COMPULSORY OIL RESERVES OF THE RNM - status and challenges

Abstract

The supply of crude oil and oil products in the EU is a very important issue, especially for the transport sector and the chemical industry. The concentration of production, the reduction of oil reserves and the increased consumption of oil products worldwide contribute to an increased risk of supply difficulties.

The European Council in the Action Plan 2007 to 2009, within the Energy Policy of Europe, emphasized the need to strengthen the security of the supply of oil reserves to the European Union, as well as to each EU member state, with the aim of oil availability in case of crises. The Energy policy of Europe imposes the need for greater compatibility of the European Community system with the system envisaged by the International Energy Agency.

In accordance with Council Directive 2006/67/EC of July 24, 2006, the obligation of EU member states to keep minimum reserves of crude oil and/or oil derivatives is imposed^[1]. Oil reserves are calculated based on the average daily domestic consumption during the previous calendar year. However, reserve holding obligations under the International Energy Program Agreement of November 18, 1974 are calculated on the basis of net imports of oil and petroleum products. For that reason and as a result of other differences in the methodology, the way in which the obligations to keep compulsory reserves and emergency reserves of the EU are calculated, with the directive 2009/119/EC of the Council of September 14, 2009, it is stipulated that the Member States should pass laws, regulations or other administrative provisions by which the stocks of oil reserves until December 31, 2012, will be at a level of at least 90 days of average daily net import or 61 days of average daily consumption in the country, respectively which of the two quantities is bigger.

The Law on Compulsory Oil Reserves of the RSM regulates the obligation to ensure a high level of security of the supply of crude oil and oil derivatives through the creating, storing and maintenance of minimum stocks of crude oil and/or oil derivatives in the form of compulsory oil reserves. the manner and conditions of creation, storage and maintainance of the compulsory oil reserves, introducing the necessary procedures for intervention in order to deal with a severe shortages of oil derivatives in the market and other issues of importance for the compulsory reserves. This Law began to be applied from 01.01.2021 and it partially transposes the Directive 2009/119/EU, compulsory reserves should be formed gradually in order to ensure the total compulsory reserves kept at all times in the Republic of N. Macedonia to correspond to at least 90 days of daily average net imports or 61 days of average daily domestic consumption, in the previous calendar year, depending on which of the two stated quantities is bigger.

The formation of compulsory reserves of oil and oil derivatives is a process of procurement of crude oil and/or oil derivatives and their storage in storage facilities, thus providing conditions for intervention supply to the market with oil derivatives in case of disruption of the energy security of the state caused by large-scale supply disruptions. The central body for keeping oil reserves is the RSM is Compulsory Oil Reserves Agency, which is authorized to establish, maintenance, storage and selling of the compulsory oil reserves. Storage and maintenance of the oil reserves is the responsibility of the trading companies – warehouses keepers, which in their tank capacities should store, keep and replenish crude oil and/or oil derivatives from the compulsory reserves.

[1] Official gazette L 217, 8.8.2006.,page  8.