Oil and Gas Emergency Policy: Sweden 2012 update

Sweden has the lowest share of fossil fuels in the energy supply mix among IEA member countries. This is a significant difference from the mid‐1970s, when fossil fuels made up three‐quarters of Sweden’s energy supply, and is the result of a concerted effort to move away from the use of oil through the development of nuclear and renewable energy sources. Sweden’s energy policy seeks to further increase the share of renewable energy sources, and the share of fossil fuel is also to be further reduced. Under this policy, demand for both oil and natural gas is anticipated to decline from current levels. While fully dependent on imports to meet domestic oil demand, Sweden is a net exporter of refined oil products. Overall oil demand will likely decline in the coming decade, however demand for oil in the transport sector is expected to grow. Sweden fulfils its oil stockholding requirements to both the IEA and the European Union by placing minimum stockholding obligations on industry and major consumers. During a supply disruption and as a contribution to an IEA collective action, Swedish authorities would reduce the minimum obligation, thereby granting operators permission to draw stocks belowthe minimum level. In a natural gas crisis, supplies to protected customers are safeguarded while the physical balance of the gas system would be maintained by restricting or discontinuing supplies to non‐protected customers in a crisis. System operators are obliged to have in place crisis plans for dealing with emergency situations.