© OECD/IEA, 2008 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 UN Secretaria de Energía Mexico 5% gap APEC IEA OLADE OPEC UN 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 strengthening cooperation

© OECD/IEA, 2008 CTY The JODI Initiative: A first attempt to harmonise oil definitions and to strengthen cooperation Joint questionnaire with harmonised definitions

© OECD/IEA, 2008 Country:Month: Unit: JOINT APERC/EUROSTAT/OECD-IEA/ OLADE/OPEC/UN DATA EXERCISE Start simple: one key to success Simple Definitions Month -1 and Month -2 Choice of units left to organisations 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 Vienna May 01 Vienna Oct 01 Riyadh Nov. 01 Mexico May 02 Luxem. Jan 02 Vienna Apr 02 Osaka Sep 02 Madrid July 00 Paris Nov 00 Bangkok Apr 01 Riyadh Nov 00 Vienna Jan 03 Paris July 02 Paris Dec 03 Vienna Jun 04 Paris Nov 05 Luxem. Jan 06 Vienna Sep 06 N York May 06 Riyadh Nov 06 Doha May 06 Riyadh Jan 05 Paris Jul 05 Riyadh Nov 05 Amst. May 04 Mexico May 02 Paris Dec 03 Cairo Oct 03 Bali Oct 04 Harmonisation and Cooperation is a long Process Paris Nov 07 Launch of the JODI Database

© OECD/IEA, 2008 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  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 Abdullah launched the JODI database live on internet

© OECD/IEA, 2008 A short background At the 36 th Session of the UN Statistical Commission, energy was in the spotlight of the Commission This led to the Ad-hoc Energy Group Meeting on 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 1 st InterEnerStat Workshop Date: 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 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 organisation its own set of definitions WORLD BANK FAO UN EUROSTAT OPEC OAPEC The 2 nd step was to assemble them in a transparent way easy to access Preparation of a joint website The 2 nd 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 Comments on the website Decision to hire an independent expert to look at flows and products definitions and propose “compromise” definitions Other actions The 2 nd InterEnerStat Workshop November 2007, IEA, Paris

© 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 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. Sample of proposed compromised definitions Proposal from the expert

© OECD/IEA, 2008 TheWebsite Cooperation and harmonisation are progressing much more than one could think © OECD/IEA, 2008 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 manuals, e.g. the IEA/OECD/Eurostat Manual SpanishRussianChinese EnglishFrenchGerman Turkish Manuals

© OECD/IEA, 2008 The JODI Manual is another example of harmonisation and cooperation Manuals

© OECD/IEA, 2008 Organisations can work together on joint training sessions, e.g. the JODI training programme 1 st JODI Training /08/ OLADE IEFS IEA OPEC UNSD IMF 1 st JODI Training /08/ OLADE IEFS IEA OPEC UNSD IMF 2 nd JODI Training /01-2/02/ IEFS Eurostat IEA OPEC IMF 2 nd JODI Training /01-2/02/ IEFS Eurostat IEA OPEC IMF Caracas Johannesburg Caspian Sea 3 rd JODI Training / IEFS IEA OPEC UNSD IMF 3 rd JODI Training / IEFS IEA OPEC UNSD IMF Algiers 4 th JODI Training / IEFS APEC IEA 4 th JODI Training / IEFS APEC IEA Bangkok

© OECD/IEA, 2008 The ultimate goal would be to have one questionnaire common to all countries and organisations WORLD BANK FAO UN EUROSTAT OPEC OAPEC ? Dream or reality?

© OECD/IEA, 2008 Term to be harmonisedComments Definitions Units Questionnaires Methodology Processing Quality checks/standards Dissemination Harmonisation passes by an 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 support the work of energy policy makers: the example of the IEA Diversity (gas, coal, electricity) Oil prices at $37/bl Emissions Rio Summit Kyoto Protocol Production Imports/Exports Stocks Consumption Transformation Establishment of the IEA Prices escalating End-Use Socio-Economic Production Efficiency 1 st Oil Crisis 2 nd 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 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 Thank you