A Comprehensive Approach for Interagency Cooperation on Energy Infrastructure Security
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The document discusses a comprehensive approach for interagency cooperation on energy infrastructure security. It identifies key challenges including asymmetric supply chains, network management issues, complex vulnerabilities from interdependencies, underinvestment, and regulatory deficits. It proposes dimensions to address these challenges, including improved governance, safety and security standards, security sector reform, and workshops on best practices. The overall goal is to develop a cooperative framework to strengthen protections for critical energy infrastructure from terrorist threats.
A Comprehensive Approach for Interagency Cooperation on Energy Infrastructure Security
- 1. Heiko Borchert A Comprehensive Approach for Interagency Cooperation on Energy Infrastructure Security Protecting Critical Energy Infrastructure from Terrorist Attack OCEEA-ATU Expert Meeting Vienna, 17 July 2008 Dr. Heiko Borchert & Co. Consulting & Research Bruchmattstrasse 12 CH-6003 Lucerne T +41 41 312 07 40 F +41 41 312 07 44 www.borchert.ch IPA Network International Public Affairs Krausnickstrasse 1 D-10115 Berlin T +49 30 27 57 28 3 F +49 30 27 57 28 59 www.ipa-international.org
- 2. EIS: A Complex Framework Competition and Liberalization Power and Monopoly Producer Countries Transit Countries Consumer Countries Chokepoints Physical Infrastructure Consumption Industry ICT Production Explo- Trans- Storage Distri- Power Refinement ration port Refinement bution Generation Storage Human Factors Consumption Organization Households Common Market Focus Downstream Control Upstream Control Comprehensive Approach for Energy Infrastructure Security, OCEEA-ATU Meeting, Vienna, 17 July 2008 Page 2
- 3. 5 Key Problems Asymmetric Government control of resources: 85-90 % Supply Chain Government control of production: 74 % (Gas), 78 % (Oil) Network Insufficient trans-border capacities Management Current network capacities vs. increasing use of renewables Complex Interdependencies between energy infrastructure and Vulnerabilities other critical infrastructure sectors (in particular ICT) Deregulation vs. security Deliberate attacks on energy infrastructures Underinvestment Energy infrastructure investments needs are much bigger than disposable funds (EU-27: €1.79 trillion until 2030) Crowding-out effect between different energy infrastructure investment categories (LNG) Regulatory Lack of common safety and security standards along Deficits global energy supply chain No international regulation authority Power shift to the benefit of producing countries Comprehensive Approach for Energy Infrastructure Security, OCEEA-ATU Meeting, Vienna, 17 July 2008 Page 3
- 4. Comprehensive Approach: Dimensions Role of National Oil/Gas Companies Incentives for Regulatory Investments Framework Role of Community Outside Investors Level Relationships Playing Field Local Community Governance Capacity-Building Economy Capabilities Sustainable Society Distribution Reciprocity of Income from and Politics Extractive Develop- Transparency Resources ment Comprehensive Interagency Security Use of Sector Reform Renewables Approach Standards Environ- Safety Impact of Armed and Climate Change ment and Security Forces on Infrastructure Security Science Role of Conflicting Uses Private of Soil and Securing Transport and Actors Technology Chokepoints CO2 Abatement vs. Opposition against Detection Surveillance Security and Infrastructure Human Situational Awareness Rights Energy Modeling & ICT Security Efficiency Simulation Material Science Comprehensive Approach for Energy Infrastructure Security, OCEEA-ATU Meeting, Vienna, 17 July 2008 Page 4
- 5. Safety and Security Standards Challenges Lack of common EI safety and security standards along the supply chain Diverging regulatory approaches Deregulation can further security risks Suggestions for Best Practice Workshops EI safety and security standards for the global energy supply chain (OSCE, IEF, G8 PPP Forum, Companies) Methods to identify and assess critical EI and interdependencies between CI sectors (OSCE, EU, NATO, G8 PPP Forum, Companies) Identifying, classifying, and assessing EI risks (OSCE, IEF, NATO, EU, G8 PPP Forum, Companies) EI resilience (OSCE, IEF, EU, G8 PPP Forum, Companies, Associations) SCADA safety and security (OSCE, IEF, NATO, EU, G8 PPP Forum, Companies, Associations) Comprehensive Approach for Energy Infrastructure Security, OCEEA-ATU Meeting, Vienna, 17 July 2008 Page 5
- 6. Security Sector Reform Challenges There is a need to adapt the SSR paradigm with regard to the Rationale for limited defense and security spending Separation of security and defense forces Scope of existing capacity-building programs Suggestions Build awareness for the need to invest in security and defense capabilities to advance energy infrastructure security (OSCE, NATO, EU, AU, GCC) Transparency-building on dual-use spending and capabilities for EIS and other security/defense tasks (OSCE, NATO, EU, AU, GCC) Focus SSR more strongly on dual-use capabilities and interagency interaction (OSCE, NATO, EU, UN, NGOs) Take account of specific demands of hydrocarbon sector when setting up judicial/administrative reforms (OSCE, EU, CoE, UN, EITI, NGOs) Comprehensive Approach for Energy Infrastructure Security, OCEEA-ATU Meeting, Vienna, 17 July 2008 Page 6
- 7. Community Relationship Management Challenges If people benefit from infrastructure projects they will take care of them Understand local ownership as the “first line of defense” Suggestions Workshop on the role of community-building and EI promotion in national/international development policies (OSCE, UN, EU, IFI) Workshop on how to create off-springs from (energy) infrastructure projects for local communities (OSCE, EU, IFI, UN, Companies, NGOs) Workshop on risks and opportunities of infrastructure collocation (OSCE, EU, IFI, UN, Companies, NGOs) Advance the idea of integrated community-based security based on shared responsibilities between local communities, energy companies, private security forces, government agencies and security/defense forces (OSCE, EU, NATO, NGOs, AU, GCC, Companies) Comprehensive Approach for Energy Infrastructure Security, OCEEA-ATU Meeting, Vienna, 17 July 2008 Page 7
- 8. Role of Private Security Contractors Challenges PSC are a matter of fact in the energy sector “Image problems” obstruct a sober analysis of their role Suggestions Awareness-building workshop on the role of PSC in the energy sector (OSCE, NATO, EU, PSC, Companies, NGO) Sharing best practice with regard to setting-up security agreements (OSCE, NATO, EU, PSC, Companies, NGO) Integrate private security training for local security forces into international SSR programs (OSCE, NATO, EU, PSC, Companies, NGO) Create level-playing field between local security forces and private security contractors (OSCE, NATO, EU, PSC, Companies, NGO) Comprehensive Approach for Energy Infrastructure Security, OCEEA-ATU Meeting, Vienna, 17 July 2008 Page 8
- 9. Conclusions 1. Worldwide dependence on energy infrastructures is growing, thus making the safety and security a key policy challenge OSCE countries are among the key actors affected by this trend 2. In today’s international environment there is a serious need for transparency and confidence-building with regard to energy infrastructure security This plays into the hands of the OSCE 3. A successful comprehensive approach to energy infrastructure security very much depends on coordination between national and international levels and public and private actors Could the OSCE serve as a coordination platform? 4. The logic of global energy supply chains should lead to more joint regional security initiatives along key infrastructure corridors Could the OSCE serve as a facilitator in Central Asia, the Caucasus, the Black Sea region, and in the Mediterranean region? Comprehensive Approach for Energy Infrastructure Security, OCEEA-ATU Meeting, Vienna, 17 July 2008 Page 9