International and national energy and oil policy - Where we are going to

International and National Energy and Oil Policy-In the long run energy policy is to be based on the available energy reserves. It is necessary to use the reserves carefully and to develop new and economical energy sources in due course. The short-term policy is shaped by the availability of oil, the price level, and by the worldwide economic situation. The result is overcapacity of refineries and tankers for the coming years and unutilized production capacity in the OPEC countries. The reduction of oil consumption in the European Community with overcapacity in the domestic oil industry creates a conflict with the export intention of the producing countries. In order to avoid unnecessary investments it is necessary to have an international understanding. The energy economy of the Federal Republic of Germany faces structural problems. As a result of the reduced consumption of heavy fuel oil, the load on the refineries will be considerably lowered in the future. Cracking units are required to convert the heavy fuel oil into lighter products. Many risks are involved in the investments, since these investments run over a long term, whereas the political situation may change quickly. As far as temporary governmental measures become necessary, those should be flexible and agreeable to the economic structure, without contradicting the long term energy policies. (orig.)