Since 1973, conditions on international energy markets have changed fundamentally several times. Two sharp increases in the price of oil caused global recessions; then the price dropped rapidly at the end of 1 985. The transformations in Central and Eastern Europe and in the former Soviet Union have given a new dimension to East-West cooperation in the utilization of the energy resources of these countries, especially Russia. The Gulf war of 1990/91 once again underscored the uncertainty as to the development of the price of oil, which is still the most important source of energy.

Because of Germany’s heavy dependence on imports, not only of oil but also of other commodities, the supply system must remain flexible and adaptable and have access to different sources. This integration in the world’s energy markets also affords special opportunities to ensure an efficient energy supply. In the wake of the oil price crises in the 1970s, the European Community placed the common energy policy on a much broader basis. Today the Community has a considerable array of instruments available to support structural change in the energy sector, to promote the rational use of energy, and to reduce dependence on oil (these include the JOULE/THERMIE, SAVE and ALTENER programs).