International Energy Agency (IEA) is an organization whose members work together to lessen their dependence on imported oil by promoting energy conservation and the development of alternative energy sources. Over 25 nations belong to the IEA, which operates as an independent agency within the Organisation for Economic Co-operation and Development (OECD).
The United States, Canada, and several other members of the OECD established the IEA in 1974, following the Arab oil embargo of 1973. Several Arab countries had reduced their oil shipments to many Western nations, causing widespread energy shortages.
IEA member countries are required to maintain a certain amount of oil in reserve in case of emergency. The IEA works to promote cooperation among its members and has established a system for sharing oil among member nations during shortages. The agency gathers statistics on the international oil market and uses them to predict future needs. It also works to promote cooperation between oil-producing and oil-consuming countries. IEA headquarters are in Paris.
