Energy security for a changing world

For the first time in its history, COVA adds a renewable product to its stock. 9.6 kt of HVO is available at all times for release during disruptions of the diesel market.

The Russian invasion of Ukraine. The Netherlands takes part in two IEA-led collective actions by releasing oil stocks. During the first action in March, it is decided to release 858,000 barrels of strategic stock held by the business sector (around 20% of the industry stockholding obligation). A second (long-term) collective action follows in April, whereby COVA puts over 1,365,000 barrels of strategic diesel onto the market. In June, COVA is asked to replenish these stocks and to buy an extra 500 kt of diesel, in anticipation of the introduction of oil sanctions against Russia.

COVA’s remit is extended to include market analysis. The Netherlands considers energy market intelligence to be a vital part of crisis resilience. In addition, COVA is designated as an Operator of an Essential Service, which entails strict requirements in relation to cybersecurity.

With the European Directive 2009/119/EC, the EU system for preparing an oil crisis has been streamlined with the administrative obligations of the IEA. For the Netherlands, the resulting obligations have been laid down in the revised Petroleum Products Stockpiling Act 2012. This act lays down the principles of the Dutch strategic oil stock, including the tasks of COVA and the industry subject to stockpiling obligations. Specifics for COVA and the parties subject to stockpiling obligations have been laid down in the Petroleum Products Stockpiling Decree 2013 and the Petroleum Products Stockpiling Regulation 2013. All entered into force on 1 April 2013.

Civil war in Libya. The IEA’s 28 OECD members decide to release 60 million barrels of oil in response to the disruptions in oil supplies due to the war. COVA puts 1,136,000 barrels (155 kt) of crude oil onto the market: 586,000 barrels from its own physical stock and 550,000 barrels by using the right to deliver under CSO ticket contracts.

The European Union introduces Directive 2009/119/EC, which requires all EU Member States to maintain strategic oil stocks equivalent to at least 61 days of inland consumption. The directive also sets out additional conditions for the management and accessibility of these strategic reserves.

Hurricanes Katrina and Rita cause major damage to offshore production platforms, pipelines and refineries in the Gulf of Mexico. This prompts a collective action under the auspices of the IEA. The Netherlands takes part again, releasing 749,000 barrels of diesel.

Outbreak of the Gulf War. The Netherlands takes part in the IEA’s first collective action by releasing 660,000 barrels of crude oil from the COVA stock.

ICOVA becomes independent and its name changes to COVA. From now on, strategic stocks are maintained by an independent organisation on the instructions of the government.

The Dutch government sets up the interim agency ICOVA (Stichting Interim Centraal Orgaan Voorraadvorming Aardolieproducten, i.e. Interim Netherlands Petroleum Stockpiling Agency) in order to meet its stockholding obligation.

Queen Juliana signs the first Dutch Petroleum Products (Stockpiling) Act (Wva) into law.

Formation of the International Energy Agency (IEA) through the International Energy Programme (IEP) Treaty, in response to the global oil crisis. The Netherlands is one of the founding members.