Implementation Can be implemented relatively Depending on approach likely to take timing quickly (~1 year, post decision ~ 4 years to implement before stock point) for small volumes but will can be begin to be held; large take longer for large volumes volumes would need done over a 10 year+ period as storage facilities are constructed. Key contractual Relatively straight forward More complex including: requirements including: Likely tender process to establish Government to Government storage options Agreements Arrangement for funding for Framework contracts for ticket substantial up front cost reservation More likely need to set up stock Tender process agency with associated legislation International and Provides international compliance Provides domestic security as well as Domestic security so gives domestic security through compliance with international security collective international action but obligations. unlikely to provide physical stock for domestic security. Issues Can be a perception that money is High cost given current supply being paid for no real increase in security using commercial stocks is security (other than meeting deemed to be sufficient (by both the acceptability criteria of IEA) NESA and by industry). Possible impact on domestic market operation. Responsibility for emergency stocks This section looks at who could be responsible for holding and managing emergency stocks. The IEA classifies country's stocks into two categories - industry or public. Public stocks are those held by the government or a stock agency specifically set up to manage emergency stocks. Industry stocks are those held by the petroleum industry in the country for normal commercial operation and in some cases due to a legal obligation to hold certain stock levels. Stock agencies can be government, public or private companies but in all cases there is some government oversight/regulation with the stocks only being able to be released with government authorisation. Whatever the ownership, the IEA classifies agency stock as public. This report looks at the option of a stock agency as part of the government responsibility section (although industry can set up a stock agency to manage their compulsory stock obligations - this option will be discussed in the industry section). There are many different models for managing emergency stocks in the IEA (Table 6). There is no IEA stock obligation on net exporting countries.
Implementation timing Can be implemented relatively quickly (~1 year, post decision point) for small volumes but will take longer for large volumes Depending on approach likely to take ~ 4 years to implement before stock can be begin to be held; large volumes would need done over a 10 year+ period as storage facilities are constructed. Key contractual requirements Relatively straight forward including: Government to Government Agreements Framework contracts for ticket reservation Tender process More complex including: Likely tender process to establish storage options Arrangement for funding for substantial up front cost More likely need to set up stock agency with associated legislation International and Domestic security Provides international compliance so gives domestic security through collective international action but unlikely to provide physical stock for domestic security. Provides domestic security as well as compliance with international security obligations. Issues Can be a perception that money is being paid for no real increase in security (other than meeting acceptability criteria of IEA) High cost given current supply security using commercial stocks is deemed to be sufficient (by both the NESA and by industry). Possible impact on domestic market operation. Responsibility for emergency stocks This section looks at who could be responsible for holding and managing emergency stocks. The IEA classifies country's stocks into two categories - industry or public. Public stocks are those held by the government or a stock agency specifically set up to manage emergency stocks. Industry stocks are those held by the petroleum industry in the country for normal commercial operation and in some cases due to a legal obligation to hold certain stock levels. Stock agencies can be government, public or private companies but in all cases there is some government oversight/regulation with the stocks only being able to be released with government authorisation. Whatever the ownership, the IEA classifies agency stock as public. This report looks at the option of a stock agency as part of the government responsibility section (although industry can set up a stock agency to manage their compulsory stock obligations - this option will be discussed in the industry section). There are many different models for managing emergency stocks in the IEA (Table 6). There is no IEA stock obligation on net exporting countries.