The International Energy Agency (IEA) recently said the "explosive growth" in Indian oil product consumption may be coming to an end.
About International Energy Agency (IEA)
- IEA is an international intergovernmental organization based in Paris that was established in 1974.
- Its stated mandate is to maintain the stability of the international oil supply.
- IEA’s mandate has expanded over time to include tracking and analyzing global key energy trends, promoting sound energy policy, and fostering multinational energy technology cooperation.
- It was created in response to the 1973-1974 oil crisis, when an oil embargo by major producers pushed prices to historic levels and exposed the vulnerability of industrialized countries to dependency on oil imports.
- The IEA operates within the broader framework of the Organization for Economic Co-Operation and Development (OECD).
- Members: It consists of 31 member countries and eleven association countries.
- Criteria for membership: A candidate country for the IEA must be a member country of the OECD. In addition, it must demonstrate several requirements. These are:
- Crude oil and/or product reserves are equivalent to 90 days of the previous year’s net imports, to which the government has immediate access (even if it does not own them directly) and could be used to address disruptions to global oil supply.
- A demand restraint programme to reduce national oil consumption by up to 10%.
- Legislation and organisation to operate the Coordinated Emergency Response Measures (CERM) on a national basis.
- Legislation and measures to ensure that all oil companies under its jurisdiction report information upon request.
- Measures are in place to ensure the capability of contributing its share of an IEA collective action.
- India joined this organization in 2017 as an Associate member.
- Report published by IEA: World Energy Outlook
Q1) What is the Organization for Economic Co-Operation and Development (OECD)?
It is an international organization of 38 countries committed to democracy and the market economy. OECD members are typically democratic countries that support free-market economies. The stated goal of the OECD is to shape policies that foster prosperity, equality, opportunity and well-being for all.The organization also seeks to eliminate bribery and other financial crime worldwide. The OECD maintains a so-called "black list" of nations that are considered uncooperative tax havens.