20120531-IEA-Oil_and_Gas_Emergency_Policy_Switzerland_2012_Update_21页_1mb

Switzerland Energy and Oil Overview Summary

Core Content

Switzerland is a country with no domestic oil production, relying entirely on oil and natural gas imports to meet its energy needs. Oil and natural gas together account for a significant portion of the country's total primary energy supply (TPES), with oil being the dominant source at around 40% in 2010 and natural gas at 12%. The country has also been working on phasing out nuclear energy following the Fukushima incident, with a plan to decommission reactors by 2034.

Key Figures

• Oil Consumption (kb/d):
  • 2000: 274 kb/d
  • 2011: 236 kb/d
  • Transport sector: 56% of total oil consumption in 2010
  • Gasoline demand: Decreased by 21% from 2000 to 2011
  • Diesel demand: Increased by 80% from 2001 to 2011
  • Heating oil demand: Decreased by 40% from 2001 to 2011
  • Net imports (kb/d): 236 kb/d in 2011
  • Import dependency: 100% for oil and 100% for natural gas
  • Refining capacity (kb/d): ~125 kb/d
  • Oil in TPES (2010): 40%
  • Natural Gas in TPES (2010): 12%

Oil Market and Consumption

Switzerland's oil market is fully liberalized, with prices influenced by global market fundamentals and exchange rates. The government imposes excise taxes and VAT, and also collects levies to fund the stockpiling system. The country's oil demand has been decreasing, especially in the transport and heating sectors, while diesel demand has been rising.

• Main importers (2010): BP Switzerland, Total Suisse, ESSO Schweiz GmbH, Shell, Tamoil, Eni Suisse, Petroplus
• Crude oil imports (2011):
  • Kazakhstan: 41%
  • Azerbaijan: 22%
  • Algeria: 20%
  • Nigeria: 6%
• Refined product imports (2011): Mainly from European countries, with Germany accounting for 51% of total imports.

Oil Supply Infrastructure

Switzerland has a limited refining capacity and relies heavily on imports through pipelines, rail, and Rhine barges. The main oil supply infrastructure includes:

• Refineries:
  • Cressier refinery (Petroplus): 68 kb/d, supplies via SPSE pipeline from France
  • Collombey refinery (Tamoil): 57 kb/d, supplies via Oléoduc du Rhône from Italy
• Pipelines:
  • SAPPRO pipeline: 30.3 kb/d, connects with French SPMR pipeline
  • Oléoduc du Rhône: 61 kb/d
  • Oléoduc du Jura Neuchâtelois: 91 kb/d
• Oil ports: Three in Basel for shipping via Rhine barges
• Storage capacity: ~49.7 million barrels (7.9 million cubic metres), mostly used for industry compulsory stocks
• Storage mix (end of 2011):
  • Middle distillates: 64%
  • Motor gasoline: 32%
  • Residential fuel oil: 2%

Emergency Policy for Oil

• Stockholding obligation: Imposed on industry, not on the government
• Stock requirements:
  • Motor gasoline, diesel, heating oil: 4.5 months
  • Jet fuel: 3 months
• Stockholding structure:
  • Overall industry obligation: 4.5 months
  • Individual importers: 2.2 to 9 months
  • Substitute stockholder: Can hold up to 50% of individual obligation
  • Common stockholder: Fills the gap between industry obligation and individual/substitute holdings
• Stock release:
  • Compulsory stocks are released based on supply disruptions
  • The process involves calculation, application, permission, repayment, and monitoring
  • Timeframe for release: less than 15 days
  • "2 step-procedure": Voluntary drawdown (Step 1) and mandatory drawdown (Step 2)
• Financing:
  • Compulsory stock costs are funded by levies on imports collected by CARBURA
  • In 2010, import fees amounted to 65 million Euro, and stockholding costs amounted to 83 million Euro
  • Amortization system: The Guarantee Fund pays the difference between market price and a target "pool price"
  • Pool price (2011): 75 CHF/m³

Natural Gas Overview

• Natural gas demand (mcm/y): Increased from 2.682 mcm/y in 1995 to 3.7 bcm (10.1 mcm/d) in 2010
• Natural gas in TPES (2010): 12%
• Import dependency: 100%
• Main importers: Pipeline imports from Russia, Germany, and other European countries
• Compulsory stocks: Held in the form of heating oil, equivalent to 4.5 months of natural gas consumption
• Dual-fuel installations: Account for ~40% of total natural gas consumption
• Emergency policy:
  • Federal Council can oblige dual-fuel consumers to switch to fuel oils
  • Allocation scheme for non-switchable large consumers in case of supply disruption

Stockholding and Compliance

• Stock monitoring: Conducted by CARBURA through regular audits
• Non-compliance penalties:
  • Fines up to 83,000 Euro
  • Possible prison sentences
  • Withdrawal of oil import licence in case of material violations
• Stock levels (end of 2011): 2.5 million tons of oil products were unloaded
• Stock levels (end of 2012): 35 mb, equivalent to 149 days of 2010 net imports

Key Policies and Structures

• Federal Department of Economic Affairs (FDEA): Oversees short-term energy security
• Swiss National Emergency Strategy Organisation (NESO): Combines government and industry expertise
• Delegate for National Economic Supply: Must be from the private sector and reports to FDEA
• CARBURA: Coordinates stockholding, issues import licences, manages guarantee funds
• Emergency response:
  • Compulsory stock release during supply disruption
  • Demand restraint measures and fuel switching as complementary strategies