CELEX: 51974PC1961
Language: en
Date: 1974-11-27
Title: A COMMUNITY POLICY IN THE HYDROCARBONS SECTOR AND DRAFT RESOLUTION OF THE COUNCIL (Communication from the Commission to the Council)

ARCHIVES HISTORIQUES
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COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 1961
Vol. 1974/0317
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 ---pagebreak---     COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       COM(74)1961   final
                                                 Brussels . 27 november 197^
                    A COMMUNITY POLICY IN THE HYDROCARBONS SECTOR
                       AND DRAFT RESOLUTION OF THE COUNCIL
                ( Communication from the Commission to the Council )
COM ( 7^) 1961 final
 ---pagebreak---                           CONSENTS
                                                                  Pap-e
       INTRODUCTION                                                  1
   I. Use of resources                                               3
 II . Development, of reliable sources of supply                     3
IIT . Imports and exports of hydrocarbons                            5
 IV. The development of investments :    Refining . Transport
       and Distribution                                             8
   V. A price policy based on market transparency                  10
 VI . Treasures recruirsd in the event of Purmly difficulties .    12
AIPTT.X – Draft Resolution on a Community Policy for Hydrocarbons
 ---pagebreak---                  A COMMUNITY POLICY IPT THE HYDROCARBONS SECTOR
 Introduction
 1 . A number of factors , the responsibility for which is divided to a
     varying extent amongst the parties concerned , have made the world
     situation in the hydrocarbons sector very insecure .    Consequently,
     efforts must be made to make supply more stable and to restore
     worldwide economic and monetary equilibriums    this task is the
     responsibility of all the various parties concerned and entails close
     cooperation between them .    The Community must play a full part in this
     cooperation .
     From a will for dialogue and cooperation between partners wiih common
     or complementary responsibilities ( producer countries , consumer
     countries , industrial operators ), obligations and commitments will arise ,
     leading to the setting up of a new worldwide economic order .
2 . Constituting a market of 250 million inhabitants attracting almost 40$
     of world trade in hydrocarbons , and with the strength deriving from its
     economic power and political influence which must result in greater
     cohesion , a better awareness of identity of interest and the necessity for
     greater solidarity , the Community should have a real influence in this
     direction .
     But this requires a Community policy for the hydrocarbons sector which
     must be built on three main pillars :
        – relations between the Community and exporting countries ;
        – relations between the Community and importing countries ;
        •– a Community supply policy.
3 . Concerning the first two pillars     of a Community policyf the Commission has
     proposed its own guidelines on several occasions in communications to the
             1
     Council .     These guidelines are founded on the necessity for cooperation
–                                                                           ./.
  Don C0M(73)1320 , C0M(7A)90 , C0M(74)110 .
 ---pagebreak--- with importing countries - whether industrialized or developing – and
with producing countries ;   they should be examined by the Council with
the least possible delay.
With this in mind, the Commission is confining this communication to
problems related to a Community supply policy. , It emphasises that the
actions proposed in the supply field are entirely compatible with its
guidelines for external relations and emphasises also that internal
progress is closely linked with the development of the external aspects
of Community policy.
The Community supply policy must generally always depend upon the supply
of sufficient and uniformly–based information , the widest possible
consultation among the authorities , and between the latter and businesses .
The purpose of this consultation must be to maintain and to implement
progressively and unrestrainedly behaviour which recognises ■– within the
rules of the Treaty     both the publio interest and the legitimate
interests of industry.
Thus the Community market , which can in no sense be isolated from the
world Market , must
   •– by the unity derived from the free movement of goods keep its
      attraction for business ;
      permit fair competition by which consumers can benefit from the best
      long term supply conditions and business from the ability to direct
      their activity with the maximum of discretion , compatible with the
      public interest ?
      display a sufficient transparency , so that the public authorities can
      assure themselves of its conformity with the objectives of the energy
      policy.
Where necessary, the.se principles imply the availability of the means of
action , whether national or community .
This general philosophy finds expression in the various components of a
common supply policy in the hydrocarbons sector.
 ---pagebreak---                                      3–
• Use of resources
   The change ■- doubtless a permanent one >– from a plentiful and cheap
   supply of hydrocarbons to a situation where there is pressure as regards
   both quantities and    especially prices roust , in view of its political ,
   economic and financial implications , lead to practical attempts , which
   must , as far as possible , be harmonized at Community level , to eliminate
  waste and make rational us8 of hydrocarbons *       The result should be to
   limit , if not to stabilize , the increase in necessary imports .
