WHAT IS 'International Energy Agency (IEA)'

The IEA works to ensure reliable, affordable and clean energy for its member countries and beyond. Its main areas of focus are energy security, economic development, environmental awareness and engagement worldwide.

BREAKING DOWN 'International Energy Agency (IEA)'

The IEA is an autonomous body within the Organization for Economic Co-operation and Development, or OECD, framework. The governing board is the main decision-making body of the IEA, composed of energy ministers or their senior representatives from each member country. In addition, the IEA has several standing groups, committees and working parties made up of member country government officials, which meet several times a year. The IEA operates within the financial framework of the OECD. Also, countries and other energy stakeholders make voluntary contributions to support IEA programs. About a third of the IEA’s spending is financed by voluntary contributions, most of which are from government sources. It also receives funding from private sources and contributions in kind, especially staff on loan. The IEA is made up of 30 member countries. Before becoming a member country of the IEA, a candidate country must meet several criteria. It must have crude oil or product reserves 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. It must have in place a demand restraint program to reduce national oil consumption by up to 10 per cent. It must have a national plan in place for Coordinated Emergency Response Measures, or CERM. Also, all oil companies under its jurisdiction report information upon request. And it must be able to participate in any IEA collective actions.

IEA history

The IEA was organized in response to the 1973-1974 Middle East War crisis and its aftermath. The policy and institutional lessons of the crisis led to the establishment of the IEA in late 1974 with a broad mandate on energy security and energy policy cooperation among member countries. The main policy decisions and the agency framework were stipulated in in the IEA Agreement within the International Energy Program treaty. The IED is hosted at the OECD in Paris. It became focal point for energy cooperation on security of supply, long-term policy, information transparency, energy and the environment, research and development and international energy relations. The IEA has evolved and expanded and today provides statistics and analysis and examines the full spectrum of energy issues, advocating policy toward reliability, affordability and sustainability of energy.

  1. Internet of Energy - IoE

    The Internet of Energy (IoE) refers to the automation of electricity ...
  2. Energy Institute - EI

    The Energy Institute, based in London, England, was formed by ...
  3. Energy Improvement Mortgage

    An energy improvement mortgage allows borrowers to qualify for ...
  4. Country Risk

    Country risk is a term for a set of risks associated with investing ...
  5. American Clean Energy and Security ...

    The American Clean Energy and Security Act of 2009 attempted ...
  6. Energy Tax

    Energy tax is a fee on the use of fossil fuels such as oil, coal ...
Related Articles
  1. Investing

    Crude Oil Price Forecast: Watch IEA Oil Report

    This week's IEA monthly Oil Market Report for February means the supply side of the oil market is still very much in focus for traders.
  2. Investing

    China Is Winning The Renewable Energy Crown

    With exponentially rising energy demand facing Asia’s Dragon, China has gotten serious about expanding its generation capacity of renewable sources.
  3. Investing

    U.S. Oil Inventory Piles Up, Prices Decline

    As U.S. oil inventories continue to increase and no supply cut coming from other oil producing nations, the oil prices will remain pressurized.
  4. Investing

    Crude Oil Price Forecast: Data Is All the Rage

    Oil traders may look to this week's data from the IEA, EIA and OPEC for an idea of what to do next.
  5. Investing

    Energy Think-Tank Sees Oil Supply Pressures

    A short-term oil glut may see a nasty long-term reversal, according to the International Energy Agency.
  6. Investing

    Crude Oil Price Forecast: Demand Now in Focus

    The oil market awaits several monthly reports from energy market watchdogs and participants.
  7. Investing

    Analyzing the Future of Oil Prices: When Should You Invest? (BP, CVX)

    In January, oil bottomed out at less than half its price in June. What caused the plunge, and how should long-term investors assess the road ahead?
  8. Investing

    Crude Oil Price Forecast: The Trump Factor

    Trump spooked the oil market with his anti-OPEC tweet, but the effect could be irrelevant and short lived.
  9. Investing

    Global Energy: Exploring Revenue Trends & Fundamentals

    Examine global energy sector revenue data by country and region, and identify geographical trends and analyze forecasts related to energy consumption.
  10. Investing

    VDE: Vanguard Energy ETF

    Discover the type of investment strategy the Vanguard Energy ETF follows, and learn why it may be an appropriate addition to an investor's portfolio.
  1. What country spends the most on education?

    Learn about the amounts that various developed nations spend on educating their young people compared to education spending ... Read Answer >>
  2. What country spends the most on research and development?

    Discover which country spends the most on research and development, in both dollar terms and as a percentage of gross domestic ... Read Answer >>
  3. What economic indicators are most used when forecasting an exchange rate?

    Discover what economic indicators are most widely used to forecast a country’s exchange rate and how various factors influence ... Read Answer >>
  4. What does a Power Purchase Agreement (PPA) mean in the utilities sector?

    Read about the use of power purchase agreements, or PPAs, in the United States and their extensive influence in the public ... Read Answer >>
Trading Center