Future management of the Compulsory Stocking Obligation in the UK

The UK is required to hold emergency stocks of oil products to release to market in the event of short term oil supply disruptions, known as the compulsory stock obligation (CSO). Currently Government issues individual directions to business. There are concerns the present system creates under investment in adequate storage, posing a long-run risk to resilience, and may harm the ability of the UK to meet the CSO in the long run.

The policy objective is to ensure that the CSO continues to be met in the future in the UK, as the overall obligation increases in response to declining UKCS production and to ensure the UK holds and can deploy sufficient emergency stocks effectively to mitigate the detrimental impacts on the UK or any oil supply disruption. This supports Government’s security of supply objectives.

Please send enquiries to deccdownstreamoilteam@decc.gsi.gov.uk or write to:

David Rolfe

Energy Resilience

Department of Energy & Climate Change

Third Floor Area E

3 Whitehall Place

London, SW1A 2AW

Tel: 0300 068 2924

Email: deccdownstreamoilteam@decc.gsi.gov.uk

Your response will be most useful if it is framed in direct response to the questions posed, though further comments and evidence are also welcome.

Responses should be emailed to deccdownstreamoilteam@decc.gsi.gov.uk or hard copies sent to the address above.