  >– Steps to eliminate waate , where some Member States are already setting an
      example , should be based principally upon an extensive informative campaign .
     Ultimately , however , there could be no question of ruling out more
      restrictive administrative measures , taking the form of prohibitions or of
     price actions .    This type of action , which is both necessary for economic
     reasons and because it demonstrates an essential day-to-day solidarity , is
     envisaged in the Commission' s communication on the rational use of energy
      ( Doc C0M(74)1950 final ).  It is important that such measures should be
     taken both at the national and Community levels in order to avoid any
     fresh distortions of the market ;    it is important also to take account of
     the social effects of such measures and to adopt them if necessary .
 ■– Efforts to achieve rational utilization , on the other hand , are by nature
     more economic and technical ;    they Beek to draw the maximum use of the
     available products , improve efficiency and reduce waste .     As regards
     making the best use of products , the Commission has prepared proposals for
     two Directives on limiting the use of natural gas and fuel oil in convent­
     ional power stations .
     As to the improvement of efficiency and reduction of waste , this is a basic
     issue , the importance of which goes beyond, the hydrocarbons sector:     specific
     examples are also given in the Commission* s communication on the rational use
     of energy.     In order to be truly effective and to prevent duplication ,
     these schemes should be pursued either by the actions of public
     authorities or by relying on the intelligent self–interest of those
     concerned.
  Development of reliable sources of supply
 It is important to maximise , although on the basis of sound economic criteria,
 the contribution made by hydrocarbons situated within the Community to the
 energy supply.       This general line of conduct oaters for the need to enhance
 ---pagebreak---   Community solidarity generally , in which energy , despite its importance ,
  is only one element .    The policy must , in any event , be directed both to
  the further development of traditional resouroes and to the development
  from scratch oi" new , more sophisticated techniques .
– The substantial rise in hydrocarbons prices should make certain
     discoveries economically interesting ( e.g. , by increasing the size of
     recoverable reserves ), and make prospecting in zones which hitherto have
    been partly or totally disregarded a more attractive proposition .        Any
     increase in recoverable reserves requires the companies exploiting thera
     to conduct a reappraisal , the conclusions of whioh should be passed on in
     a manner yet to be determined, to the public authorities , thus making
    possible the joint consultations which the Commission , for its part ,
     intends to develop .
    The increase in exploration effort requires the Member States to adopt
     a liberal policy as regards the granting of exploration licences and
     operating concessions , based on a wide-ranging and frank consultation
    between the interested parties , observing the Treaty rules on non-
     discrimination and freedom of establishment .     If in future it should be
    necessary , the Commission reserves the right to submit to the Council a
    proposal for Community arrangements on this subject .
    As to the possibility of granting specific financial aid to certain
    projects of this type which are especially worthyof interest because of
    their potential contribution to the Community' s supplies and/or because
     of the characteristics of the interested parties , the Commission thinks
    this should be met by the extension , as it is proposing to the Council ,
    of the scope of activities ( see Document C0M(74')1962 final )    and the
    amount of funding stipulated in the Regulation on Community Projects .
    This latter should be extended to 50 .million units of account a year from
     1976 onwards ( see Document COM(74 )     final ).
•– Research into and the development of new techniques is of particular
    importance in the hydrocarbons sector given the growth in off-shore
 •' exploration and production , in particular on the deep sea bed.       The
 ---pagebreak---                                          '-5-
            Council demonstrated, its understanding of this by adopting the
            Regulation on Community Projects , and the interest which this Regulation
            aroused in industry was reflected in the twenty-three applications
            received.    Examined by the Commission , these applications have been
           passed on to the Council , and they have been thoroughly discussed within
           the Council' s Working Party on Energy ;   the Commission' hopes that the
           Council will reach a decision on this matter during thd session on
           energy problems .
III . Imports and exports of hydrocarb ons
        The action required is based on the provision of information , on sufficient
        joint consultation , on the instruments of a commercial policy and on the
      . enhanced promotion of Community– orientated operations .
        ( a) The provision of information and joint consultation arising in connection
              with these matters is already extensive but must nevertheless be further
              extended .
