The paper "The Resilience of Energy Supply Chains of the EU" is a great example of a business case study. Disruptions of energy supply chains impact negatively on the firms that engage in the production and transportation of energy products. The resilience of the supply chains for natural resources is a mandatory necessity that deals with such disruptions. Since energy is a fundamental asset in all economies, such disruptions may also impact adversely on society and the economy. Previous literature has covered the resilience of the energy supply systems, risk management in supply chains and the disruption strategies.
However, the resilience of the energy supply chains is the primary focus of the essay. Moreover, previous literature contained generalized ideas pertaining to the resilience of the supply chains for oil and gas on a global basis. The essay narrows down the scope to the resilience of the European oil and gas supply chains. Risk Management and Resilience The procedure of detecting threats, possible strategies, and the countermeasures to manage the emergent supply chain disruptions constitutes risk management and resilience. Resilience refers to the potential of a system to regain its initial operations after the occurrence of a disruption.
Therefore, the resilience of the oil and gas supply systems refers to the capability of the systems to bounce back to their normal operations following a disruption. The Role of the European Union Europe has witnessed an increasing demand for energy; particularly oil and natural gas thereby yielding increasing levels of oil and gas imports to meet the soaring demand (Deloitte 2010). In the quest to improve the resilience of the supply chains to guarantee the uninterrupted availability of petroleum and gas, the European Commission has established a security program that caters for the security issues associated with the energy supply chain.
Some of the strategies and initiatives developed to enhance the resilience of the energy supply chain encompass new infrastructure projects, specific legislative frameworks, crises response mechanisms for oil and gas and the construction of pipelines. The Protection of Energy Infrastructure Apparently, the critical infrastructure associated with the supply of petroleum and natural gas is transport and energy. Oil and gas transport utilizes sea carriers to a large extent thereby necessitating port and maritime safety.
The ISPS (International Ship and Port Facility Security) code is one of the recent strategies established by the European Union (EU) to enhance the security of the port and maritime carriers and facilities. The Code has developed preventive measures that deal with unlawful acts and threats in the harbor facilities and international trade. The Port Security Directive is the other complementary measure to the ISPS Code. The Directive requires all member states to define the periphery of all the ports that require the implementation of security measures.
Moreover, it provides the framework that governs the application of the measures besides evaluating their conformity to the standard recommendations (European Commission 2012d). The European Program for Critical Infrastructure Protection (EPCIP) is the other activity that aims at enhancing the protection of energy and transport infrastructure pertaining to the production and supply of oil and natural gas resources. The program directs all the member countries to identify the pertinent infrastructure and plan for the safety of the infrastructure within their boundaries. The development of a standard procedure to govern the identification of the critical infrastructure and the implementation of the standard protection measures is the other responsibility of the Commission with support from the member states.
It is proper to opine that the decision of the Commission to engage the member states in the identification of the critical infrastructure and the potential protection measures is rewarding. Apparently, the individual members of the Commission understand the critical infrastructure that plays a pivotal role in the transportation and production of oil and natural gas. As a result, integrating their information into general protection measures is a mandatory necessity for the success of the security mission.
Christopher, M & Peck, H 2004, ‘Building the resilient supply chain’, International Journal of Logistics Management, vol. 15, no. 2, pp. 1-13
Council Directive 2009, ‘Stocks of crude oil and petroleum products: Summaries of EU legislation’, available from: http://europa.eu/legislation_summaries/energy/external_dimension_enlargement/en0006_en.htm
Deloitte 2010, ‘Downstream oil-short term resilience and longer term security of supply’, Final Report for DECC.
European Commission 2012d, ‘EU legislation on maritime security, available from: http://ec.europa.eu/transport/maritime/security/doc/legislation_maritime_security.pdf
The European Commission 2012, ‘The Changing oil value chain: Implications for security of supply’, European Policy Brief.
Urciuoli, L, Mohanty, S, Hintsa, J & Gerine Boekesteijn, E 2014, ‘The resilience of energy supply chains: a multiple case study approach on oil and gas supply chains to Europe’, Supply Chain Management: An International Journal, vol. 19, no. 1, pp. 46-63.