Рубрика | Oilreview

Twenty years later

The State Statistics Committee for the first time over 20 years has published Ukraine’s consolidated energy balance, and three MPs from the Bloc of Yulia Tymoshenko have prepared a bill on its development and use.

In one of the novels of Alexander Bushkov, a favorite writer of the author of this article, the premier was trying to defend himself before the monarch, saying that all the figures proving the country was on the verge of collapse could be found in the pile of documents he had submitted. The head of state’s answer deserves to be cited: «The reports had the [figures] all split up. They were spread out between three dozen presentations, reports and memoranda, submerged in a variety of other data, and flooded in long reports and thick volumes. And all I needed was just one concise and shocking paper. You should have explained to me with a short document just how deep the abyss that has opened before us actually is.»

It seems that those who have been leading Ukraine for the past two decades were never interested in «short documents» – namely the country’s consolidated energy balance. This is because actual energy efficiency figures — rather than those drawn up on paper — and realistic rather than standard amounts of gas consumption, and real rather than invented amounts of gas imports, would become known to the public. It turns out that «Ukraine’s energy dependence» speculated by politicians is a mere 40% of the primary energy supplies from abroad. The development of a forecast of fuel and energy balance is an integral part of the forecast for sectoral and macroeconomic development of any state. It is used to make a comprehensive analysis of material flows and to determine the structural proportions of demand and supply for all types of commodities in the fuel and energy complex.

Being an analytical tool for forecasts, the fuel and energy balance specifies the dynamics of domestic production and imports of commodities, and thus determines the peculiarities of the formation of supply on the domestic market. On the other hand, the balance provides a look ahead at the characteristics of domestic and external demand, which is needed to draw up flexible production plans for industrial development.

From the macroeconomic point of view, the country’s consolidated energy balance reflects the movement of physical volumes of energy resources at the stages of production (extraction), transportation, processing, and final consumption. Its data are used to assess major parameters of macroeconomic development, such as the levels of energy supply and energy efficiency of the national economy. The preparation of the projected balance of production and consumption for certain types of commodities in the fuel and energy complex plays a key role in the development of forecast documents and roadmaps for Ukraine’s economic development, setting tasks for domestic and foreign economic policy for the short- and medium-term outlook.

You can read full article in  journal «Terminal: Oil Review» №6 (592) 13 Feb 2012

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