Incoming OECD Secretary General Ángel Gurría visits IEA

On Wednesday, 18 January, the future Secretary General of the OECD, Hon. Angel Gurría of Mexico, visited the IEA. Mr. Mandil introduced Mr. Gurría at a reception attended by all IEA staff and welcomed him, underscoring the importance of a positive, cooperative working relationship with the OECD. Mr. Gurría expressed strong interest in energy issues and praised the IEA for its effective emergency response action in September 2005 which offset the supply disruption caused by Hurricane Katrina. After the reception, Mr. Gurría met with IEA Directors and was briefed on current work and priorities. Mr. Gurría will assume the position of OECD Secretary General in June 2006, replacing SG Donald Johnston.

IEA contributing to EC energy security efforts

While attending the World Economic Forum in Davos on 26 January, IEA Executive Director Claude Mandil met with European Commissioner for Energy Andris Piebalgs. Their meeting followed up on IEA Deputy Executive Director William Ramsay’s visit to Brussels the previous week in which Mr. Piebalgs proposed closer EC-IEA cooperation on harmonisation of emergency stock holding practices and the EC initiative to develop an “energy data observatory.” On the stock issue, the EC has hired external consultants to help design a credible system for holding natural gas stocks across the EU. The observatory effort is meant to improve transparency and reliability of energy data and would focus on investment and price levels within the EU. The EC and IEA have agreed to identify further areas for complementary work and co-ordination.

Photo from World Economic Forum Discussion at Davos...
Speech by Mr. Mandil in Davos...

Press Quotes of the Month

Executive Director Claude Mandil told Dow Jones on 9 February 2006 that he welcomed any initiative to prompt Russia to ratify the Energy Charter Treaty, creating a legal framework for the energy sector.

On 31 January 2006, Deputy Executive Director William Ramsay told Dow Jones that if Iran stopped exporting oil for any reason, strategic crude stocks held by member nations of the IEA could easily make up the shortfall. "Iran doesn't put that much on the market," he said. "Strategic stocks could make up for about a year of Iran's output."

Russian President Vladimir Putin, responding to critics that allege Moscow's record on democracy calls into question its G8 membership, said "I know the mood of the leaders of the G8. No one is against our active participation in this club. No one wants the G8 to turn into a gathering of fat cats."
(Reuters, 31 January 2006)

February and March

Delhi Sustainable Development Summit (India - Mandil)

2-4 February

UNEP Global Ministerial Environment Forum (Dubai)

7-9 February

Moscow Experts Meeting (Russia - Ramsay)

9-10 February

Release of IEA Oil Market Report (Paris)

10 February

Release of Renewable Energy RD&D Priorities (Paris)

14 February

4th Asian Gas Partnership Summit (India – Ramsay)

20-21 February

3rd National Conference on Energy & Environment (Italy – Ramsay)

23 February

CERT Meeting (Paris)

28 February -1 March

World Bank Energy Week (USA – Mandil)

6-7 March

OPEC Meeting (Vienna)

8 March

CNMC Meeting (Paris)

8-9 March

Modeling Development for the IEA Transport Sector Analysis (Paris)

10 March

Launch of Belgian In-Depth Review (Belgium – Mandil)

10 March

Release of IEA Oil Market Report (Paris)

14 March

G8 Energy Ministers Meeting (Moscow)

15-16 March

SOM/SEQ Meetings (Paris)

20-21 March

Governing Board Meeting (Paris)

22-23 March

SLT Meeting (Paris)

23-24 March

Release of Slovak Republic Energy Policy Review (Slovak Republic – Mandil)

27 March

Revised 2006 Governing Board Dates

As agreed in December, the governing board will reduce the number of times it meets in 2006. The new meeting dates are:

22-23 March (Paris)

18-19 October (Paris)

13 -14 June (Paris)

12-13-14 December
(exact dates and venue to be advised).

OMR dated 10 February 2006 - Latest developments

Crude futures prices rose in January, driven higher by market concerns both over real and potential supply disruptions. NYMEX WTI averaged $65.54/bbl in January, up 9.3% from December. A number of weather related supply disruptions (estimated at some 450 kb/d) lent support to prices.

Frigid temperatures curbed Russian output by 170 kb/d, closed ports and bolstered demand. Australian output was restricted by Cyclones Clare and Daryl, while poor weather conditions and logistical issues slowed Iraqi exports. Physical supply disruption concerns were compounded by tensions over Iran’s nuclear programme during January and NYMEX WTI hit a high of $68.35/bbl at close on 30 January.

