The International Energy Agency and oil industry officials plan a series of meetings designed to improve statistics gathering and reporting.
IEA, which has been criticized for the inaccuracy of its data (see article, p. 24), said the workshops complement an effort IEA and five other international organizations have initiated to improve oil-market transparency with more accurate, timely, and complete data.
Robert Priddle, IEA executive director, said, "Lack of reliable data leads to uncertainty in markets, and uncertainty produces volatility, which is bad for producers and consumers alike.
"In an imperfect world, there will always be a need for second-hand and anecdotal evidence," he said. "But many of the problems that plague statistics gathering and compilation can be reduced through international cooperation and the political commitment of governments to transparency."
Five other sponsors support the movement: the Asia Pacific Energy Research Center, the European Union's Eurostat, the Latin American Energy Organization, the Organization of Petroleum Exporting Countries, and the United Nations Statistics Division.
The initiative began when oil analysts discussed improving market data last July during a meeting the US Department of Energy promoted in Madrid.
Representatives of the six organizations met in Paris in December and identified technical issues-methodology, definitions, and units of account-on which they could act directly. They determined that individual member countries would have to act on other matters such as late or incomplete submissions.
At a Bangkok meeting Apr. 2-3, representatives of the six groups along with 20 producing and consuming countries discussed the causes for lack of transparency in oil markets and agreed on steps to extend and improve statistical coverage. They stressed the need for countries, organizations, and the oil industry to provide more resources for statistical work. The Bangkok meeting produced plans for a 6-month exercise involving countries and international organizations. Participants will meet in Saudi Arabia before the end of the year to assess the results and plan further actions.
During the 6 months, IEA and oil industry officials will hold roundtables to consider factors that could complicate the collection of accurate data. These include smuggling, conversion factors, unreported producer and commercial stocks, line fill and minimum operating stocks for new facilities, and "apparent" demand in China and the former Soviet Union.
"Lack of reliable data leads to uncertainty in markets, and uncertainty produces volatility, which is bad for producers and consumers alike. In an imperfect world, there will always be a need for second-hand and anecdotal evidence."
