Abstract
This study aims to examine energy security in terms of crude oil and copper supply. While oil remains the leading energy commodity globally, copper is crucial for many new technologies, foremost for RES. Therefore, both oil and copper are extremely important for current and future energy security. This article contains a bivariate methodological approach to a comparative analysis of oil and copper supply: determining supply security with an Index of security of supply, and examines price stability with generalized autoregressive conditional heteroscedasticity (GARCH) models. This research provides evidence that there are many differences but also significant similarities between these two completely different commodities in terms of both supply security and price stability. Facing the future for RES, significant demand may cause a threat to energy security on a previously unknown scale. Therefore this instability, both supply- and price-related, appears to be the main threat to future energy security.
Highlights
Throughout the years, energy security has remained one of the most important topics for analysis and discussion [1]
There is an assumption that high dispersion together with political stability of the suppliers favors the security of both crude oil and copper supply
This study examined energy security in the case of both crude oil and copper s It found that the price of crude oil is twice as volatile as the price of copper in the research
Summary
Throughout the years, energy security has remained one of the most important topics for analysis and discussion [1]. Due to two oil shocks in the 1970s and 1980s, energy security was mostly perceived as energy supply [6,7]. Environmental issues are becoming increasingly important [8,9], and renewable energy sources (RES) are developing intensively. Despite the huge popularity of the energy security area, difficulties have been encountered in developing a clear and precise concept of this notion [12,13,14,15]. The continuity of energy supplies at an acceptable price still might be perceived as being at the core of a vast majority of the existing definitions of this concept
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