© OECD/IEA, 2008

London Group on Environmental and Economic AccountingLondon Group on Environmental and Economic AccountingBrussels, Belgium, 30 September 2008Brussels, Belgium, 30 September 2008

Harmonisation of the Definitions of Harmonisation of the Definitions of Flows and Products:Flows and Products:

The Contribution of the InterEnerStat InitiativeThe Contribution of the InterEnerStat Initiative

Jean-Yves GarnierHead, Energy Statistics Division

International Energy Agency

© OECD/IEA, 2008

UN

Secretaria de EnergíaMexico

5% gap5% gap5% gap5% gap

1995 1996 1997 1998APEC 2653 2903 3087 3134IEA 2741 2872 3062 3109OLADE 2722 2969 3022 3070OPEC 2618 2858 3022 3071UN 2834 2977 3166

Crude Oil Production for Mexico (in kbd)

3210

Avoiding/reducing the differences between statistics published by various organisations

Reducing the reporting burden passed to countries

Avoiding/reducing the differences between statistics published by various organisations

Reducing the reporting burden passed to countries

Why a need for harmonising definitions and Why a need for harmonising definitions and strengthening cooperationstrengthening cooperation

© OECD/IEA, 2008

CTY

CTY

CTY

CTY

CTY

CTY

CTY CTY

CTY

CTY

CTY

CTY

CTY CTY

CTY

CTY

CTY

CTY

The JODI Initiative: A first attempt to harmonise oil The JODI Initiative: A first attempt to harmonise oil definitions and to strengthen cooperationdefinitions and to strengthen cooperation

Joint questionnairewith harmonised

definitions

© OECD/IEA, 2008

Country:Country:Month:Month: Unit:Unit:

JOINT APERC/EUROSTAT/OECD-IEA/ OLADE/OPEC/UN DATA EXERCISE

Production

Imports

Exports

Closing Change

Refinery Intake

Crude Oil

Stocks

Petroleum Products

LPG Gasoline KeroseneGas/Diesel

OilFuel Oil Total Oil

Refinery Output

Imports

Exports

Closing Change

Demand

Stocks

Start simple: one key to successStart simple: one key to success

Simple Definitions Simple Definitions

Month -1 and Month -2Month -1 and Month -2

Choice of units left to organisations Choice of units left to organisations

A Simple Format (42 data points) A Simple Format (42 data points)

© OECD/IEA, 2008

International Energy Forum Conferences

JODI Conferences

Inter-Secretariat Working Group Meetings

International Energy Forum Conferences

JODI Conferences

Inter-Secretariat Working Group Meetings

Amst.May 04

ViennaMay 01

ViennaOct 01

RiyadhNov. 01

MexicoMay 02

Luxem.Jan 02

ViennaApr 02

OsakaSep 02

MadridJuly 00

ParisNov 00

BangkokApr 01

RiyadhNov 00

ViennaJan 03

ParisJuly 02

ParisDec 03

ViennaJun 04

ParisNov 05

Luxem.Jan 06

ViennaSep 06

N YorkMay 06

RiyadhNov 06

DohaMay 06

RiyadhJan 05

ParisJul 05

RiyadhNov 05

Amst.May 04

MexicoMay 02

ParisDec 03

CairoOct 03

BaliOct 04

Harmonisation and Cooperation is a long ProcessHarmonisation and Cooperation is a long Process

ParisNov 07

Launch of the JODI Database

© OECD/IEA, 2008

Since the launch, the JODI database is Since the launch, the JODI database is updated every monthupdated every month

Although still imperfect, the database has started to be used by analysts and oil companies

Although still imperfect, the database has started to be used by analysts and oil companies

© OECD/IEA, 2008

What has JODI changedWhat has JODI changedHow Statistics is Viewed by Policy Makers and

Analysts Policy makers and analysts have realised that building a detailed,

timely and reliable global database on oil supply and demand cannot happen overnight.

It involves political commitment, a great deal of cooperation between companies, countries and organisations. It also needs proper resources.

