International Energy Agency (IEA) has invited India, the world's third-largest energy consumer, to become its full-time member - a proposal if accepted will require New Delhi to raise strategic oil reserves to 90 days requirement.
Context
International Energy Agency (IEA) has invited India, the world's third-largest energy consumer, to become its full-time member - a proposal if accepted will require New Delhi to raise strategic oil reserves to 90 days requirement.
Implication
- Countries that want to become members of the IEA must also be members of the OECD and hold 90 days of oil importation as commercial stocks.
- The proposal, if approved, will require India to increase oil shares within 90 days.
- Current strategic oil reserves equal to 9.5 days of its need.
About the International Energy Agency
- The International Energy Agency is an autonomous Intergovernmental Organisation.
- The IEA was established in 1974 by developed countries - under the auspices of the Organization for Economic Co-operation and Development (OECD) - in response to the oil embargo.
- IEA is made up of 30 member countries and eight associate nations. Four countries are seeking accession to full membership - Chile, Colombia, Israel and Lithuania.
- India became an Associate member of IEA in March 2017 but it was in engagement with IEA long before its association with the organization.
- The World Energy Outlook report is released by the IEA annually.
- Its purpose is guided by four main areas of focus:
- Energy security
- Economic development
- Environmental awareness
- Global engagement
Roles and responsibilities
- It was founded in the wake of the 1973-1974 oil crisis to help its members respond to the massive disruption of the oil supply, a role that continues to be fulfilled today.
- The IEA mandate has expanded over time to include monitoring and analyzing global energy trends, promoting sound energy policy, and promoting international technology cooperation.
