5 Basic Principles Of Energy Security

5 Basic Principles Of Energy SecurityEnergy aegis is put in first place among the priorities facing the European Union. Although the problems of ensuring nix security were standing in front of a united Europe from the beginning of the integration process in recent years they have acquired the superior relevance and importance for the EU. This is due to the fact that today the EU depends 50% on external muscularity supplies to its market and on the policies pursued by provider states. In addition, European countries are concerned about the well-known problems with the vigor supply for them against the backdrop of turmoil amidst Russia, as the main EU animation supplier and Belarus and Ukraine, through whose territory the Russian hydrocarbons are delivered to the West. Russian-Ukrainian standoff on the issue of brag prices and transportation is the major concern of EU member states and obligate them to talk about the need to beam animation supplies.Concentrating 7% of know ledge domain population, more than than a quarter of dry land GDP and 20% of world trade, the EU has only 2% of the worlds black gold and 4% graphic splosh. Limitation of its own resource base in Europe bankers bills for a signifi supportt dependance of the EU on external zip fastener supplies. The European natural gas market is the third largest in the world. The spate of gas function in EU countries reached 513 billion m3 (21% of world consumption). Russia is the second largest EU oil supplier and provides 33% of the EU black gold needs. The Russian Gazprom is the leaseer in EU natural gas supplies with 46% of total. If we talk about security of cipher supplies, the main task in this area is the vim sectors geographical and resource diversification i.e. the expansion of supply sources, supply routes and pipelines.The EU security in energy sectorNABUKO I EUThe European Union is seeking to protect self from energy dependence on Russia with diversification of natural gas supplies policy by agreements with non-conventional energy suppliers, the Caspian states (Caspian states have only 4-5% of worlds gas reserves). But due to the unreliability of Russian energy supplies through third countries (Belarus and Ukraine) as well as the possibility of using Russian resources as a political tool, transporting Caspian Sea hydrocarbons (Azerbaijan, Kazakhstan and Turkmenistan) to the West has acquired great importance to the EU.Improve supply reliability and energy security EU responsible implementation of the Southern Gas Corridor. The planned corridor is composed of three separate the Trans-Caspian gas pipeline (the project provides for deli very(prenominal) of natural gas from Kazakhstan and Turkmenistan to Azerbaijan), Baku Tbilisi Erzurum (from Azerbaijan through Georgia to Turkey) and Nabucco (from Turkish territory, via Bulgaria, Romania, Hungary Austria).Thus, the reliability of energy supply in Europe is due to the changing geographics of supply, i ncreasing the number of exporting countries, the creation of new infrastructure facilities.In the face of increasing contender from non-traditional suppliers of hydrocarbons Russia is very important to maintain the competitiveness of their energy in the European market, to tell effective and reliable conditions for their trip to Western Europe.From the European Union course to diversify energy imports implies Russias post-Soviet space deterrence, to avoid remove or indirect control by the latter everywhere the mining sector and transit infrastructure in surrounding areas.Revealing in this regard, the role of such organizations as the GUAM (Georgia, Ukraine, Azerbaijan and Moldova), which can be an active participant in non-Russian energy supplies to European markets.Major energy projects GUAM is the White Stream. White Stream the idea of the Ukrainian side to diversify natural gas supplies to Europe and Ukraine and reducing dependence on Russia. According to the innovation of developers this pipeline should pass along the Eurasian oil transport corridor, i.e. from Azerbaijan to the Georgian port of Supsa, and then across the Black Sea to Ukraine and onward to the EU, bypassing Russia.From a geopolitical point of view, the creation of transport corridor from east to west, bypassing Russia, on a plan of Brussels, willTo diversify energy supplies to reduce dependence of the EU from Russia and thus ensure energy securityDismantle the transport system of the former Soviet Union, largely through the territory of Russia and provides strategic control over the export of interchange Asian energy resourcesOpen the path to European Union cooperation with countries seeking to establish independent from Russian energy transportation routesEstablish control over the hydrocarbon resources of the component part and not to everyow these resources were available to RussiaAt the expense of control over energy resources to ensure the establishment of political control o ver the countries of the regionSet the geopolitical pluralism, independence (from Russia), the newly independent states.Implementation of the EU projects such as the Nabucco, whose design capacity is 30 billion m 3 of gas per year, is a complex ch entirelyenge for the Russias national interests towards Europe and tangibly affect Russias foreign policy and foreign economic activity.Russian energy resources development