North American Oil & Gas commodity data – How does WoodMac compare to EIA?

Today’s global commodity markets are in constant flux, with prices affected by shifting demand, transforming supply chains, changing policy, energy security concerns and constantly evolving geopolitical threats. In a volatile and fast-moving environment, access to prompt, accurate, reliable information is vital for both energy companies and traders. 

Currently, the US Energy Information Administration (EIA) provides market participants with a range of insights into supply and demand balances, including weekly reports detailing crude and fuel inventories across the country. However, workforce reductions at the agency could put these services at risk, with important implications for energy traders and producers. 

The importance of inventory/S&D reporting 

Ongoing volatility in commodities markets creates both risk and opportunity, but makes access to credible, up-to-the-minute data on supply and demand crucial for market participants. In a rapidly evolving environment, real-time visibility into infrastructure, trade flows and price signals has become critical. Traders rely heavily on these metrics to make their buying and selling decisions, while oil and gas producers also monitor them carefully to inform production decisions and maximise profitability.   

The globalised nature of oil – and increasingly gas – markets means that the physical state of supply and demand in a market like North America can have implications on other markets around the world. Sites such as Cushing, Oklahoma – the physical delivery point for West Texas Intermediate (WTI) oil – act as central hubs not just for the US market but for the oil industry worldwide.  

Inventory levels at Cushing – and other monitored US hubs – are therefore a key indicator of US crude supply and demand, influencing WTI prices and the wider global oil market (if you want to learn more about how Cushing crude inventory changes affected WTI prices in 2024, you can read our Cushing 2024: key price insights and market trends. 

Government statistics under threat 

According to Reuters, the EIA faces a significant reduction in staff numbers, with up to 40% of employees having accepted buyout offers from the Trump administration. The impact on data publication by the agency could be substantial, with one source telling Reuters "I can't envision how, over time, they'll continue" when asked about the future of weekly energy data releases. For market participants, this threat to the reliability and availability of official reporting is concerning. 

A credible alternative 

With the EIA’s ability to continue to provide high-quality data being called into question, alternative access to prompt, accurate and reliable oil and gas inventory/S&D reporting is more valuable than ever. Wood Mackenzie data has provided a credible alternative to EIA storage metrics since 2009.  

Wood Mackenzie’s US oil storage values represent measurements of physical tank volumes. They therefore provide a more accurate measure of inventory levels than weekly EIA values, which are based on company surveys rather than actual tank-level readings (the EIA uses measurements or meter readings only for its monthly survey). 

Wood Mackenzie-reported inventory reporting correlates strongly with EIA data for locations with a 1:1 coverage comparison (such as Cushing, OK with a .985 monthly change r2 and a .998 monthly total stocks correlation). Wood Mackenzie monitoring also provides additional granularity at key hubs that are not broken out in EIA inventory reporting (for both crude and refined products). For example, Wood Mackenzie measures tank/terminal-level product inventories for New York Harbor (NYH), which serves as the delivery point for NYMEX RBOB and ULSD. The chart below compares reported gasoline inventories for Wood Mackenzie NYH and EIA PADD 1B (a broader region which includes NYH). 

For gas, once again, the EIA reports survey data, leaving significant margin for error in the figures it provides. What’s more, much of the agency’s natural gas data set is incomplete with several years’ worth of major revisions occurring with the release of the Natural Gas Annual report. In contrast, Wood Mackenzie’s US gas supply and demand reporting relies on numerous data sets – including pipeline, power generation and state-level reported data – and is based on actualised pipeline flow volumes.  

Timely reporting 

Many traders already use Wood Mackenzie’s oil storage reports to get ahead of market shifts, since they are typically released one to two days before EIA’s storage numbers. As a result, our data has frequently contributed to upward or downward pressure on crude and refined product prices. Similarly, given the three-month delay in EIA reporting for gas, much of the market already uses Wood Mackenzie data to fill in the gaps when EIA data is unavailable. 

Find out more 

Our Commodity Trading Analytics provides real-time monitoring and advanced analytics for US oil and gas markets, providing the insights to identify opportunities and manage risk. Leverage data and advanced analytics from our proprietary monitoring network – combining live camera feeds, infrared, satellite imagery and power line measurements – combined with expert insights.  

Contact us via the form above to find out how you can get an edge and complete your market view with Wood Mackenzie’s solutions.