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JAKARTA. Emergency response to oil supply disruptions is the primary mission of the International Energy Agency (IEA) since its establishment in 1974. This information describes the decision making process carried out collectively by the IEA, action programs that are available especially the use of buffer stock, as well as important disturbances which occurred on petroleum supply and the steps that were taken IEA to address them.

Didier Houssin, Director of Energy Markets and Security IEA, in a joint-workshop "Establishing Policy, legislation, Structure and Procedures for National Emergency Preparedness" at the Hotel Borobudur Jakarta (16 / 6) said that the IEA emergency response mechanisms established by the Treaty on the International Energy Program (PEI) in 1974, which requires each member state buffer IEA oil reserves equivalent to at least 90 days of net oil imports.

"In the event of serious disruption to oil supplies, the member states must release the buffer stock, reduce demand, switching to other fuels, increase domestic production, or if required to share its oil supplies," said Houssin.

To complete the mechanism specified in the agreement PEI, continued Houssin, The IEA has made on procedures to be flexible for use with the backup buffer / strategic petroleum, efforts to reduce demand, as well as other steps that can be applied to address oil supply disruptions .

These joint efforts designed to reduce negative impacts in case of sudden shortage of oil supply by providing additional oil in global markets through various emergency response programs, which include increased supply and declining demand.

Although oil supply shortages could lead to oil price increases, but the IEA emergency response programs are not operated by oil prices, because oil price increases can be caused by factors other than lack of supply, and emergency response action program goal together is to overcome the scarcity of oil supply significantly . (KO)

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