§ Mr. BoswellTo ask the President of the Board of Trade if she will make a statement on the adequacy of strategic stocks of petroleum products. [31695]
§ Mr. Battle[holding answer 2 March 1998]: The oil crises of the 1970s, and the economic damage caused by the two oil price hikes, led to the creation of the International Energy Agency and international agreements on holding stocks of oil and procedures to deal with an oil supply disruption. These arrangements were restricted to oil because of its key role in energy supply and because a large proportion of reserves were located in potentially less stable areas. European legislation based on Article 103 (difficulties in supply of certain products) of the Treaty led to provisions for individual countries to hold oil stocks. These provisions remain in place and the UK is required to keep stocks of oil equal to or above 76 days worth of consumption at any one time. The latest provisional data for stocks as at 1 January 1998 show the UK as having 13.2 million tonnes of oil products (including the product equivalent of stocks of crude oil), equal to 78 days worth of consumption. This is considered to be more than adequate, especially given the level of our indigenous resources, to meet the UK's contribution towards an international response to an oil supply shortage.