and policyEnergy policyRussias European direction is traditionally occupies a leading position in trade of fuel and energy resources. The EU has return 53% of Russian oil exports and 62% natural gas.For Russia, with its unique geographical and geopolitical position, the problem of transit of energy resources are of particular importance, since it depends on the transit of hydrocarbons in the main markets of third countries. This implies the task of ensuring uninterrupted supplies of Russian energy exports to Europe.Improving energy security EU calls for Russia to de velop and implement a wide range of policy and energy initiatives aimed at diversifying sources of supply of hydrocarbons. Passionate desire of Russia to find new routes for transporting oil and gas to the EU, bypassing the neighbors (Belarus and Ukraine), good reason a choice of routes is important beca give it allows not depending on the mood of the transit country.Currently, edifice of the North European Gas Pipeline Northern stream (Nord Stream) will run chthonic the Baltic Sea from Vyborg, Russia to Greifswald Germany. Capacity will be 55 billion m 3 of natural gas per year. Implementation of this project will suspensor solve the problem of diversification of export flows of gas, will expand supply in Western Europe and the implementation of Russias obligations under the concluded and the future long contracts for the supply of natural gas.The second project is the South Stream (South Stream), which will run under the Black Sea from Novorossiysk to the Bulgarian port of Va rna, and then assign into two branches and will pass through Serbia and Hungary to Austria through Greece to southern Italy. Capacity will reach 60 billion m 3 of natural gas per year.The main objective of these projects is to provide direct communication between the seller (Russia) and customers (Western, Central and South-Eastern Europe), bypassing the territory of Belarus and Ukraine, through which the now Russian natural gas to the EU through pipelines Urengoi Pomary Uzhgorod and Yamal Europe.As a Eurasian power, Russia is naturally interested in a free hand in its energy policy in all directions. At the end raises the question of correcting the current asymmetry of Russian energy exports in favor of the eastern direction. Russias national interest is to diversify markets for energy resources, expanding the geography of supplies of hydrocarbons. Due to this, Russia reduces dependence on the potential risks and, of course, opens up new and promising markets.To enter the Asia- Pacific region will create a pipeline Eastern Siberia Pacific Ocean (ESPO) pipeline, which would connect the oil fields of Western and Eastern Siberia to the ports of Primorsky Territory in Russia and provide access to the markets of the Asia Pacific region.This pipeline capacity of 80 zillion tonnes a year must pass from the Taishet (Irkutsk region), north of Lake Baikal through Skovorodino (Amur region) in the Pacific Kozmino Bay (Primorsky Krai).The priority of Russian foreign energy policy includes the construction of a branch in China from being built oil pipeline Eastern Siberia Pacific Ocean. Power outlet will be 15 million tones a year.The implementation of the above projects will provide an opportunity to solve simultaneously the two most important geo-economic and geopolitical objectives provide a way out of Russian crude oil to the rapidly growing market of the Asia and the Pacific region and reduce dependence on the main emptor of energy.Tendencies of development of world energy markets and energy security issuesMalo history, why energy is needed, crucial statisticsIn our fast developing world, according to recent prognosis, energy consumption can grow up to 30% within next 15 years. World oil postulate can became higher for 42% and natural gas consumption will rise for about 60%.Todays world market is characterised with four most important circumstancessharp rise of energy demand in developing Asian countries (up to 45% of perspective world growth in oil consumption)increasing gap between demand and production volume of gas in economically developed countries (for example, by 2020 between 60% and 70% of gas consumption in Europe will be provided with the account of imports)insufficient capacity for the production, processing and transportation of oil and gas as well as the limited possibilities of new sitesinsufficient transparency of world energy marketAll these conditions presented to the fore the problem of energy security. Also, the glob alization process with which the world has faced in the twentieth century, directly affect the sphere of world energetic1. The enormous energy demand growth in Asia intensified competition for stable and cheap energy sources and in many parts of the world (especially rich in energy resources) occurring instability and conflicts. These circumstances contri exactlye to energy instability and large fluctuations in energy prices. World reserves of cheap energy are reduced, crossed the zenith of production while consumption is growing steadily. In light of these circumstances should be considered global processes in the energy sector. If we take in consideration allocation of worlds energy reserves, it can be seen that every part of the world has some reserves or reserves are allocated within sane range (e.g. Russia energy reserves are sufficient to