Prices swayed between headline news and improving inventory data, the front month WTI contract closed down to $62.55/bbl on 8 February after the release of US weekly statistics showing strong inventory guilds in gasoline. World oil demand is forecast to grow in 2006 1.8 mb/d or up 2.1% from 2005 to reach 85.1 mb/d. Chinese oil demand is expected to resume strong growth in 2006, rising 5.8% and growth in US oil demand is expected to gather pace in the second half of the year.

While increases in production capacity in OPEC countries are estimated to add net 0.5 mb/d by mid-year, world spare capacity is still expected to remain tight. Non-OPEC supply is forecast to increase to 51.45 mb/d in 2006, up from 50.15 mb/d in 2005. OPEC crude supply in January fell from December on weak Iraqi exports and curtailed Nigerian supply due ethnic unrest.

Oil Market update....

OPEC representatives met in Vienna on 31 January 2006 and decided to maintain the group's oil production at the existing level of 28.0 mb/d.

OPEC Press release...

Gas Security: An Increasing Concern

The standoff between Russia and Ukraine early last month heightened concerns over Europe's dependence on one dominant supplier. Subsequent icy winter weather in Russia and pipeline explosions in Georgia further demonstrated the vulnerability of gas to supply disruptions. How important are Russian gas supplies? What is the magnitude of dependence on Gazprom?

Click here for answers to these questions and a chronology of recent events...

Reflecting Ministerial Priorities

How has focus shifted to follow up on Ministers' commitment to a "clean, clever and competitive energy future" as agreed at the 2005 Ministerial? The Secretariat has prepared a brief summary showing some of the work (but not all) that follows up on Ministerial priorities.

Read more here...

Brief Summary:

Renewable energy technologies must play an important role in meeting future sustainable energy needs and fulfilling global energy security, economic development and environmental goals. However, research, development and demonstration (RD&D) investment in renewable energy technologies has declined over the past 18 years. Furthermore, although market deployment funding has increased, the market share of renewables has decreased. Energy supply from technologies that were close to being competitive in the early 1970s, such as hydropower, biomass combustion and geothermal, has not subsequently grown at the same rate as the total primary energy supply. To reverse this trend and ensure development of competitive, clean, reliable renewable energy technologies, countries must improve their market deployment strategies and increase RD&D. This publication recommends priorities for this important effort.

Press release...
Other upcoming publications ...

Did you know that the IEA website can tell you what your country's annual energy demand is - and compare it to other IEA members? You can find all energy indicators at a glance by clicking on the map.

View it here...

GB Representatives

Energy Advisors

IEA Staff

Mr. Bob Pegler
(Australia)

Mr. Inho Lee
(Korea)

Ms. Dunia Chalabi, Expert on Middle East
Mr. Doug Cooke, Electricity Markets Expert
Ms. Sylvie Cornot, Gas Markets Expert
Ms. Angela Costrini, Web Developer
Mr. James Haywood, Special Advisor to the Deputy Executive Director
Mr. Guiseppe Sangiovanni, Energy Analyst
Ms. Maria Storeng, Research Assistant

GB Representatives

Energy Advisors

IEA Staff

Mrs. Marie-Pierre Fauconnier (Belgium)
Amb. Steffen Smidt (Denmark)
Amb. Xavier Darcos (France)
Dr. Andreas Schuseil (Germany)
Mrs. Sara White
(Ireland)
Mr. Mattias Ruete
(EC)

Mr. Manual Lopez Ruiz (Spain)
Mr. Murat Yavuz Ates (Turkey)
Mr. James McCracken (US)
Ms Vasiliki (Vanessa) Manavi (Greece)

Mr. Helmer Horlings, Gas Markets Expert
Mr. Armel le Jeune, Statistician
Ms Sierra Peterson, Energy Efficiency Researcher
Ms. Philippine de T'Serclaes, Policy Analyst
Ms. Maria Sicilia Salvadores, Special Advisor to the Deputy Executive Director
Ms. Debra Justus, Senior Energy Technology Policy Analyst
Mr. Paul Tepes, Statistician
Mr. François Nguyen, Electricity Markets Expert

This newsletter should evolve to address the interests and concerns of IEA Member countries. What do you want to hear from us? What is useful?

Please send emails to Rebecca.Gaghen@iea.org or call +33 1 40 57 65 54 and ask for the PIO, Rebecca Gaghen.