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Title: Future for oil and gas in the EEC. I

Journal Article · · Pet. Int.; (United States)
OSTI ID:6743657

This study by UNICE (Union of Industries of the EEC), prepared prior to the October 1973 Mideast conflict, shows remarkable foresight in the light of subsequent events. Of the 3 major industrial units (the U.S., Europe, and Japan), Europe would be in the weakest position in the event of an energy shortage. During the 1973-85 period, the techncal risks threatening the security of Europe's oil supplies are subordinate to the political and economic risks: (1) Certain producing countries may be tempted to use their oil potential as a means of influencing foreign policy by limiting production, (2) international monetary problems and worldwide inflation may give rise to producer-country reactions which are not confined to the technical field, and (3) the utilization of the vast financial resources of some producer countries may prove a serious problem. UNICE considers it imperative for the EEC, in collaboration with industry and with due regard for the fundamental importance of competition, to arrive at a common energy policy as soon as possible and to take the decisions necessary to ensure the long-term security of energy supplies on satisfactory economic terms. The EEC and the national governments must seek to promote the security of energy supplies in all forms, ensure an adequate profitability level to finance investment, deal more flexibly with environmental problems, adopt a more homogenous attitude, and encourage the development of alternative energy sources. For oil specifically, there are 4 ways of reducing the political and economic risks threatening exploration and production: limiting demand for oil products, increasing energy supplies, facilitating the oil industry's activities, and encouraging action by governments.

OSTI ID:
6743657
Journal Information:
Pet. Int.; (United States), Vol. 14
Country of Publication:
United States
Language:
English