Luciani, G. (2004) Security of Supply for Natural Gas Markets: What is it and what is it not? INDES Working Paper No. 2, 1 March 2004. [Working Paper]
Abstract
The issue of security of gas supplies is frequently discussed on the basis of intuitive and nonsystematic arguments. Greater import dependence is normally equated with greater insecurity, and strategic stocks are the risk management tool most commonly considered. This paper strives to offer a systematic framework of analysis and shows that import dependence does not necessarily entail greater insecurity – actually, the opposite may well be the case. It also discusses several alternatives to strategic stocks for risk management, which are more interesting and promising.
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