The place and role of statistics and statisticians have certainly benefited from JODI

International Cooperation JODI has contributed to strengthen links between organisations:

The strong cooperation between APEC and the IEA is a great example of the strengthening of the links

InterEnerStat: JODI has created a momentum to further strengthen international cooperation not only on oil statistics but on all energy statistics

On 19 November 2005, King On 19 November 2005, King Abdullah launched the JODI Abdullah launched the JODI

database live on internetdatabase live on internet

© OECD/IEA, 2008

A short backgroundA short background

At the 36th Session of the UN Statistical Commission, energy was in the spotlight of the Commission

This led to the Ad-hoc Energy Group Meeting on 23-25 May 2005 organised by UNSD in New York

This subsequently led to the recommendation to establish A City Group (the Oslo City Group)A City Group (the Oslo City Group) An Inter Secretariat Working Group (InterEnerStat)An Inter Secretariat Working Group (InterEnerStat)

© OECD/IEA, 2008

The 1The 1stst InterEnerStat Workshop InterEnerStat Workshop

Date: 22-23 November 2005

Place: International Energy Agency, Paris

Participants: 24 major regional and international organisations. Both data providers (IEA, UNSD, OPEC, Eurostat, FAO) and users (WB, IMF, UNFCCC,…)

Objectives: To hear from each organisation what they do, what are To hear from each organisation what they do, what are

their problems and their expectations for more their problems and their expectations for more co-operationco-operation

To pave the way for more harmonisation and for To pave the way for more harmonisation and for strengthening bilateral and international co-operationstrengthening bilateral and international co-operation

© OECD/IEA, 2008

Two Clear RequestsTwo Clear Requests

Harmonisation

Methodologies

Definitions

Units

Conversion factors

Harmonised demands and questionnaires

Handbooks and manuals

Training

Quality framework

Harmonisation

Methodologies

Definitions

Units

Conversion factors

Harmonised demands and questionnaires

Handbooks and manuals

Training

Quality framework

Co-operation

Raising political awareness

Harmonisation

Joint Questionnaires

Joint Training

Common manuals

Joint quality assessment

Exchange of data

Co-operation

Raising political awareness

Harmonisation

Joint Questionnaires

Joint Training

Common manuals

Joint quality assessment

Exchange of data

© OECD/IEA, 2008

The first step was to collect from each organisationThe first step was to collect from each organisationits own set of definitionsits own set of definitions

WORLD BANK

FAO

UNEUROSTAT

OPEC

OAPEC

The 2nd step was to assemble them in a transparent way easy to access

Preparation of a joint website

The 2nd step was to assemble them in a transparent way easy to access

Preparation of a joint website

© OECD/IEA, 2008

An overview of the InterEnerStat websiteAn overview of the InterEnerStat website

© OECD/IEA, 2008

An overview of the InterEnerStat websiteAn overview of the InterEnerStat website

© OECD/IEA, 2008

An overview of the InterEnerStat websiteAn overview of the InterEnerStat website

© OECD/IEA, 2008

An overview of the InterEnerStat websiteAn overview of the InterEnerStat website

© OECD/IEA, 2008

Comments on the website

Decision to hire an independent expert to look at flows and products definitions and propose “compromise” definitions

Other actions

The 2The 2ndnd InterEnerStat Workshop InterEnerStat Workshop19-20 November 2007, IEA, Paris19-20 November 2007, IEA, Paris

© OECD/IEA, 2008

Current status on InterEnerStatCurrent status on InterEnerStat

The expert has prepared a set of compromise definitions

The set of definitions are being circulated to all organisations for comments

Organise meetings by fuel for concerned organisations to discuss findings (end October 2008)

Try to get an overall agreement on most (all) of the definitions

© OECD/IEA, 2008

OilA group of liquid hydrocarbons of fossil origins comprising Crude (that is, unprocessed) oil and fully or partly processed products from the processing of Crude oil. Functionally similar liquid hydrocarbons and organic chemicals from vegetal or animal origins are identified separately within oil under liquid biofuels.

