By Shada Islam Jun 26, 2006, 3:37 GMT
Brussels - With global competition for energy sources becoming ever fiercer, the European Union's top policy makers have vowed to make access to secure oil and gas supplies a top priority of the bloc's foreign policy.
Recent plans unveiled by Benita Ferrero-Waldner, the EU's external relations commissioner and Javier Solana, European foreign and security policy chief, say the energy-hungry bloc must work on an array of diplomatic fronts to meet its growing energy needs.
'The development of a coherent and focused external EU energy policy would enhance the collective external energy security of the Union,' say Solana and Ferrero-Waldner in a report sent to EU capitals for further debate.
The study, spotlighting some of the bloc's key energy priorities in the coming years, says EU governments must back up their national energy policies through joint action to forge stronger partnerships with energy-exporting nations, including Russia.
Furthermore, common efforts to talk to emerging consumers, like China and India, on reining in runaway energy consumption were also required, according to the paper.
Among ten so-called 'guiding principles' identified in the report, are plans for 'energy partnerships' with oil and gas exporters, efforts to improve production and export capacities in energy-producing countries and moves to upgrade energy transport infrastructure, including the building of new gas pipelines.
The list also includes EU action to improve the investment climate in energy-producing countries.
Solana and Ferrero-Waldner's key message is that given its dependence on foreign energy suppliers, the EU can no longer afford to be a passive player in a rapidly changing global energy scene.
While the focus must be on ensuring the good functioning of world energy markets, the EU must also pay more attention to diversifying its energy supplies and investing in new energy sources, especially in regards to natural gas, the report says.
'Increasing dependence on energy imports from unstable regions and suppliers presents a serious risk,' the paper warns, adding that some major producers and consumers have been using energy as a 'political lever' while also showing an unwillingness to play by free-market rules.
EU officials admit that a key question facing the bloc is 'what do we do with Russia?'
The question has become the more pressing as imports of Russian gas currently account for 24 per cent of the EU's foreign gas supplies while Russian oil represents 27 per cent of EU imports.
Energy security and the key role played by Russia in supplying natural gas to the EU have climbed up the bloc's list of concerns following a brief disruption in Russian gas supplies to Western Europe during a price dispute with Ukraine early this year.
For many in Brussels, the move tarnished Moscow's reputation as a reliable energy supplier and encouraged the EU to intensify a search for alternative supply routes.
European fears of excessive energy reliance on Russia have also increased amid reports that Russia's state-controlled Gazprom natural gas giant was considering acquiring Britain's largest gas distributor.
The strategy document hammered out by Solana and Ferrero-Waldner says the EU must try and clinch a comprehensive energy cooperation agreement with MOscow, covering all energy products.
The aim of the deal should be the 'integration of the EU and Russian energy markets in a mutually beneficial, reciprocal and non-discriminatory manner,' the report says.
The pact should be 'ideally negotiated' as part of EU-Russia efforts to clinch a new partnership and cooperation agreement when the old one runs out next year, it adds.
EU officials insist that such an EU-Russia energy partnership would represent a 'win-win scenario' of benefit to both sides: Russia would pledge to ensure that Europe has access to stable and reliable supplies of Russian gas and oil, while Moscow would be assured of European investments and technology.
The EU paper also calls for closer cooperation and dialogue with other leading energy consuming nations, including the US, Japan, China and India.
Europeans have been especially alarmed at China's aggressive courting of African oil producing nations to meet its growing energy needs.
Officials say rising energy consumption in the United States must also be curbed to prevent global energy shortages which in turn could lead to increased political frictions.
Talks among leading consumers should focus on improving the transparency and operation of world energy markets and to develop sustainable energy resources as well as energy efficiency, the EU report says.
EU officials admit that implementing their ambitious plans will require time and much effort. But they warn that, in an increasingly tough world energy environment, Europe cannot afford to take the back seat.
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