Hello again! I’m Jake Swart, and I am a Junior Broker at Daniels Trading. I’ve been interning at Daniels Trading for two summers and have been feverishly learning all there is to know about the futures market, especially the energy markets. You can read my first post here: https://www.danielstrading.com/getting-started/2016/07/25/exploring-energies-eia-introducing-jake-swart.
I will be discussing the purpose and background of the EIA. The EIA is the United States Energy Information Administration, and they’ve been around since 1977. The EIA came about after The Department of Energy Organization Act of 1977 was passed. From that moment on, they became the government’s primary source for energy information. They not only collect data on the energy use and energy supply, but they also take that data and put them into reports that help show where they predict energy prices are going both in the short term and the long term. The time frames for the different information and reports they put together range from daily, Today in Energy, all the way up to annual reports, which include Annual Energy Outlook, Natural Gas Annual, and six additional annual reports. These different reports and information sources are used by a wide array of people. They are utilized by federal and state agencies that are looking to put together energy policy and need to know exactly what is happening in the market to make sound, informed policy. The rest of the users, students, educators, businesses, and more don’t use this information to determine policy, but instead utilize this information to learn about the market movements and make an educated estimate of where the price is moving. If you’re looking for information on crude oil, petroleum, natural gas, and all other forms of energy, the EIA is where you would look. If you want to take a more in depth look at the EIA and their history or purpose, you can follow this link to learn more directly on their site: http://www.eia.gov/about/.
Stay tuned for the next post where I go over some of the EIA’s reports.
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