Sound Energy Governance: A New Era of Oil Transparency

The World Lives in a Fog of Oil Uncertainty

* Public company oil and gas supplly data has accuracy error of +/-2 to 4%.

* No data exists on any region’s decline rate of production.

* OPEC member countries do not trust OPEC’s numbers
– Tanker traffic gurus have more credibility than OPEC
– OPEC members mistrust everyone’s data

* Oil analysts only have “opinions” to analyze.

* “TRUST ME” was fine when it did not matter.

* It matters now and the time for reform is NOW.

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A Change in Oil Market Transparency Must Occur

* Once stakeholders understand the current “fog”, change has to occur.

* Status quo is as unacceptable as banning any further annual report audits.

* There are scores of ways to bring about changes:
– Some are simple.
– Some are extremely complex.
– Some take years to implement.
– Some are fast.

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Why Now? Who Cares? Why Me?

Why now?
* Oil demand has become a runaway train.
* Too much oil supply is now in decline.
* Excess capacity has disappeared.
* We are flying blind.

Who cares?
* Every stakeholder *should care*.
* All significant suppliers improve supply reliability through data reform.

Why me?
* Only unreliable oil suppliers ought to hide or stonewall this reform.
* All solid suppliers should applaud reform.

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