Energy
From The Report: Trinidad & Tobago 2016
View in Online Reader

For the past four decades the energy sector has been the backbone of Trinidad and Tobago’s economy. On average, the industry’s contribution to national GDP has been around 40%, although this has ranged from a high of 50.8% in 2008 to a low of 32.1% in 2015. In the fourth quarter of 2015 GDP was down 3% year-on-year, reflecting a 5% contraction in the energy sector. In addition to lower prices, the sector was affected by dwindling output from mature oil fields and plant shutdowns for maintenance and infrastructure work. Results in the downstream sector were more mixed. LNG output fell in the second half of 2015, although refinery output increased after the completion of upgrades at the state-owned Petrotrin plant, and ammonia and urea production was up from a relatively low base in 2014.

This chapter contains interviews with Andrew Jupiter, Chairman, Petrotrin; Norman Christie, Regional President, BP Trinidad and Tobago; and Gerry Brooks, Chairman, National Gas Company of Trinidad and Tobago (NGC).

Articles from this Chapter

Overview

A new formula: With a recently elected government promising reforms, observers are optimistic that the country can adapt to a new marketplace
OBG
plus

In light of the fall in global oil prices, the government of Trinidad and Tobago has proposed a series of ambitious reforms. Keith Rowley, the recently elected prime minister, has raised the possibility of amending the tax code to better reflect the current state of the energy sector. The move has been lauded by oil executives, who believe these changes can make the sector more competitive. In another encouraging sign, oil and gas players are moving forward with several major projects. The prime…

Interview

A boost from independents: OBG talks to Andrew Jupiter, Chairman, Petrotrin
OBG
plus

Interview:Andrew Jupiter To what extent is the decrease in T&T’s oil and gas production linked to the decline in commodity prices being observed currently? ANDREW JUPITER: Lower commodity prices have negatively affected the oil industry in T&T. There has been a reduction both in drilling and workover activity, and as a result all the companies involved in production have registered a decline in output. From a high of 238,000 barrels per day (bpd) in 1978, the country’s production…

Analysis

Staying the course: Large oil and gas companies continue to develop major projects, despite an uncertain business climate
OBG
plus

The financial squeeze that has been caused by lower oil and gas prices, together with doubts over the commercial viability of some new projects, has led to pressure on overall levels of exploration activity in Trinidad and Tobago. However, there has not been as sharp a reduction as was experienced during the global financial crisis of 2008. In 2009 both the number of rig days and depth drilled – two indicators of exploration levels – were down by just over 70% compared to the previous year.…

Interview

Maintaining the pipeline: OBG talks to Norman Christie, Regional President, BP Trinidad and Tobago
OBG
plus

Interview:Norman Christie How elastic is T&T’s gas production with respect to sudden changes in prices? NORMAN CHRISTIE: Gas production is relatively inelastic, largely because of the length of investment cycles. We can make marginal investments in our rig programmes, which will have a short-term impact on production, but output is mostly driven by long-term investment made in particular fields. These continue producing at relatively low prices, and in 2016 we are investing at a level…

Interview

Exploratory investments: OBG talks to Gerry Brooks, Chairman, The National Gas Company of Trinidad and Tobago (NGC)
OBG
plus

Interview: Gerry Brooks How is the Natural Gas Master Plan 2014-24 significant for the future of T&T’s energy sector? GERRY BROOKS: In the context of a rapidly changing global energy landscape, domestic gas production shortfalls and major upstream and downstream agreements due for renewal in the next three years, the emergence of the master plan is timely. The plan takes a fresh look at the trend lines around domestic gas availability, allocation between local consumption and exports, netbacks…

Analysis

Master plans: A government-commissioned strategic plan will focus the industry’s long-term goals
OBG
plus

Various factors influence the upstream natural gas investment cycle. One of the most important of these factors is that once an investment project is given a green light it can take anywhere from between three and five years for gas production to begin. Therefore, companies need to calculate the future commercial viability of a project on the basis of a variety of assumptions about future levels of demand, gas prices, taxation and capital allowances, among other factors. Although the geology of different…

Analysis

Work in progress: The Juniper project is a crucial endeavour for the oil and gas industry, and will help alleviate the natural gas supply deficit
OBG
plus

BP Trinidad and Tobago (BPTT) is developing Juniper, a major offshore natural gas project off the south-east coast of Trinidad. Juniper is significant in many different respects. For T&T the project is vitally important; it promises to help close the natural gas supply deficit that has affected the downstream and liquified natural gas (LNG) processing industry for the last four years. It is also critical that such a large project – total cost is estimated at $2.1bn – is being developed at…

Analysis

Striking a balance: Several profitable downstream operators are looking to grow and expand their projects on the islands
OBG
plus

Trinidad and Tobago’s energy industry stretches across a range of upstream, midstream and downstream activities, including on- and offshore oil and gas exploration and production; oil and gas processing and refining, which produces petrol and other fuels; liquefied natural gas (LNG) production and export; pipeline operation and distribution; and the production of various petrochemicals, including methanol, ammonia, propane, butane, urea, fertilisers, natural gasoline, compressed natural gas and…

Analysis

An alternate path: Easing the country off of fossil fuels will be difficult, but several plans aim to start to move the country in that direction
OBG
plus

Due to the country’s abundant low-cost hydrocarbons, Trinidad and Tobago has historically given a low priority to the development and use of alternative and renewable energy sources. That same high dependence on oil and gas has placed the country comparatively high up on global rankings in terms of greenhouse gas (GHG) emissions. According to a study by the University of T&T (UTT), in 2010 the country was the world’s second-highest per capita producer of GHG, after Qatar, and the second-highest…