London Group on Environmental and Economic Accounting Brussels, Belgium, 30 September 2008 Harmonisation of the Definitions of Flows and Products: The Contribution of the InterEnerStat Initiative Jean-Yves Garnier Head, Energy Statistics Division International Energy Agency © OECD/IEA, 2008 Why a need for harmonising definitions and strengthening cooperation Avoiding/reducing the differences between statistics published by various organisations Reducing Secretaria de Energía Mexico the reporting burden passed to countries UN Crude Oil Production for Mexico (in kbd) 1995 1996 1997 1998 © OECD/IEA, 2008 APEC IEA OLADE OPEC UN 2653 2741 2722 2618 2834 2903 2872 2969 2858 2977 3087 3062 3022 3022 3166 3134 3109 3070 3071 3210 The JODI Initiative: A first attempt to harmonise oil definitions and to strengthen cooperation CTY CTY CTY CTY CTY CTY CTY CTY CTY Joint questionnaire with harmonised definitions CTY CTY CTY CTY CTY CTY CTY CTY CTY © OECD/IEA, 2008 Start simple: one key to success JOINT APERC/EUROSTAT/OECD-IEA/ OLADE/OPEC/UN DATA EXERCISE A Simple Format (42 data points) Country: Month: Unit: Petroleum Products Crude Oil LPG Gasoline Kerosene Gas/Diesel Fuel Oil Total Oil Oil Month -1 and MonthRefinery -2 Output Production Imports Imports Exports Exports Stocks Closing Change Refinery Intake Stocks Choice of units left to organisations Closing Change Demand Simple Definitions © OECD/IEA, 2008 Harmonisation and Cooperation is a long Process Doha May 06 Riyadh Nov 05 Launch of the JODI Database Amst. May 04 Bali Oct 04 Cairo Oct 03 Mexico May 02 Riyadh Nov. 01 Bangkok Apr 01 Madrid July 00 Riyadh Nov 00 Paris Nov 00 © OECD/IEA, 2008 Vienna May 01 Vienna Oct 01 Luxem. Jan 02 Vienna Apr 02 Osaka Sep 02 Paris July 02 Vienna Jan 03 Paris Dec 03 Riyadh Jan 05 Paris Jul 05 Paris Nov 05 Luxem. Jan 06 N York May 06 Riyadh Nov 06 Vienna Sep 06 Vienna Jun 04 Amst. May 04 International Energy Forum Conferences Mexico May 02 JODI Conferences Paris Dec 03 Inter-Secretariat Working Group Meetings Paris Nov 07 Since the launch, the JODI database is updated every month Although still imperfect, the database has started to be used by analysts and oil companies © OECD/IEA, 2008 What has JODI changed How 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 On 19 November 2005, King Abdullah launched the JODI database live on internet 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 © OECD/IEA, 2008 A 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) An Inter Secretariat Working Group (InterEnerStat) © OECD/IEA, 2008 The 1st 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 their problems and their expectations for more co-operation To pave the way for more harmonisation and for strengthening bilateral and international co-operation © OECD/IEA, 2008 Two Clear Requests Harmonisation Methodologies Co-operation Definitions Raising political awareness Units Harmonisation Conversion factors Joint Questionnaires Harmonised demands and questionnaires Joint Training Handbooks and manuals Training Quality framework © OECD/IEA, 2008 Common manuals Joint quality assessment Exchange of data The first step was to collect from each organisation its own set of definitions UN FAO OAPEC EUROSTAT WORLD BANK OPEC 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 website © OECD/IEA, 2008 An overview of the InterEnerStat website © OECD/IEA, 2008 An overview of the InterEnerStat website © OECD/IEA, 2008 An overview of the InterEnerStat website © OECD/IEA, 2008 The 2nd InterEnerStat Workshop 19-20 November 2007, IEA, Paris Comments on the website Decision to hire an independent expert to look at flows and products definitions and propose “compromise” definitions Other actions © OECD/IEA, 2008 Current 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 Sample of proposed compromised definitions Oil A 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 Oil Crude 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 Feedstock A 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/Oxygenates Additives 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 Biofuels Liquid 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. © OECD/IEA, 2008 Cooperation and harmonisation are progressing much more than one could think The Website In fact, a lot of work took place in each organisation and between organisations Harmonisation Manuals Statistics Law Training Dissemination © ©OECD/IEA, OECD/IEA,2008 2008 Manuals Organisations can work together on joint manuals, e.g. the IEA/OECD/Eurostat Manual English French German Spanish Russian Chinese © OECD/IEA, 2008 Turkish Manuals © OECD/IEA, 2008 The JODI Manual is another example of harmonisation and cooperation Organisations can work together on joint training sessions, e.g. the JODI training programme 3rd JODI Training -----23-26 10/07 -----IEFS IEA OPEC UNSD IMF Caspian Sea 4thJODI Training -----09/08 -----IEFS APEC IEA Algiers Caracas Bangkok 1st JODI Training -----14-19/08/06 -----OLADE IEFS IEA OPEC UNSD IMF © OECD/IEA, 2008 Johannesburg 2nd JODI Training -----29/01-2/02/07 -----IEFS Eurostat IEA OPEC IMF The ultimate goal would be to have one questionnaire common to all countries and organisations UN EUROSTAT FAO OAPEC ? WORLD BANK OPEC Dream or reality? © OECD/IEA, 2008 Harmonisation passes by an agreement on key points Term to be harmonised Comments Definitions Not so easy – eg:crude oil production Units Easy in principle – conversion factors Questionnaires Related to definitions but also to level of detail Methodology Depending on convention adopted e.g. TPES vs. TPER Processing Who processes what (e.g. Mexico: APEC, OECD, OLADE, UNSD) Quality checks/standards Essential for sake of comparability/level of confidence Dissemination Should be easy… when all the other points have been agreed © OECD/IEA, 2008 The primary purpose of energy statistics is to support the work of energy policy makers: the example of the IEA US$/bl 80 Therefore, definitions of energy flows and products 70 are specific to energy analysts and policy makers 60 50 40 30 20 10 Production Imports/Exports Stocks End-Use Socio-Economic Production Consumption Transformation Diversity (gas, coal, electricity) Security of supply Security Security of demand Price Dependency Oil prices at $37/bl Efficiency Efficiency Efficiency Emissions Energy intensity vs energy efficiency Stocks (levels, changes) Establishment of the IEA Prices escalating Imports and exports (definition varies from fuel to Kyoto Protocol fuel) Rio Summit 2nd Oil Crisis 1st Oil Crisis © OECD/IEA, 2008 20 07 20 05 20 03 20 01 19 99 19 97 19 95 19 93 19 91 19 89 19 87 19 85 19 83 19 81 19 79 19 77 19 75 19 73 19 71 0 Most of the services in charge of energy statistics are not the national statistics offices Example of the IEA Observatoire de l’Energie for France Energy Information Administration for US METI for Japan Only a few countries have appointed their statistics offices as data providers The same applies to other organisations OLADE for Latin America APEC for Asia-Pacific OPEC for oil exporting countries © OECD/IEA, 2008 What does this mean in terms of priority and 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 other sectors of activities (the cooperation with IPCC or CO2 emissions from fuel combustion is a good example of such harmonisation) However, this should be done in the full respect of the priority mission of energy statistics which is to offer energy analysts and policy makers all the necessary information to conduct their analyses and launch their policies It is our sincere hope that InterEnerStat will contribute to harmonising definitions (and methodologies) between energy organisations which could then be used for building interfaces and bridges with other sectors in the respect of each other’s interest and mission © OECD/IEA, 2008 Thank you