Crude OilCrude oil is a mineral oil of fossil origin extracted from underground reservoirs and which comprises a mixture of hydrocarbons and associated impurities, such as sulphur. It exists in the liquid phase under normal surface temperature and pressure and usually flows to the surface under the pressure of the reservoir. The physical characteristics (density, viscosity, etc.) are highly variable.In its marketable state crude oil may include field or lease condensate recovered from associated and non-associated gas where it is commingled with the commercial crude oil stream.Crude oil may also be extracted from reservoirs containing heavy oils or tar sands which need heating or emulsifying in situ before they can be brought to the surface.

Natural Gas Liquids (NGL)NGL are liquid or liquefied hydrocarbons recovered from wet (associated or non-associated) natural gas in separation facilities or gas processing plants. See entry for natural gas for an explanation of some of the terms used here.Natural gas liquids comprise ethane, propane, butane (normal and iso-), (iso) pentane and pentanes plus (sometimes referred to as natural gasoline or plant condensate). NGL may be distilled with crude oil in refineries, blended with refined petroleum products or used directly depending on their characteristics.Do not confuse NGL with Liquefied Natural Gas (LNG).

Refinery FeedstockA product from crude oil refining or the processing of hydrocarbons in the petrochemical industry which is destined for further processing in the refinery excluding blending.

Additives/OxygenatesAdditives and oxygenates are non-hydrocarbon compounds added to or blended with a product to modify fuel properties (octane, cetane, cold properties, etc.):•oxygenates, such as alcohols (methanol, ethanol), ethers (such as MTBE (methyl tertiary butyl ether), ETBE (ethyl tertiary butyl ether), TAME (tertiary amyl methyl ether)); •esters (e.g. rapeseed or dimethylester, etc.);•chemical compounds (such as TML, TEL and detergents).

Liquid BiofuelsLiquid biofuels are derived from organic matter and used as complete or partial substitutes for petroleum products at the point of use.The most common liquid biofuels are biogasoline and biodiesel.

Sample of proposed compromised definitionsSample of proposed compromised definitions

Proposal from

the expert

© OECD/IEA, 2008

The The WebsiteWebsite

Cooperation and harmonisation are progressing Cooperation and harmonisation are progressing much more than one could thinkmuch more than one could think

© OECD/IEA, 2008

In fact, a lot of work took place in each organisation and between organisations

In fact, a lot of work took place in each organisation and between organisations

Harmonisation

Manuals

Training

Statistics Law

Dissemination

© OECD/IEA, 2008

Organisations can work together on joint Organisations can work together on joint manuals, e.g. the IEA/OECD/Eurostat Manualmanuals, e.g. the IEA/OECD/Eurostat Manual

SpanishSpanish RussianRussian ChineseChinese

EnglishEnglish FrenchFrench GermanGerman TurkishTurkish

Manuals

© OECD/IEA, 2008

The JODI Manual is another example of The JODI Manual is another example of harmonisation and cooperationharmonisation and cooperation

Manuals

© OECD/IEA, 2008

Organisations can work together on joint training Organisations can work together on joint training sessions, e.g. the JODI training programme sessions, e.g. the JODI training programme

1st JODI Training

------14-19/08/06

------OLADE

IEFSIEA

OPECUNSDIMF

1st JODI Training

------14-19/08/06

------OLADE

IEFSIEA

OPECUNSDIMF

2nd JODI Training

------29/01-2/02/07

------IEFS

EurostatIEA

OPECIMF

2nd JODI Training

------29/01-2/02/07

------IEFS

EurostatIEA

OPECIMF

CaracasCaracas

JohannesburgJohannesburg

CaspianCaspianSeaSea

3rd JODI Training

------23-26 10/07

------IEFSIEA

OPECUNSDIMF

3rd JODI Training

------23-26 10/07

------IEFSIEA

OPECUNSDIMF

AlgiersAlgiers

4thJODI Training

------09/08------IEFS

APECIEA

4thJODI Training

------09/08------IEFS

APECIEA

BangkokBangkok

© OECD/IEA, 2008

The ultimate goal would be to have one questionnaire The ultimate goal would be to have one questionnaire common to all countries and organisationscommon to all countries and organisations

WORLD BANK

FAO

UNEUROSTAT

OPEC

OAPEC

?

