A client recently asked us why the Organisation of the Petroleum Producing Countries (Opec) also does publish production data from secondary sources besides its own data. The answer is simple!
Opec does so to provide a more comprehensive picture of global oil production, especially in cases where direct reporting by member countries is limited, delayed, or not clear.
Secondary sources serve as an alternative method of data collection. They help verify and supplement the figures reported by member countries.
And where direct reporting is unavailable, the Opec Secretariat relies on estimates generated by these “secondary sources.”
Historically, when governments either considered production data confidential or published unreliable figures, Opec turned to a select group of independent organizations. These included:
– IHS Markit
– Argus Media
– S&P Global Platts
– Energy Intelligence Group
– International Energy Agency (IEA)
– U.S. Energy Information Administration (EIA)
Although Opec always clarified that such figures came from secondary sources, its production data was often mistaken for primary reporting.
Some analysts even suggest that Opec’s so-called primary data today may, at times, be an average of secondary figures, since collection methodologies across organizations are similar; just a mix of confidentiality with market intelligence.
However, there have been changes in recent years.
In March 2022, Opec+ voted to stop using production data from the IEA amidst ongoing disputes with the agency over future oil demand and supply outlooks.
More recently, in February 2024, the oil bloc also dropped Rystad Energy and the EIA from its secondary sources list, opting instead for Kpler, OilX, and ESAI to assess crude oil production and member compliance.
Although Opec+ members are increasingly consistent in reporting their own production volumes, secondary sources still help cross-check and validate production data.