WRITTEN QUESTION E-2733/02

by Nelly Maes (Verts/ALE) to the Commission

(30 September 2002)

Subject: Financial assistance for the European refining industry

The answer given in 2000 to question E-2126/99(1) stated that since 1975 some EUR 750 million of financial assistance has been granted to the hydrocarbons sector.

In the last two decades the Commission's energy policy has been increasingly concentrated on three aspects: adequate energy supplies, environmental friendliness, and consolidating a competitive position.

1. Does the EU still provide financial assistance to the oil sector?

2. If so, could the Commission give a full account of financial assistance granted to the European oil sector since 1973, broken down by Member State?

3. What are the Commission's reasons for providing such financial assistance to the European oil sector?

4. Following the Johannesburg summit, does the Commission still believe that financial assistance to the oil sector is compatible with measures to prevent CO2 emissions?

(1) OJ C 170 E, 20.6.2000, p. 145.

Answer given by Mrs de Palacio on behalf of the Commission

(12 November 2002)

1. The Commission provides a limited support to short-term research and technological development (RTD) activities in the Oil Sector under the 5th Framework Programme 1998-2002. Under the 6th Framework Programme it will not provide any support to short-term RTD activities in the Oil Sector. As indicated in the Commission's Green Paper on Security of Supply(1), in future, all new available technologies (clean cars, fuel cells, insulation, solar energy, etc.) sould benefit from Community support: this support sould be geared more to the needs of potential users than to the support of technologies which have existed for some time.

2. Since 1998, support for short-term demonstration of innovative oil and gas technology has been gradually decreased and redirected towards renewable energies and projects for energy savings. However, the Commission promotes a balanced approach to the promotion of innovative energy technology and therefore a limited amount of support has also been granted to technology for conventional energy sources, such as oil and gas. It should be added that, when granting support to oil and gas technology, preference was always given to projects reducing the environmental impact of the use of fossil fuels. The Commission does not publish a breakdown per country of the research funds.

3. The Community has supported projects which were technologically innovative and were able to demonstrate new technologies that contributed to a more efficient exploration and production of oil and gas, especially in the North Sea increasing therefore security of supply in Europe, while respecting the environment. From this Community-support between 1975-1998, the main beneficiaries were not the oil producers but mainly small and medium-sized enterprises of the Service and Supply sector of the Oil Industry who without the Community support could have not developed those innovative technologies. Successful environmentally friendly technologies have emerged from this Community support on Platform Decommissioning and Water Purification.

It should be noted that this support is not a subsidy but a financial contribution for the demonstration of innovative and efficient energy technology. As a matter of fact, no subsidies were given to oil and gas companies, as this is contrary to Community competition legislation.

4. There is no financial support foreseen for the short-term RTD activities in oil sector in the future. However, an example of the possible contribution of hydrocarbon technologies to the reduction of greenhouse gas emissions is a technique called underground storage of CO2. By means of this technique, greenhouse gases can be safely and permanently disposed of in underground reservoirs.

(1) COM(2000) 769 final.