Energy: Habeck: EU and USA are examining the use of national oil reserves

According to Federal Minister of Economics Robert Habeck, the EU and the USA are examining the use of national oil reserves as a reaction to the Ukraine war and rising prices.

The Green politician said on Monday evening in Berlin before his departure to the USA after a meeting of EU energy ministers in Brussels: “We are considering using the national oil reserves in a concerted action together with the Americans in such a way that prices are dampened if they keep going up.” The International Energy Agency meets on Tuesday. Negotiations will continue there.

“We have a robust system for strategic oil reserves. Member states have oil reserves for at least 90 days,” said EU Energy Commissioner Kadri Simson in Brussels. This reserve can be released in whole or in part in the event of clear supply disruptions. This has only happened three times so far: during the Gulf War, during Hurricane Katrina and during the Libyan war.
With reference to the Ukraine war and because large oil pipelines flow through Ukraine, one must be ready for such a release at any time.

Energy stocks secured in the EU

The Energy Commissioner reiterated that the EU’s energy reserves would initially be secured even if Russian gas supplies were stopped. “It is our current assessment that the EU can safely get through this winter,” said Simson. Gas is currently still flowing from east to west, at the same time imports of liquefied natural gas (LNG) have increased and the weather forecast is good. EU countries consume less gas from their storage facilities, which are still around 30 percent.

In order to support Ukraine, the Ukrainian power grid is also to be connected to the European one. At the meeting of EU energy ministers, there was broad approval for the project, said Simson. The network operator association ENTSO-E is now carrying out the necessary tests to eliminate security concerns for the European network. According to Simson, if the technical requirements are met, the networks could be connected within days or weeks.

Habeck welcomed the project: “Of course we support Ukraine getting a common power grid faster with Europe.” However, it must be ensured that the Ukrainian network is secure according to European standards and robust against cyber attacks.

Test disconnected

Last week, Ukraine, together with neighboring Moldova, disconnected from the Russian and Belarusian power grids for a test. This test had been planned for a long time with a view to a later connection to Europe – but then Russia invaded. The separation should therefore now be permanent, as announced by the Ukrainian Ministry of Energy at the weekend. Ukraine asked for an emergency connection to the European network, Simson said. Moldova should also be connected to the European network.

Habeck went on to say that the energy ministers had asked the EU Commission or supported it to set up a European “gas safety precaution”. Most EU member states have also confirmed that phasing out fossil fuels is part of the European security architecture. Many Eastern European countries had also said that one had to become independent of coal and also of gas.

Habeck had already announced a national gas and coal reserve. There is already a national oil reserve. For the coming winter, one must be better prepared in case Russia stops importing energy, the minister confirmed. When it comes to diversifying imports, the United States is not the exporting country that is being looked at, but rather the Arab world. Habeck said the fracking gas from the US was “not the object of desire” but “normal gas” from other regions of the world.

During his two-day US trip, Habeck plans to meet US Treasury Secretary Janet Yellen, Trade Representative Katherine Tai and Energy Secretary Jennifer Granholm. The focus is on security and energy policy issues.