IEA (2020), Oil Security Toolkit, IEA, Paris https://www.iea.org/reports/oil-security-toolkit, License: CC BY 4.0
The establishment of an emergency oil response system is a core commitment that each IEA Member country has taken when signing the IEA’s founding treaty, the Agreement on an International Energy Program (IEP). This includes ensuring oil stock levels equivalent to no less than 90 days of net imports and to be ready to collectively respond to severe supply disruptions affecting the global oil market.
IEA Member countries have substantial flexibility in how they meet the stockholding obligation, which allows each country to establish an emergency response system most appropriate to their domestic circumstances, taking into account the country’s oil market structure, political institutions, and overall energy system. Oil security legislation, including regulations and response plans, is one of the primary components of an effective emergency response system. The particular nature of the oil security legislation will vary from one country to another depending on country’s policies and choice of stockholding model.
This Oil Security Toolkit provides a profile of each IEA member country’s oil security legislation, which can be particularly helpful for any country seeking to establish their own emergency system. Policymakers can explore the examples of IEA countries’ legislation on the various issues to be considered when establishing a national emergency response.