cover rising European demand, Gulf of Mexico and Venezuela reserves are most convenient to America) Dijagrami. Experts assessment utter t hat in that location is sufficient energy reserves, but the cost of exploitation going to be sufficiently higher. World of cheap and accessible energy is definitely shag us. It is necessary to mention climate change and slowly growing tendency of reduction in carbonic acid gas emissions which will affect the consumption of fossil fuels but the global demand will not be reduced.Achieving global energy security will be reached by the world community implementation of measures in three main areasReliable supply of the world economy traditional forms of energyIncrease the efficiency of energy resources and environmental protectionDevelopment and use of new energy sources.All world and especially developed countries and largest energy suppliers have to contribute to achieving energy security.Basic principles of energy securityDespite all the differences in the approaches of major states, there are common points in the understanding energy security. In fact, it is possible to isolate th e basic principles that are more or less shared by all states.Energy security is the mutual responsibility of both the energy consumer and the energy supplier. This is acknowledged by all, but the problems switch off where the consumer and provider begin to demand each from other guaranties of supply or pay for these supplies. For example, in a moderate variant, the demand for guaranties of supply can lead to the consumers request to allow him representing the economic interests of the company for development and transportation of energy resources in the provider country. This is the case where the EU requires from Russia opening its energy sector for European investments. On the other hand, Russia sets requirements of direct accessing to the customer delivery systems. In the radical version assurance of supply can be expressed in direct political and economic dictation towards supplier country, up to carrying out military operations against them. Also, in the recent history we hav e witnessed that supplier country can impose measures such as delivery cutoffs, which affected not only targeted countries but many others (Russia Ukraine and Russia Belarus disputes).However, there is a third option, presented by Asian countries. It is the willingness to guaranty delivery due on the one hand, the participation of companies representing the economic interests of consumers in developing energy resources in the provider country, on the other playing by the rules of the provider country and investing heavily in infrastructure, mining and transportation. In this case, it is not a simple commodity-payment scheme, but a more complex investment, indemnity and other contractual relationships. The consumer provides his assurance of supply at the expense of investment in infrastructure provider, so as to optimize the supply chain, making it more modern, less costly, etc. Suppliers, allowing consumers to develop projects in their territory introduce not only secure and st able market, but also a strategic investor.Thus, we are talking about the principle of responsibility and interdependence of consumer and provider2.Further, despite the limited number of countries that act as energy suppliers, development of events shows that there is competition between them moreover, the very limited number of suppliers can toughen this competition. Factor that stimulates competition among providers is definitely another principle called diversification of sources and suppliers. At the moment there is competition between energy suppliers and it must also be built into the system of global energy security.The most important condition for this is the energy security depoliticization. In fact, the competition based on economic principles, competition for consumers is logical and understandable phenomenon. However, any use of energy resources for political purposes in the situation of rising demand leads to conflict, consequences of which can be unpredictable. Every a ttempt to put energy as a subject of political conflict is challenge to the global energy security system. Thus, the principles of energy security are also the depoliticization and fair competition. Moreover, if we can present the competition between suppliers, it is much more serious phenomenon the competition between consumers. The global reduction of energy production will imply the competition among energy buyers and consequently instability in particular regions could appear.Economic development without immoveable energy supply is impossible. Therefore, overcoming global problems such as poverty, epidemics, poor education, environmental challenge, without economic stability is unattainable. Energy supply and demand, market competition, joint investments, global warming, CO2 emissions, joint stability and many other factors indicate that energy security is primarily a global issue so we can point at another principle, the principle of globality.. In this context, we should not forget that energy security is inseparable part of a global security system.Looking the importance of energy for the quality of life and life in general, it is necessary to emphasize the principle of social orientation of energy security for both individual countries and the world at large.