              The Community is already provided with information on a regular basis by
              virtue of EEC Regulation 1055/72 adopted by the Council .     This
              Regulation has proved both effective and useful .    There might , however ,
             be a case for amending it to cater for the new supply conditions .      The
             provision of information on a regular basis should, in addition , be
              extended to imports of refined petroleum products and to exports of
             hydrocarbons ; the former will probably prove to be of great importance ,
             the latter not inconsiderable .    This is the purpose of two proposals
              sent to the Council by the Commission in July 1973        subsequently
             amended to take account of the views expressed by the Member States'
             experts .
             Joint consultation is alreaely practised for this type of information :
             it is conducted with the Member States by means of periodic reports first
             discusned within the Energy Committee and then sent to the Council .
          /
             Joint consultation with industry should be instituted without delay, by
             means of meetings similar to those on prices recently held on a trial
             basis .
             Such joint consultation with industry will , moreover , be a means of
             escaping from the inevitably rigid format of regularly supplied information
             and will also , for example , be a way to have an exchange of views wit
 ---pagebreak---                                   1–6-
       industry on forecasts of imports for five years ahead, or on draft
       agreements giving practical expression to a Community supply strategy.
 (b ) Commercial policy must , according to the unequivocal provisions of the
      Treaty, be based upon uniform Community principles .      This matter raises
      both quantitative questions and tariffs on custom' s issues .
      The quantitative aspect is dealt with in the same way for all hydrocarbons
       ( crude oil, refined petroleum products and natural gas ) in the proposal
                                                                                 1
      from the Commission to the Council , in Annex III to the "New Strategy " .
      For both imports and exports , monitoring is proposed by means of the
      automatic granting of an import or export licence .      Provision is made
      for safeguard measures in the event of the Community's secxirity of supply
      being threatened.      In the opinion of the Commission , this system has the
      merits of simplicity , liberality and compatibility with the requirements
      of a genuine supply policy.
      The monitoring system for hydrocarbons will make it possible , in the
      light of the quantitative objectives for the Community adopted by the
      Council , to ensure that imports and exports as a whole are in line with
      the industry's annual forecasts and with the said objectives and will also
      provide an opportunity, in the event of discrepancies , to enquire about
      the reasons .. It will thus be possible , by means of the permanent
      statistical instrument provided by the monitoring system , to vary the
      objectives of the Community' s energy policy if necessary.
      The tariff or customs problem arises only in connection with imports
      and differs according to whether natural gas and crude oil or petroleum
      products are concerned.
      Crude oil and natural gas are imported free of duty and this system which
      is consolidated under the GATT could not possibly be altered.
      Imported petroleum products , on the other hand, are subject to a customs
      duty averaging approximately 3*5%•      The present system displays very
      great diversity, varying from the generalized preference system to
      importation at normal rate of duty, with , ., in between , complex and
                                                                       •Λ
Doc COM(74)550 final
 ---pagebreak---                               '-7-
      diverse system3 ( preferential agreements at zero or reduced, rate of duty .
                                         1
      in the form of quotas or ceilings ) .
      In view of the importance that producer countries may attach to refining
      their own petroleum products and the probable effects of such a likely
      development on the Community's refining industry , it is important to give
      careful consideration to this problem and to work out simple solutions
     which do their best to meet the concerns of all parties involved.
     Here it would be appropriate to retain the principle of the present customs
      duty ; despite the low rate , its effects are far from being negligible ,
     owing to the rise in oil prices .     It provides the Community with a
     bargaining counter for negotiations with the producer countries to which ,
     in turn , it is an incentive to open negotiations and in any event it gives
     a significant degree of protection for the Community's refinery capacity
     ( there is a threat of a surplus developing if present trends continue ).
     Whether within the framework of generalised preferences or within that of
     preferential agreements , the aim could be to institute a unique regime for
     agreements with producing countries , which could be the form of a ceiling
    whose level could be calculated after joint consulatation with the Member
     States (which supposes a deeper consideration of the development of
     refinery capacity in the Community).      This could permit a certain
    necessary margin for manoeuvre in re–establishing the tariffs , and should,
    therefore , receive a favourable reception from the producing countries .      As
    to the distribution of this ceiling amongst Member States , this will
    require from those responsible for energy policy in the Community ( public
    authorities and the oil industry) a veiy valuable , periodic joint
    consultation , providing an extremely sound base for the necessary dialogue
    with the interested producing countries .      These arrangements would enable
    the imports introduced within the framework of industrial agreements
    between Community activities and the producing countries to be taken
    account of .
