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The Technical Committee of the OPEC+ group has dropped the International Energy Agency as a secondary source of member oil production data in favor of Norwegian consultancy Rystad and Wood Mackenzie.
This is according to a report by Reuters that spoke to an OPEC+ insider familiar with the group’s actions. The decision to switch from the IEA to Rystad and Wood Mackenzie was made after a thorough analysis, the source said.
Production data from secondary sources is essential for OPEC before and OPEC+ now to make sure all member countries of the production control agreement sealed at the start of the pandemic comply with requirements or at least don’t stray from them too much.
In addition to secondary sources, OPEC also reports primary source production data every month, with figures from member countries themselves.
The Reuters source did not detail the reason for the switch, but the report noted that some members of OPEC+ had expressed criticism of IEA data recently.
It’s not only data that bothers the oil producer group when it comes to the International Energy Agency, it seems. Based on recent media reports, some in OPEC+ are unhappy with the IEA’s attitude to oil supply control, with the energy minister of the UAE recently directly slamming the organization for pushing for more oil.
His Saudi counterpart, Abdulaziz bin Salman, last year went further, calling the IEA’s Roadmap to Net Zero “La La Land”, which eventually proved not incorrect since the IEA asked OPEC+ for more oil investment just months after saying that all new investments in oil and gas should end in 2021.
Bloomberg noted that the exchange of critical remarks between the two organizations has been going on for months now, suggesting the removal of the IEA as a secondary source of production data is the next step in the dance.
By Irina Slav for Oilprice.com
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Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.