WRITTEN QUESTION P-2972/00 by Rolf Linkohr (PSE) to the Commission. The high price of oil.
Date: 2000-09-13
Institutions: European Parliament, Provisional data
Subjects: balance of payments, gas, petroleum, price increase, price of energy

C 113 E/222

Official Journal of the European Communities

EN

18.4.2001

these
The Commission Member responsible for the Environment has expressed her concern about
proposed dams and raised this issue with the Polish Minister of Environment. The Commission(cid:146)s view is
that, on the basis of the Community common position on Poland, all new investments in the candidate
countries should be in line with the Community(cid:146)s environmental acquis. This implies that protected sites
should be respected and environmental impact assessments (EIAs) carried out for the projects that fall
under the scope of the Community directives on EIAs.

Following the decision of the Polish Government to launch the construction of the dams, the Member
responsible for the Environment wrote to the Polish Minister requesting information on technical details of
these dams and their environmental impact assessment. On the basis of this information, the Commission
will closely monitor the further progress of this issue.

The Community(cid:146)s pre-accession instruments will not provide any assistance to the building of dams as this
does not constitute eligible expenditure. The Commission has not received from Poland any application for
support from ISPA (Instrument for structural policies for pre-accession) for projects of this kind.

(2001/C 113 E/240)

WRITTEN QUESTION P-2972/00

by Rolf Linkohr (PSE) to the Commission

(13 September 2000)

Subject: The high price of oil

Can the Commission say how this year(cid:146)s rise in the price of oil is impacting on the EU(cid:146)s balance of

1.
payments on current account?

2. Will gas prices go the way of the price of oil, and does the Commission regard that development as
justified?

Answer given by Mr Solbes Mira on behalf of the Commission

(17 October 2000)

Oil prices have, so far for 2000 (up to 12 October 2000), reached an average price of USD 28,1 per barrel
(bl) (for Brent light crude oil). Present prices (12 October 2000) are at around USD 32. This compares to
average prices for 1998 of USD 13,4 per barrel, and for 1999 of USD 18 per barrel.

1.
The last, semi-annual, Commission forecast was finalized on the basis of data up to 21 March 2000.
It predicted for the Community for 2000 a current account surplus of € 5 100 million. That forecast was
made assuming an average oil price of USD 24,2 per barrel for the year 2000. The assumptions underlying
this forecast are not in line with the actual development in recent months, and therefore the forecast will
have to be adjusted.

Higher oil prices affect mainly and directly the balance of trade. Secondary effects on other components of
the balance of current account (in particular on services or income) are relatively small and delayed. For
the first half of 2000, the energy trade deficit (customs basis) amounted to € 52 000 million, as compared
to € 61 000 million for the whole year of 1999. The energy trade deficit and the oil price (in euro) have
shown a relatively closely correlated development over the recent years (see chart no 1 sent direct to the
Honourable Member and to Parliament(cid:146)s Secretariat).

Assuming that Brent oil prices in € will remain for the rest of 2000 at the levels of 12 October
(USD 32,26 per barrel or € 37,3 per barrel) would point to an estimated deficit in the energy trade balance
for the Community for 2000 of around € 114 000 million, or 1,4 % of gross domestic product (GDP).
Hence, the deficit would be higher by € 52 000 million, or 0,6 % of GDP, than in 1999. Applying this
swing arithmetically to the Community current account balance would point to a deficit in that balance of
around € 57 000 million in 2000. Preliminary figures for the Community current account deficit for the
first half of 2000, which is of course influenced also by other factors than the oil price, show a deficit of
€ 38 000 million.

18.4.2001

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Official Journal of the European Communities

C 113 E/223

Natural gas prices worldwide have also started to rise. The (market) value of gas in the Community is
2.
based on the costs which consumers would incur if they were to use a different fuel
(principle of
substitutability). This relation is reflected in most of the supply contracts concluded between the European
gas industry and producers. Gas is therefore in most cases priced on the basis of oil products, the price of
which on the world market is expressed in dollars. This means that the value of the dollar is also a factor
in the price ultimately paid by the consumer for each cubic metre. As a consequence, rising oil prices push
up prices of gas prices as well. The gas pricing calculation formula applied by the European gas industry
takes into account the average oil price over the preceding two quarters, which explains the delay of
around half a year before gas prices are adjusted (see chart no 2 sent direct to the Honourable Member and
to Parliament(cid:146)s Secretariat), but also makes the increase less pronounced than that of oil prices. It should
be noted, however, that in the context of gas market liberalisation, gas prices may (cid:129) due to increased
supply competition in the market place (cid:129) become less influenced by oil prices.

Rising world market prices for gas have started to translate into higher end user prices for gas in the
Community. In July and August 2000, consumer prices for gas were nearly 11 % higher than a year earlier,
after a steady rise starting in mid 1999 (see chart No 3 sent direct to the Honourable Member and to
Parliament(cid:146)s Secretariat). Yet, this inflation rate for gas is considerably lower than for petroleum.

(2001/C 113 E/241)

WRITTEN QUESTION P-2974/00

by Carmen Fraga EstØvez (PPE-DE) to the Commission

(13 September 2000)

Subject: The Commission(cid:146)s criteria for allocating fishing opportunities in the waters of the Svalbard

archipelago

In its reply of 20 July 2000 to my question E-2196/00 (1), the Commission stated that with regard to
allocating opportunities for the Community fleet to fish for shrimps in Svalbard waters, at a meeting held
on 30 June the Member States involved agreed to a fishing plan for this year. This development, which I
already knew about, can only be welcomed, but in view of the Commission(cid:146)s initial proposal to the
Member States (cid:129) even though it did not reach the stage of a formal proposal to the Council, (cid:129) which was
subsequently amended by the Member States, doubts remain as to the Commission(cid:146)s criteria when
allocating these fishing opportunities. This being so, and given that the aforesaid agreement applies only
to this year:

What are the Commission(cid:146)s criteria for proposing reference periods, and particularly, in the case under
consideration?

Does the Commission continue to hold the view, upheld in various international fora, that a single year(cid:146)s
fishing activity cannot be used as a historical maximum?

Can the Commission tell me what its intentions are with regard to its proposal for the year 2001, the
reference period it intends to use for this proposal, and the arguments on which it will be based?

(1) OJ C 89 E, 20.3.2001.

Answer given by Mr Fischler on behalf of the Commission

(6 October 2000)

It is the responsibility of the Commission to propose reference periods on an ad hoc basis in conformity
with the detailed circumstances applicable to fisheries of various characteristics. This applies equally to
fisheries by Community vessels for shrimps in the Svalbard area.