The tariff quota is allocated between Member States and when the quota is
exceeded, the duty is automatically restored.       Where ceilings are imposed,
however, there is no allocation between Member States end once the ceiling
is exceeded, the duty is restored only at the request of a Member State or
the Commission .
 ---pagebreak---                                    i–8–
  ( c ) More emphasis on Community-orientated operations , where imported
         petroleum products are concerned , would be. the result of the system
         described above .  Consideration should also be given to this problem
         as regards natural gas and crude oil       In this field , however , the
         action required falls essentially within the competance of the industrial
        concerns themselves .
        With regard to natural gas , the Community is fortunate that many of the
        import operations either carried out or contemplated are the concern of
        widely–based industrial consortia.      It is a matter for regret , however ,
        that this is not always the case .
        As regards crude oil , it is difficult to conceive of such consortium-based
        import operations , although they may beoome attractive in the event of the
        producer companies taking further steps towards the direct marketing of
        their own crude .
 The development of investments ;       Refining , Transport and Distribution
 An, energy strategy can be adopted by the public authorities ! it can be
 implemented only if decisions concerning the necessary investments are taken
 in good time , which implies that investors must be fairly well informed about
 the measures to be implemented and nruet have sufficient funds .
•– A harmonious expansion of investments is not possible unless sufficient
    in fc mation is provided and unless extensive joint action programmes are
    initiated .
    At Community level , prospective investors could be provided with information
    more easily if common objectives in the form of figures similar to those
    proposed by the Commission in its communication to the Council of 5 June 1974
    entitled '"Towards a new energy policy strategy for the Community" were
    drawn t\p by the Ccrrmunity.      In its Resolution of 1 7 September 1974 , the
    Council stated, furthermore , that "quantitative objectives are
    important guidelines for producers .             . of energy in the Community"
    ( paragraph 3 of the Resolution ).
                                 \
                                                                        ./•
 ---pagebreak---  The supply of information on investments is ensured by the EEC Council
 Regulation No 1056/72 , "by which the Commission is informed, each year for
 three years ahead of the installed capacities or capacities under
 construction or scheduled to be decommissioned in the hydrocarbons
 sector.   This information covers oil and gas pipelines , storage
 facilities and refinery capacity .
 The information to be provided under that Regulation would not be of any
 real value if it were not accompanied by joint action and discussions
 on the problems raised and the solutions to be implemented.      The objective
 is to ensure that the growth of investments is compatible and consistent
with the objectives and guidelines set out in a Community energy policy .
 It is obvioiis that in this respect , the problem of refinery capacity is
 of particular importance .
At   public authority level such joint action normally takes place within
the Energy Committee :   it is a permanent feature there but , where
investment is concerned, it may be scheduled to take place regularly , i.e.
when the annual report on the implementation of Regulation No 1056/72 is
presented to the Council by the Commission .
Joint consultations between the public authorities and the industrial
operators should be started quickly in the way described in the New
Strategy.     It should concern longer-term ( e.g. five years ) investment
programmes by industry and should gradually be extended to cover all the
fields in which it could prove useful or necessary , given a general
acceptance of the problems to be studied.
Finally, once the necessary discussions have been held with the producing
countries on important questions , such as the expansion and location of
refining capacities , such joint action should result in the best , though
flexible , use of the investments , and should thus meet the problems both
of the public authorities and of the industrial operators .
 ---pagebreak---                                  -10-
i– No matter how muoh investment is required, most of the necessary funds
    should come from the market itself*    However , this fundamental guideline
    presupposes an adequate price level and the absence of unjustified
    distortions 'of competition between industrial operators .
   Nevertheless , the public authorities may provide incentives , particularly
   when Community operators are endeavouring to coordinate their efforts to
    increase the security of supplies .   This is also the objective of the
   Council Regulation on Community Projects , and is why the Commission is
   proposing to extend the scope of that Regulation ( see Document C0M(74)196
   final ) .
A price policy based on market transparency
This is a fundamental issue to all those concerned with the proper
functioning of the market .
It is also a problem , and a particularly complex one , since the objectives ■
pursued must be matched to the concerns of all those involved.
In an attempt to see the problem clearly , therefore , these concerns and
objectives must first be analysed , and this must be followed by an outline
of a Community policy of this kind in specific terms , or at least of how
such a policy might look .
