowncanbeusedtomaintainsupplyonareducingbasisuntil
measuresbecomeeffectiveincuttingbackdemand.Considerably care
isnecessaryin.thisapproach,sinceintimesofprolongedshortage
rebuildingofstockswillbedifficult.11 "
-Whenashortageisunevenlydistributed betweencompaniesmarketing
,oiIproducts,stockscanbeusedtocorrectthebalanceandavoid
panicbuyingbythosemostshort.Thisuseofstocksshouldhelpto
avoidthecompetitivebidding-upofspotjmarketpricesatsuchtimes.
-Stocksofbothcrudeandproductscanbeusedtoleveloutseasonal
peaksandtroughsofcrudeoildemand,Whichshouldalsohelpto.
reducethebidding-upofcrudeoilpricesattimesoftraditionally
seasonalhighdemand. * •, ,
2.Theextenttowhichthe.aboveuseofstocks.canbebroughtintoplaywill
.dependupontheabsolutelevelofstocksheld. 1:
I ·'.1
Inparticular,thequestionofseasonalvariationofstocksneedstobe
considered.Present90-daystockrequirements basedonayearlyaverage
couldnotsupply90daysofconsumptionat.winterpeakdemandlevels.It
isforthisreasonthat,inFrance,gasoitstockobligations arecalculated
onamonthlybasisrelativetohistoricalconsumption inthemonthin
question. " ;
Itisforconsideration whetherapolicy LfO|rstockmanagementshouldbe
introducedatCommunitylevelbasedonspecificguidelinesagreedin
-co-operation withotherindustrialised countries.:
Pricingforbothinternational purchasesandendconsumers
ιI
1.Pricingposesproblemsthatarecentraltotheproperhandlingofvsupply-
interruptions oruncertainty.In1973andin1979theworldhaswitnessed
theeffectsof-uncontrolled counterproductive competition forlimited
volumes.ItwasagreedattheTokyoSummitthat,attimesofrisingtension
intheinternational oilmarket,governments shouldrecommendbuyersto
abstainfrompayingunreasonable prices.;Theregistryofcrudeoiland
productimportsalreadyestablished wasenvisagedprimarilyasacontrolto
allowidentification ofthosethatchoose !fo'ignoresuchrecommendations .
AQuickResponseSystemorothermechanismtoreinforcethisisstillunder
consideration .
2.Abstinencefromhigh-pricepurchasesmayreducesupplyforashorttime,so
thatfurtheremphasismustbeplacedontheneedforeffectivemeasuresto
./.

reduceconsumption .However,providedallgovernments followthe.same
policy,theendresultshouldbeareturntoinormalsupplylevelsat
acceptableprices.Ifgovernments donotfollowthepamepolicy,product
supplymaybedrawntowardscountrieswherethehighestpricescanbe
obtained. ' N
3.Inparallelwiththeforegoing,acommonapproachtoconsumerpricesis
alsonecessary.Priceharmonisation atnationalandCommunitylevelneeds
toaccommodate twodivergent aims:
-theimpositionofsufficiently highconsumerpricestogenerate
publicawarenessoftheneedtominimiseconsumption without,at
thesametime,providingforproducers ademonstrable justification
forfurthercrudeoilpriceincreases;and
-theestablishment ofapriceregimethatwillcontributetothe.
avoidanceofexcessivepricepressuresifimbalances shouldoccur
inworldoilmarkets,andmoderatespotmarkettransactions .
Thesecondaimisimportant,sincepastexperience hasshownthat
highconsumerpricesalonehaveonlyalimitedeffectonconsumption
levels.Pricepoliciesthatdonotallowcompaniest6recoupthe
..;costsoftheirhighest-price purchasesrepresenteffectivebackingto
therecommendation thatsuchpurchasesshouldnotbemade.
Conclusions
.ψ
1.IntheinterestsofCommunitysolidarity,itisimportant'thatmeasures
takenshouldbecomparable fromMemberStatetoMemberState.Inafull
crisis'situationco-ordination atCommunitylevel(asprovidedforin
Directive 73/238/EEC)isnecessary,especiallyforautomotivefuelsin
thecontextofcross-border commercial andtouristtraffic.
Inasub-crisissituationcomparability isequallyimportant.If,for
example,theCommunity hastofaceaprolongedshortageofsay5%,itis
"questionable whethermarketforcesandvoluntary measureswillbe
adequate;failingsomestrongermeasures,spotmarket :pricesmightbe
driventodamaginglyhighlevels.Specificgovernmentactionmayalso
provenecessaryiftheshortageisveryunevenlydistributed betweenthe
oilcompanies.Ineithercase,co-ordination atCommunitylevelwould--
bedesirable. !
'.1 t■
2.Againstthisbackground,theaimshouldbetoensurethat:-
-themethodusedforassessingthesituation aswellasthe
,conclusions aresimilar .inallMemberStatesandother
industrialised countries;
-thesupporting measures-takingintoaccountthedifferent
supplyanddemandstructuresinthevarious'Member ;States-
areofanequivalent nature; ;l
M '-allocation systems(whetheradoptedonamandatoryor
voluntarybasis)shouldbeco-ordinated at'Communitylevel;
!:-recommendations orOthermeasurestoencouragecompaniesto
abstainfromhigh-price purchasesneed,iftheyaretobe
fullyeffective,tocomeintoforceatthegametimeand
reflectsimilarlimits; ,, j

-5-
-thedecisiontoreducemarkettensionthroughreducing
international demandbyadrawdownofstockshouldbe
takenonlyafterdiscissionatCommunitylevel,sothat,
ifthecircumstances warrant,similarandsimultaneous
actionmaybetakenbyallMemberStates.
3.Discussionisconsiderednecessaryonthefollowingpoints:
-measuresforsub-crisisconditionsthatshouldbe
co-ordinated atCommunitylevel;
-therelationship betweenpricepoliciesandadministrative
measuresandincentivesintimesofcrisis;and
•••. s
-stockmanagementpolicy.
InthelightoftheCouncil'sdiscussiontheCommissionwillcontinue
toexamineandconsultonthesituationandwillsubmitproposalsin
thisfield.