What is The EIA (Energy Information Administration)?
Welcome to the Investors Trading Academy talking
glossary of financial terms and events. Our word of the day is “EIA”
EIA is the abbreviation for the Energy Information Administration. The government agency formed
in 1977 as an advisor to the U.S. Department of Energy. The EIA is responsible for objectively
collecting energy data, conducting analysis and making forecasts. EIA’s reports contain
information regarding important energy-related factors, such as future energy inventories,
demand and prices. Its data, analysis and reports are available online to both members
of the public and the private sector. One of the most renowned reports published
by the EIA is called This Week In Petroleum. This report is released every Wednesday and
contains commentary regarding changes in inventory, demand and other data for crude oil and other
petroleum products such as gasoline, distillates and propane. Usually, when this report shows
unexpected inventory changes in crude oil and gasoline, it causes a ripple effect across
the market, increasing or decreasing what consumers pay at the gas pumps.
The Department of Energy Organization Act of 1977 established EIA as the primary federal
government authority on energy statistics and analysis, building upon systems and organizations
first established in 1974, following the oil market disruption of 1973. The EIA conducts
a comprehensive data collection program that covers the full spectrum of energy sources,
end uses, and energy flows; generates short- and long-term domestic and international energy
projections; and performs informative energy analyses.
The EIA disseminates its data products, analyses, reports, and services to customers and stakeholders
primarily through its website and the customer contact center. Located in Washington, D.C.,
the EIA had about 370 federal employees and a budget of $117 million in fiscal year 2015.