( a) The objectives of a price nolicy
      The adoption of common criteria or the acceptance of harmonized
      behaviour regarding prices on the Community market is a necessity for
      consumers , the companies supplying the market and for the public
      authorities .
     <– Consumers must be protected against unwarranted price increases .
        Price transparency based on a clear estimation of costs is a basic
        factor here :  an estimation made at the stage of prices net of taxes .
        Taxes and duties on petroleum produots should eventually be harmonized
        at Community level so that the true effect of the cost of energy is
 ---pagebreak---                                    ~1 1'-
          comparable in the various Member States .      The actual level of these
          taxes and. duties is itself the result of budgetary requirements or of
          political–economic decisions ( taxation being regarded as an
          instrument of economic end/or energy policy ) all aspects of which
          should be clearly defined and explained to the public .
      •– The level of consumer prices , excluding tax , must be such as to
          enable the industry to operate with an adequate amount of self-
          financing so that it can successfully conduct its present and future
          operations on the hydrocarbons market , or even on the energy market
          in general .    This implies that the industry will make known and will
          explain objectively a reasonable level of self-financing , as well as
         its overall finance needs end the investments to which they relate .
         Moreover , the policy adopted regarding prices must be such as to
         provide a satisfactory degree of competition between firms or
         categories of firms supplying the market .       In this connection , there
         are grounds for fearing that present trends in supply conditions may
         result in excessive distortions of competition between types of
         company.      This is a delicate , and. possibly a temporary , problem ;
         its solution is in any event not a matter for a traditional price
         policy.
      >– Finally , observance of the rules of the Treaty of Rome , together with
         the desire to ensure that the market operates properly , requires that
         the price levels ruling in the various Community countries be
         sufficiently harmonized as to permit the free movement of goods ,
         without irrational movements .      This is the responsibility of the
         public authorities .    At Member State level , both prices themselves
         and the pricing system must , at one and the same time , provide a
         sufficient assurance of supplies for the importing countries without
         producing any risk of causing a shortage of products in the exporting
         countries .
         Generally speaking , the level of prices is determined principally by
         costs alone and by actual supply conditions .
( b ) A Community prices policy
      In its New Strategy ( pages 31 , 33 and 34 ) the Commission set out the guide­
      lines which it thinks necessary to guarantee transparency of prices .        The
      Commission considers that those guidelines are still applicable but cannot
 ---pagebreak---                                    I-12-
         make any concrete proposals before the Energy Committee has given
         further details on how it would like this system of transparency to
         work .
         Nevertheless , the Commission notes that discussions have been begun
         or are taking place , either within or in cooperation with the Energy
         Committee , with national experts and representatives of companies ,
         thus enabling the Community to make a better analysis of and become
         more closely acquainted with the conditions governing the formation
         of costs and prices of petroleum products and the components of those
         costs and prices .
VT » Measures required in the event of supply difficulties
     The manner in which the Community , as such , reacted to the supply
     difficulties which arose from October 1973 onwards should be a lesson for
     the future .    In the opinion of the Commission , the oil crisis showed the
     need for adequate emergency stocks and for a special framework in which
     the benefit of genuine Community solidarity could prevail over the
     temptation to adopt different '– or even widely diverging <– national
     attitudes .
     The availability of permanent emergency stocks of a minimum level is the
     simplest and most effective way of coping with any supply difficulties .
     In this field , the Member States of the Community undertook , by the
     Council Directives of 20 December 1968 and 19 December 1972 , to hold 65
     days * stocks of petroleum products , and to increase this to 90 days' from
     1 January 1 975 •
     This objective must be attained and any difficulties in the way must be
     overcome .   Prom the legal angle , this assumes that all Member States must
     enact the necessary regulations as soon as possible .      From the financial
     and economic angles , the difficulties experienced by certain Member States
     would be greatly eased if mutual assistance agreements between them were to
     become general , as is provided for in the Directive of 20 December 1968 .
     Furthermore , the Commission , while continuing its investigations into the
     best way of financing these' stocks , will , in due course , submit to the
     Council proposals to standardize , on a Community-wide basis , the
     arrangements governing the way of calculating and managing emergency stocks
     and for cutting out any discrimination which may arise from the existing
     Directives .