Dream or reality?Dream or reality?

© OECD/IEA, 2008

Term to be harmonised

Comments

Definitions

Units

Questionnaires

Methodology

Processing

Quality checks/standards

Dissemination

Harmonisation passes by Harmonisation passes by an agreement on key pointsan agreement on key points

Not so easy – eg:crude oil production

Easy in principle – conversion factors

Related to definitions but also to level of detail

Depending on convention adopted

e.g. TPES vs. TPER

Who processes what(e.g. Mexico: APEC, OECD, OLADE, UNSD)

Essential for sake of comparability/level of confidence

Should be easy… when all the other points have been agreed

© OECD/IEA, 2008

The primary purpose of energy statistics is to The primary purpose of energy statistics is to support the work of energy policy makers: support the work of energy policy makers:

the example of the IEAthe example of the IEA

0

10

20

30

40

50

60

70

80

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

US$/bl

0

10

20

30

40

50

60

70

80

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

US$/bl

Diversity (gas, coal, electricity)

Oil prices at $37/bl Emissions

Rio SummitRio SummitKyoto ProtocolKyoto Protocol

Production Imports/Exports

Stocks

Consumption Transformation

Establishment of the IEAEstablishment of the IEA

Prices escalatingPrices escalating

End-Use Socio-Economic

Production

Efficiency Efficiency

Efficiency

1st Oil Crisis1st Oil Crisis 2nd Oil Crisis2nd Oil Crisis

Dependency Price

Security

Therefore, definitions of energy flows and products are specific to energy analysts and policy makers

Security of supply

Security of demand

Energy intensity vs energy efficiency

Stocks (levels, changes)

Imports and exports (definition varies from fuel to fuel)

Therefore, definitions of energy flows and products are specific to energy analysts and policy makers

Security of supply

Security of demand

Energy intensity vs energy efficiency

Stocks (levels, changes)

Imports and exports (definition varies from fuel to fuel)

© OECD/IEA, 2008

Most of the services in charge of energy Most of the services in charge of energy statistics are not the national statistics officesstatistics are not the national statistics offices

Example of the IEA Observatoire de l’Energie for FranceObservatoire de l’Energie for France Energy Information Administration for USEnergy Information Administration for US METI for JapanMETI for Japan Only a few countries have appointed their statistics Only a few countries have appointed their statistics

offices as data providersoffices as data providers

The same applies to other organisations OLADE for Latin AmericaOLADE for Latin America APEC for Asia-PacificAPEC for Asia-Pacific OPEC for oil exporting countriesOPEC for oil exporting countries

© OECD/IEA, 2008

What does this mean in terms of priority and What does this mean in terms of priority and harmonisation?harmonisation?

Priority is to harmonise definitions and methodologies between organisations dealing with energy statistics and energy matters

Thus, initiatives such as JODI or InterEnerStat

This does not mean that there is no room for harmonising with This does not mean that there is no room for harmonising with other sectors of activities (the cooperation with IPCC or CO2 other sectors of activities (the cooperation with IPCC or CO2 emissions from fuel combustion is a good example of such emissions from fuel combustion is a good example of such harmonisation)harmonisation)

However, this should be done in the full respect of the priority However, this should be done in the full respect of the priority mission of energy statistics which is to offer energy analysts mission of energy statistics which is to offer energy analysts and policy makers all the necessary information to conduct their and policy makers all the necessary information to conduct their analyses and launch their policiesanalyses and launch their policies

It is our sincere hope that InterEnerStat will contribute to It is our sincere hope that InterEnerStat will contribute to harmonising definitions (and methodologies) between energy harmonising definitions (and methodologies) between energy organisations which could then be used for building interfaces organisations which could then be used for building interfaces and bridges with other sectors in the respect of each other’s and bridges with other sectors in the respect of each other’s interest and missioninterest and mission Thank youThank you