Who knew? The U.S. Energy Information Administration? Yes, Virginia there is such a thing - to learn more read this CRS report (9 September 2020): 'The U.S. Energy Information Administration' by Ashley J. Lawson, Mark Holt and Michael Ratner.
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Overview
The U.S. Energy Information Administration (EIA) is the lead federal agency for collecting, analyzing, and disseminating data on U.S. and world energy supply and consumption. EIA was established in 1977 by the Department of Energy Organization Act (P.L. 95-91), though other federal agencies had regularly collected energy-related information since at least the early 1900s.
A main driver for the creation of EIA was the energy crisis of the 1970s. At the time, many lawmakers felt a lack of federal energy data had contributed to the crisis and limited policymaking in response. EIA’s statutory authorities reflect many congressional concerns at the time. Congress authorized EIA with substantial political independence—the EIA Administrator does not need approval from any other DOE officer or employee for data collection, analysis, or projections. EIA must “promptly” disseminate to the public the energy information it collects, except for information deemed confidential or proprietary. Additionally, Congress authorized EIA to compel the submission of data from energy companies. In other words, reporting to EIA is mandatory.
EIA’s appropriation for FY2020 is $126.8 million, which includes $54.3 million for a staff of 359 full-time equivalent federal employees. EIA’s budget has varied substantially since its first year of operation in FY1978. As with the rest of DOE, the annual Energy and Water Development appropriations bill currently funds EIA.
One of EIA’s core functions is to collect “data and information which is relevant to energy resource reserves, energy production, demand, and technology, and related economic and statistical information” (42 U.S.C. §7135). EIA data collections span the energy system from supply and transport to consumption. All energy sources are included in EIA’s data and analysis products, though some (e.g., petroleum) are more detailed than others (e.g., renewables). EIA’s emphasis on petroleum data partly stems from the founding of the agency, when oil supply was a focus of national policy. EIA primarily collects domestic energy information, but it also aggregates and analyzes international energy information.
EIA publishes its data on its website by fuel or energy source: Petroleum & Other Liquids, Natural Gas, Electricity, Consumption & Efficiency, Coal, Renewables & Alternative Fuels, Nuclear & Uranium, and Total Energy. Time frames for data collection span a wide range: some data are collected hourly, while other data are collected every few years. EIA also provides mapping tools on its website that show the location of energy infrastructure. Some maps can display congressional district boundaries, providing a potentially useful tool for responding to constituent requests or informing policy decisions. Appendices to this report summarize EIA’s mapping tools and data collection surveys.
EIA also produces analysis and projections. EIA often draws a distinction between projections (i.e., estimates based on specified assumptions) and forecasts or predictions (i.e., best guesses about the future). Its flagship projection, the Annual Energy Outlook (AEO), is widely used among Members of Congress, industry, and other observers. The AEO provides an outlook for U.S. energy supply, demand, prices, certain air emissions, and other factors over a 25-30 year period, based on the laws and regulations in place at the time of publication. The International Energy Outlook (IEO), updated annually, projects global energy supply, demand, and prices over a 25-30 year period. These long-term projections include scenarios based on alternative assumptions. Scenarios provide information about the possible range of future energy supply and demand conditions, and they can help identify how sensitive the U.S. energy system might be to changes in certain factors such as fuel prices and potential policy changes. EIA also produces the Short-Term Energy Outlook (STEO), a monthly forecast of U.S. energy supply, demand, and prices over the next 12-24 months.
EIA’s projections have been criticized for not taking into account potential changes in laws and regulations. Some critics argue that this presents a misleading reference upon which many policy and investment decisions are made. Others argue EIA insufficiently accounts for policy or technology changes in its projections.
EIA also performs ad hoc analysis at the request of Congress. In the past, EIA has projected potential energy system outcomes for proposed energy policies (e.g., lifting the crude oil export ban), environmental policies (e.g., federal regulation of greenhouse gas emissions), and tax policies (e.g., extended production tax credits for wind generators). EIA’s projections have been used during congressional debate, alongside projections from other organizations. EIA has also produced a series of reports at the request of Congress estimating the value of federal energy subsidies.
Cutting to the chase...
Concluding Observations
Congress established EIA in the 1970s so that policymakers, regulators, and the public could have more transparency into U.S. energy system conditions. EIA continues to fulfill this role today. EIA can collect information through its statutory authority that private firms might not be able to collect on their own.
The current overall U.S. energy balance is very different than when EIA was established. At that time, the United States had a shortage of energy supply relative to its needs, but now the United States has a net surplus (or close to it).67 Congress could choose to evaluate the desired role of EIA given this different context. As the energy mix changes and a wider array of fuels are integrated, EIA might need expand its data collection and analysis to fully cover the U.S. energy sector. Expanding EIA’s coverage while maintaining its existing portfolio would likely require additional funding, especially to meet the depth required by the market.
EIA data have become essential for the functioning of U.S. energy markets, with some markets (e.g., the oil market) relying upon EIA data releases for price formation. The consolidation of industry data and the transparency of published data are important components of how market entities currently analyze the sector. The private sector uses EIA data to inform its analysis of different energy commodities. The nature of the energy sector is one of constant change, shifting priorities, new data and information, and varied analysis and interpretations. EIA must constantly evaluate changes for their short, medium, and long term effects and whether or not they require EIA to modify its collection of specific data and analytical reports.
Members of Congress may use EIA projections to inform their decisions. Members of Congress may also use information from other organizations, such as private firms, trade associations, and think tanks. Members of Congress could choose to evaluate EIA’s modelling capabilities, compared to other organizations, and determine whether EIA should make changes. Changes to EIA’s modelling capabilities could affect its annual appropriation requirement and raise other considerations.
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"True heroism serves the common good, or it is not really heroism at all." - Richard Rohr
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