[Federal Register: February 12, 2003 (Volume 68, Number 29)]
[Notices]
[Page 7111-7112]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12fe03-31]
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DEPARTMENT OF ENERGY
Energy Information Administration
Policy Statement: Energy Information Administration Policy for
Release of the Weekly Petroleum Status Report
AGENCY: Energy Information Administration (EIA), Department of Energy
(DOE).
ACTION: Policy Statement. Energy Information Administration Policy for
Release of the Weekly Petroleum Status Report.
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SUMMARY: The comments received represent a cross section of key
interested parties that use the Weekly Petroleum Status Report (WPSR).
There was strong support and opinions both for leaving the release time
as it currently is and for moving the time to coincide with New York
Mercantile Exchange (NYMEX) trading hours. Reasonable arguments were
made on both sides of the issue. After careful review of the comments,
the Energy Information Administration (EIA) has concluded that it is in
the overall best interest of WPSR users to change the release time to
10:30 a.m. Eastern Standard Time (EST) on Wednesday.
EIA found the arguments for moving the release time compelling
enough to shift its current policy. The leading arguments supporting
this decision are summarized as follows: (1) It supports fairness,
transparency, and market oversight functions by releasing the WPSR at a
time when both European and United States markets are open, (2) it is
expected to contribute to reduced market volatility by releasing the
data when more traders are operating.
DATES: This policy becomes effective on Wednesday, February 26, 2003.
ADDRESSES: Requests should be directed to Ronald W. O'Neill. Mr.
O'Neill may be contacted by telephone (202-586-2991), FAX (202-586-
5846), or e-mail (ron.oneill@eia.doe.gov). These methods are
recommended to expedite contact. His mailing address is Ronald W.
O'Neill, M.S. EI-42, Forrestal Building, U.S. Department of Energy,
Washington, DC 20585-0640.
FOR FURTHER INFORMATION CONTACT: Requests for additional information or
questions about the policy should be
[[Page 7112]]
directed to Ronald W. O'Neill at the address above. The WPSR is
available on EIA's Internet site at http://www.eia.doe.gov/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/wpsr.html
.
SUPPLEMENTARY INFORMATION:
I. Background
II. Summary of Comments
III. Current Actions
I. Background
The Federal Energy Administration Act of 1974 (Pub. L. 93-275, 15
U.S.C. 761 et seq.) and the DOE Organization Act (Pub. L. 95-91, 42
U.S.C. 7101 et seq.) requires that EIA carry out a centralized,
comprehensive, and unified energy information program. This program
collects, evaluates, assembles, analyzes, and disseminates information
on energy resource reserves, production, demand, technology, and
related economic and statistical information. This information is used
to assess the adequacy of energy resources to meet near and long term
domestic demands.
EIA provides the public and other Federal agencies with
opportunities to comment on collections of energy information conducted
by EIA. As appropriate, EIA also requests comments on important issues
relevant to EIA's dissemination of energy information. Comments
received help EIA when preparing information collections and
information products necessary to EIA's mission.
EIA's Weekly Petroleum Status Report (WPSR) provides timely
information on supply and selected prices of crude oil and principal
petroleum products. It serves the industry, the press, planners,
policymakers, consumers, analysts, and State and local governments with
a ready, reliable source of current information.
The WPSR data are based primarily on weekly company submissions of
information as of 7 am Eastern Standard Time (EST) Friday. Weekly data
are filed with EIA by 5 pm EST on the following Monday. In the past,
the WPSR data were publicly released electronically at 9 am EST each
Wednesday, and the printed version was available on Friday. For weeks
that included holidays, release of the WPSR was typically delayed by
one day.
On December 3, 2002, EIA issued a Federal Register notice (67 FR
71959) requesting public comments on a proposed policy for changes in
the release time of the WPSR. In that notice, EIA discussed the reasons
for the proposed change and proposed moving the release time to 10:10
am EST on Wednesday to coincide with normal New York Mercantile
Exchange (NYMEX) and International Petroleum Exchange (IPE) trading
hours. EIA also solicited suggestions for alternative release times.
II. Summary of Comments
In response to the Federal Register notice requesting comments on
the proposed WPSR release time policy, EIA received 26 comments. The
comments were from members of Congress, investment companies, state
governments, and traders.
Comments fell into one of two categories: Either they were in favor
of moving the release time or they favored keeping it at 9 am EST.
Below is a brief summary of the major reasons given for supporting each
category.
Comments in favor of the current release time included:
[sbull] Having the petroleum data available before the NYMEX opens
allows the trading community to make qualified evaluations of the oil
market before trading begins.
[sbull] For some in the non-commodities trading community receiving
the data earlier gives them more timely information for their use.
Comments in favor of changing the release time included:
[sbull] Releasing the data when both the European and United States
markets are open enhances fairness, efficiency, and competition by
allowing a greater number of market participants equal trading access.
It essentially levels the playing field.
[sbull] Releasing the EIA petroleum data while both markets are
open will contribute to reduced market volatility and greater
transparency. Releasing the data while more trading opportunities exist
and more traders are operating reduces the likelihood that a small
number of traders could create volatile price swings. Markets with
greater liquidity are less likely to be manipulated.
[sbull] With current market turbulence, never has the need for
market competition and transparency been greater. Important functions
of market oversight by the Commodity Futures Trading Commission (CFTC)
would be diminished if much of the business was shifted to overseas
markets or the less regulated Over-the-Counter (OTC) markets.
[sbull] Maintaining the current release time could have the
unintended effect of shifting important price discovery and risk
management functions to an overseas market. The domestic market is made
less relevant, and its benefits to consumers and the economy reduced,
because businesses will be forced to utilize markets open at the time,
thus depriving them of an important competitive choice.
III. Current Actions
EIA WPSR Release Time Policy. EIA has established a policy for the
release time of the WPSR. Under this policy, the WPSR will be publicly
released electronically at 10:30 am EST each Wednesday. For weeks that
include holidays, release of the WPSR will typically be delayed by one
day.
EIA reserves the right to revisit or amend this policy. However,
EIA shall not modify the WPSR release time policy without prior
notification in the WPSR or the Federal Register.
Statutory Authority: Section 52 of the Federal Energy
Administration Act (Pub. L. 93-275, 15 U.S.C. 790a).
Issued in Washington, DC, February 6, 2003.
Guy F. Caruso,
Administrator, Energy Information Administration.
[FR Doc. 03-3480 Filed 2-11-03; 8:45 am]
BILLING CODE 6450-01-P