 ---pagebreak---                                 -1 "V-
 The importance of emergency stocks as a means of reducing the effects of
 a supply crisis also provides the justification for the proposal from the
 Commission ( Doc 00^(73)2245 final ) on the holding of stocks at a certain
 minimum level at fossil-fired power stations .
 Lastly , the Commission considers that the share likely to be accounted for
 by natural gas in 19^5 ( 25$ of the energy balance , 40 of which imported)
 should prompt the Community to examine the advisability of holding stocks
 of natural gas , in accordance with specific detailed rules .
 A sudden drop in imports of hydrocarbons , which typifies a difficult
 supply situation , generally affects all importing countries .   To cope with
 such a situation , far-reaching international cooperation is necessary.
The problem of allocating available oil supplies in the event of supply
difficulties should therefore be examined in parallel with that of the
Community's external relations .
Complementary action is needed at Community level , however.     The Directive
adopted by the Council in 1973 on measures designed to mitigate the effects
of supply difficulties is a first step in this direction ; its usefulness
was shown at the time of the last crisis when it led to regular joint
consultations between the representatives of the Member States .
These provisions should be added to , however, by building on the lessons
learnt at the time of the last crisis , when Community solidarity and
observance of the provisions of the Treaty ( in particular those relating to
free movement of goods ) were sorely tried.
To that end, a number of policy measures of a permanent natiire mentioned
in this document will be useful ; monitoring of imports and exports , and
moves towards price harmonization are examples . These moves should be
supplemented by the adoption of two areas of policy–making yet to be
implemented.     The first of these would be designed to reduce energy
consumption in the Community:    this would be achieved by harmonized measures
 ---pagebreak---                                  -14-
.. tailored "to the inherent energy pattern of each Member State and arranged
    so as not to interfere with the free movement of goods .   The second would
   "be an information system about and, if necessary , control of intra-
    Community trade in crude oil and petroleum products ( see document
   C0M(74)196 final ).
 ---pagebreak---                                                                  ANNEX
              DRAFT RESOLUTION ON A COMMUNITY POLICY FOR HYDROCARBONS
The Council of the European Communities ,
having taken note of the Commission's communication ( Doc COM(7*0 1961 final )
entitled "A Community policy for oil and gas ":
1 . Recognises that this communication forms part of the process of
     formulating a Community energy policy whose purpose is to guarantee a
   _ certain and lasting supply under economically satisfactory conditions ,
     which new information on the conditions prevailing in the world energy
     market makes more urgent and necessary.
2 . Observes that oil and gas will keep a preponderant share of the
     Community's energy supply for a long time to come .
3 . Emphasises the need to reduce the dependence of the Community on
     external sources of oil and gas supplies .
4 . Insists therefore on the necessity for a Community policy for oil and
     gas to be defined and implemented.
5 . Confirms that a Community policy for oil and gas must be built on
     cooperation between consuming countries and with producing countries ,
     cooperation in which the Community as such and the Member States
     intend to participate .
6. Declares that this policy must , at the Community level , find expression
     in a supply policy based on Community and national means of action , and
     for which precise and consistent information and a flexible system of
     consultation with industrial interests , on a continuing basis , are
     indispensable .
                                                                     •/.
 ---pagebreak---  Recognises that this Community supply policy implies :
 ( a) an effort to obtain the rational use of the oil and gas
        resources consumed on the Community market ;
 (b ) the optimal development , based on economic criteria , of the
        Community's oil and gas resources , which requires concerted action
       by the public authorities and the operators in the industry and ,
       should the need arise , support for the development of new
       techniques ( for example , to exploit the seabed in deep water ) and
       for intensifying the exploration effort ;
 ( c ) the search for a diversified and sure external supply by a greater
       effort of information and consultation , by adopting Community
       measures for commercial policy and joint initiatives for the
       industrial or commercial activities undertaken by firms supplying
       the market ;
( d) information and consultation on existing or proposed investment in
       the Community , especially in the refining sector ;
( e ) a price policy for consumers based on competition and on transparency
       of costs and prices to guarantee that the levels of prices , based on
       the actual development of supply conditions , shall be coherent
       between Member States ;
( f ) the availability of Community mechanisms which , should there be supply
       difficulties , ensure that the unity of the common market would be
       maintained .
Invites the national governments , producers , importers and consumers of
oil and gas in the Community to follow the guidelines established above ,
each according to his responsibilities and capabilities .