Commission Recommendation of  7 December 2005  on the release of security oil stocks following the supply disruption caused by Hurricane Katrina  (notified under document number C(2005) 4655)
Date: 2005-12-07
Institutions: European Commission
Subjects: United States, energy storage, energy supply, natural disaster, petroleum, petroleum product, security of supply

13.12.2005

EN

Official Journal of the European Union

L 326/37

COMMISSION

COMMISSION RECOMMENDATION

of 7 December 2005

on the release of security oil stocks following the supply disruption caused by Hurricane Katrina

(notified under document number C(2005) 4655)

(2005/885/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

below the compulsory minimum levels laid down by
Directive 68/414/EEC.

Having regard to the Treaty
establishing the European
Community, and in particular Article 211, second indent,
thereof,

Whereas:

(1)

(2)

(3)

(4)

Council Directive 68/414/EEC (1) imposes an obligation
on Member States to maintain minimum stocks of crude
oil and/or petroleum products.

The losses in production of crude oil and petroleum
products caused by Hurricane Katrina disrupted the
world’s
the
therefore
Community’s oil supplies.

affecting

supply,

also

oil

In the wake of Hurricane Katrina the International Energy
Agency (IEA) asked a number of Member States to parti-
cipate in an international
initial collective action in
caused by the
response to the supply disruptions
hurricane, to cover the loss of oil production during
the period from 2 September 2005 to 2 October
2005, but which may also entail
action beyond
2 October 2005 in some Member States.

Member States which are not member countries of the
for the emergency
IEA have expressed their support
action taken by the Member States participating in the
stock releases.

(5)

Participation in the initial collective action could result in
some Member States reducing their security oil stocks

(6)

(7)

(8)

(9)

second paragraph of Article 7 of Directive
The
68/414/EEC requires Member States to refrain from
drawing on their stocks to any extent which would
reduce those stocks to below the compulsory minimum
level, prior to the consultation provided for in the first
paragraph of Article 7 of that Directive.

The amounts of security oil stocks to be released by
individual Member States are not expected to bring the
overall
level of security oil stocks in the Community
below the compulsory minimum levels.

The overall level of security stocks of gasoline (Category
I)
in the Community is well above the compulsory
minimum level and far greater, in terms of number of
days of daily internal consumption of the Community,
than the level of stocks of gas oils (Category II).

Once the release of stocks has finished, Member States
will need to replenish their security oil stocks up to the
compulsory minimum levels. In order to avoid placing
unnecessary pressure on the oil market, such replen-
is expected to take place over an extended
ishment
period of time, including the year 2006.

(10) Article 1 of Council Directive 73/238/EEC of 24 July
1973 on measures to mitigate the effects of difficulties
in the supply of crude oil and petroleum products (2)
indicates that the powers provided to competent autho-
rities of Member States in the event of difficulties arising
in the supply of crude oil or petroleum products should
enable them to impose, amongst other measures, specific
or broad restrictions on consumption.

(1) OJ L 308, 23.12.1968, p. 14. Directive as last amended by Directive

98/93/EC (OJ L 358, 31.12.1998, p. 10).

(2) OJ L 228, 16.8.1973, p. 1.

L 326/38

EN

Official Journal of the European Union

13.12.2005

(11) Article 3 of Directive 73/238/EEC states that consul-
tations between the Member States and the Commission
are due to take place through a group (i.e. the Oil Supply
Group) to ensure the coordination of measures taken or
that
proposed by Member States under Article 1 of
Directive.

(12)

The measures
referred to in this Recommendation
correspond to the results of the consultations carried
out pursuant
to the first paragraph of Article 7 of
Directive 68/414/EEC and Article 3 of Directive
73/238/EEC,

HEREBY RECOMMENDS:

1. In their plans for releasing security oil stocks following the
supply disruption caused by Hurricane Katrina, Member
States should give preference to the release of gasoline
stocks, which belong to Category I, rather than gas oil
stocks belonging to Category II.

2. Member States should proceed with their plans for releasing
security oil stocks in order to participate in the international
collective action following the supply disruption caused by
Hurricane Katrina, to cover the loss of oil production during
the period from 2 September to 2 October 2005, even if
such stock release temporarily brings their security oil stocks
below the compulsory minimum levels.

3. Member States should replenish their security oil stocks in
coordination with the Commission which will facilitate, on a
country-by-country basis, the adoption by Member States of
the market
flexible
schemes
replen-
their
conditions. Member States
ishment plans once they have released all the security oil
stocks they intend to release.

account of
should submit

taking due

4. At meetings of

for

further oil

explore possible measures

including demand restraint measures,
supply disruptions.

the Oil Supply Group, starting with the
meeting before the end of year 2005, Member States
restricting oil
should
in the
consumption,
In particular,
event of
sets of
Member States
‘soft’ and highly
demand restraint measures, one set of
cost-effective measures for minor oil supply disruptions
for major ones. Member States should
and another set
such
coordinate
commit
measures through the Oil Supply Group.

implementation of

should consider

two separate

the

to

5. This Recommendation is addressed to the Member States.

Done at Brussels, 7 December 2005.

For the Commission

Andris PIEBALGS
Member of the Commission