An Energy Charter Perspective on Energy Security
-
Upload
brooke-gentry -
Category
Documents
-
view
33 -
download
5
description
Transcript of An Energy Charter Perspective on Energy Security
![Page 1: An Energy Charter Perspective on Energy Security](https://reader031.fdocuments.us/reader031/viewer/2022020721/56813631550346895d9dac26/html5/thumbnails/1.jpg)
Energy Charter Secretariat
NEEDS Forum 2Krakow, 5-6 July 2007
Tim Gould
Senior Advisor to the Secretary General
Energy Charter Secretariat
An Energy Charter Perspective on Energy
Security
![Page 2: An Energy Charter Perspective on Energy Security](https://reader031.fdocuments.us/reader031/viewer/2022020721/56813631550346895d9dac26/html5/thumbnails/2.jpg)
2Energy Charter SecretariatSource: BP Statistical Review 2007
Energy Prices
![Page 3: An Energy Charter Perspective on Energy Security](https://reader031.fdocuments.us/reader031/viewer/2022020721/56813631550346895d9dac26/html5/thumbnails/3.jpg)
3Energy Charter SecretariatSource: BP Statistical Review 2007
World Fuel Shares
![Page 4: An Energy Charter Perspective on Energy Security](https://reader031.fdocuments.us/reader031/viewer/2022020721/56813631550346895d9dac26/html5/thumbnails/4.jpg)
4Energy Charter SecretariatSource: BP Statistical Review 2007
Shares of World Energy Consumption
![Page 5: An Energy Charter Perspective on Energy Security](https://reader031.fdocuments.us/reader031/viewer/2022020721/56813631550346895d9dac26/html5/thumbnails/5.jpg)
5Energy Charter Secretariat
Production capacity limit
Hotelling rent
Ricardian rent
Volume
Price
Demand curve
Supply curve(cost of supply)
Energy efficiency
Economic growth
E&P
Tech
no
log
y
Under influence of consumers
Under influence of producers
Cost-oriented price
Replacement value-oriented price
Elements of Interdependence
![Page 6: An Energy Charter Perspective on Energy Security](https://reader031.fdocuments.us/reader031/viewer/2022020721/56813631550346895d9dac26/html5/thumbnails/6.jpg)
6Energy Charter Secretariat
The Energy Charter Treaty
![Page 7: An Energy Charter Perspective on Energy Security](https://reader031.fdocuments.us/reader031/viewer/2022020721/56813631550346895d9dac26/html5/thumbnails/7.jpg)
7Energy Charter Secretariat
Energy Charter Principles
National sovereignty over energy resourcesRespect for contract and propertyStable and open frameworks for flows of energy, capital, technology and investmentAn orientation towards market solutionsNon-discriminationTransparency
Energy efficiency and sustainable
development
![Page 8: An Energy Charter Perspective on Energy Security](https://reader031.fdocuments.us/reader031/viewer/2022020721/56813631550346895d9dac26/html5/thumbnails/8.jpg)
8Energy Charter Secretariat
ECT and Investment Security
• Energy Charter Treaty is the only broad multilateral investment protection treaty(equivalent to 1000+ BITs)
• Reduction in non-commercial risk for private investors from other participating states
• Promotes respect for contract and for property
• Enforceable through state-state and investor-state arbitration
• Functioning instrument of international law: currently 15 cases brought to arbitration (2 awards, 2 settlements, 11 pending)
![Page 9: An Energy Charter Perspective on Energy Security](https://reader031.fdocuments.us/reader031/viewer/2022020721/56813631550346895d9dac26/html5/thumbnails/9.jpg)
9Energy Charter Secretariat
Oil and Gas Project Investment
Source: IEA WEO 2006
Total Investment Needs(2006-2010):$ 306 Billion
![Page 10: An Energy Charter Perspective on Energy Security](https://reader031.fdocuments.us/reader031/viewer/2022020721/56813631550346895d9dac26/html5/thumbnails/10.jpg)
10Energy Charter Secretariat
Energy Trade
Source: BP Statistical Review 2007
![Page 11: An Energy Charter Perspective on Energy Security](https://reader031.fdocuments.us/reader031/viewer/2022020721/56813631550346895d9dac26/html5/thumbnails/11.jpg)
11Energy Charter Secretariat
Reliable Cross-Border Flows
• Provisions based on WTO
• Particular focus on specific challenges associated with transit of energy through fixed infrastructure (pipelines, grids)
• Obligation on participating states to facilitate transit and to ensure the reliability of existing flows
• Unique conciliation procedure in case of transit disputes
![Page 12: An Energy Charter Perspective on Energy Security](https://reader031.fdocuments.us/reader031/viewer/2022020721/56813631550346895d9dac26/html5/thumbnails/12.jpg)
12Energy Charter Secretariat
GDP, Energy and Carbon Emissions
Source: BP Statistical Review 2007
![Page 13: An Energy Charter Perspective on Energy Security](https://reader031.fdocuments.us/reader031/viewer/2022020721/56813631550346895d9dac26/html5/thumbnails/13.jpg)
13Energy Charter Secretariat
Efficiency and Security
• With limited direct leverage over resource-owners, energy efficiency is a major instrument for net energy importers to improve security (together with fostering renewables, diversification and improving energy production technology)
• Resource-owners also have interest to improve efficiency: low domestic prices come with a technological cost, and limit available export volumes
• International cooperation to improve energy efficiency likely to be major element of post-2012 framework for combating climate change
![Page 14: An Energy Charter Perspective on Energy Security](https://reader031.fdocuments.us/reader031/viewer/2022020721/56813631550346895d9dac26/html5/thumbnails/14.jpg)
14Energy Charter Secretariat
Priorities
• Ratification and implementation of the Treaty by all signatory states
• Ensuring that the Charter responds to new challenges and developments on international energy markets
Substance: possibility of additional Protocols, Declarations, non-binding instruments (Model Agreements, Best Practice Documents)Geographical expansion: East and Southern Asia, the Middle East and Mediterranean regions
![Page 15: An Energy Charter Perspective on Energy Security](https://reader031.fdocuments.us/reader031/viewer/2022020721/56813631550346895d9dac26/html5/thumbnails/15.jpg)
15Energy Charter Secretariat
More information
Energy Charter web site www.encharter.org