"Energy Security Risks and Global Financial Markets "

    Energy security is emerging as a crucial issue for policy makers, energy industries and the general public. The recent electric power blackouts in North America, the attack on a French oil tanker near Yemen, sabotage and terrorist acts in major oil producing countries, such as Indonesia and Russian Federation, and the 11 September attacks in New York and Washington have contributed to a greater sense of vulnerability. These worries are heightened by company and policy failures such as the Enron bankruptcy, the Californian energy crisis and their subsequent financial crises. Underlying these headlines are sober economic and strategic facts that call for greater attention to energy security by UNECE member States. Energy import dependence is rising in the UNECE region. At the same time, the cost of developing incremental sources of energy supplies is increasing. Supply routes are getting longer and are distinctly vulnerable to terrorist attack. The full implications of market liberalisation for energy security are unclear. Social and ethnic strife in a number of producing and transit countries are unresolved. 

    Clearly one of the key issues related to energy security is its impact on the global financial sector and investments in the energy sector. This year the Committee on Sustainable Energy is initiating a dialogue within the Energy Security Forum among senior executives from major oil and natural gas companies, energy producers, and leading financial institutions to review energy security risks, financial market reactions and potential energy policy responses. The Committee will have the opportunity to discuss energy security risks and decide on how its dialogue with the global financial institutions may develop further. 

For further information, please contact:

Mr. Sead Vilogorac  

Tel.: + 41 22 917 24 62
Fax: + 41 22 917 00 38 
E-mail: sead.vilogorac@unece.org