GEORGETOWN, Guyana, CMC -Trinidad and Tobago Monday reiterated that Caribbean Community (CARICOM) energy economies will “not be irresponsible nor will we shy away from beneficial opportunities” in the oil and gas sector.
Addressing the opening of the four-day Guyana Energy Conference and Supply Chain Expo, Trinidad and Tobago’s Prime Minister, Dr. Keith Rowley, described the regional energy-producing countries, namely Guyana, Suriname, and Trinidad and Tobago, as “significant players in this market.
“The oil and gas industry will be a major source of energy for decades to come, during a protracted period of transition, even as we invest and expand the contribution of various renewables,” Rowley told the conference being held under the theme “Fueling Transformation and Modernization”‘
He said worldwide policymakers need to re-evaluate its central role in modern life and that with rising concerns for future demand and climate change, the industry finds itself in a delicate situation.
“Only by recognizing the true scope of these ongoing challenges and addressing their implications by offering leadership on solutions can the industry continue to prosper in an increasingly complex world.”
He said the global oil and gas sector has provided the energy required for significant developments in the worldwide economy.
“The industry is playing an important role in the energy transition by providing the affordable and reliable energy needed to fuel growth, producing this energy with decreasing emissions through carbon capture strategies, reduction in flaring and leaks to support a low carbon world.”
Rowley said that in pursuing energy security and resilience, the Caribbean region is no stranger to challenges.
“CARICOM countries, on average, import an estimated 87 percent of their oil, compared to a global average of 21 percent. This dependence has left the region vulnerable to energy market volatility, which affects crucial economic sectors.
“Collectively, we continue to echo the sentiments of sustained development through the availability of our resources. The recent oil and gas findings in Guyana and Suriname have demonstrated this availability.”
Rowley said that to ensure energy security for the region and combat the negative impacts of climate change, “we effectively utilize our resources, whether they be hydrocarbon or renewable, through collaborative efforts.”
He said only by working together can the regional countries attain the objective of fostering productive and resilient economies in what promises to be an increasingly hostile business environment.
“With the emergence of our region as a significant player in the hydrocarbon industry, we are presented with a valuable chance to utilize our combined knowledge and expertise to maximize prospects proactively. By ensuring our region fully capitalizes on its resources, including human and mechanical, we can guarantee the alignment of energy and industrial transformations with a collaborative economic strategy.”
However, Rowley said the successful implementation of these strategies must be accompanied by efficient and effective public management systems and integration into the local economy through shared infrastructure and value chains.
“To this end, we in the deep southern Caribbean are actively engaged in spawning a cargo ferry service which we are confident can grow into a major catalyst for welcomed regional collaboration, development, and diversification.”
He told the conference that Trinidad and Tobago’s National Development Strategy for 2016-2030, his administration signaled the government’s intention to transition towards a more diversified economy, which produces a broad spectrum of export competitive, high-value products and services.
“In this context, the government has developed a roadmap for Trinidad and Tobago to transform into a new economy and society. The recent opening of the ultra-modern Phoenix Park Industrial Estate is testimony to our efforts and intentions.”
Rowley said that the economic development of Trinidad and Tobago has been driven by the monetization of the country’s oil and gas resources and will continue into the foreseeable future.
He said the roadmap is a guide for transforming the economy of Trinidad and Tobago from being dependent on the oil and gas industry into one that generates revenues and foreign exchange from a broader range of sectors and a more comprehensive portfolio of products.
“These targeted new and increased investments will come from encouraging innovation, entrepreneurship, and diversification, inspiring new players in the market to venture into new businesses and projects such as manufacturing, food processing, insurance, finance, and logistics.
“Energy is at the heart of sustainable economic development. Transforming the energy system to meet the increasing energy demand while lowering global emissions will require a broad energy mix and unprecedented collaboration across all sectors and countries.
“Energy transformation is not just about providing carbon-free energy, but about prospering while on the journey to doing so. Producer economies may have to diversify their energy production as they seek to diversify their economies, putting energy transitions at the heart of their development strategies.”
Prime Minister Rowley said Port of Spain is taking concrete steps to diversify the country’s energy mix.
He said with a consortium of BP and Shell, “We are constructing a Solar Utility Project which provide up to eight percent of the country’s power requirements. The completion and commissioning of this project is scheduled for the final quarter of 2024.”
He said the growth in the generation of electricity from renewables has been due to rapid technology improvements and decreasing costs of producing renewable energy resources.
Rowley said that the leading role that hydrogen produced from renewable energy sources is poised to play in the energy transition is an opportunity for industry players to embrace hydrogen in creating a sustainable downstream industry.
“In this regard, the government is positioning Trinidad and Tobago to become a leader in this transformative technology known as Green Hydrogen as part of its energy transition, once the cost factor and its restrictions can be overcome.”
Rowley said oil and gas resources are wasting assets, and therefore, efficient exploitation must be undertaken to maximize their contribution to sustainable economic development. He said collaboration in the oil and gas sector is essential due to the high cost and long lead times associated with oil and gas advancements.
“Our small nation has boosted our economy by becoming a significant global player in the energy industry. We boast over 100 years of experience and expertise developed from the oil and gas industry, which has been valued by energy companies operating in Trinidad and Tobago and by developing oil and gas economies that have sought to model their industries on our experience.
“We are no stranger to an energy transition as the largest oil and natural gas producer in the Caribbean and as our energy sector moved from an oil-dominant to a primarily natural gas-based industry in the early 1990s.
“We have successfully maintained our position in an evolving energy market by fostering strong relationships with our upstream developers, downstream industry players, and an energy services industry that is on par with those of developed petroleum economies.”
Rowley said with increasing pressure on the oil and gas industry from all quarters, there is a need for collaboration for effective and efficient delivery.
“It is with the recognition that collaboration is imperative Trinidad and Tobago has stepped up our efforts to formally engage with our regional partners towards the development of economic cooperation in the energy sector.”
He said the Memorandum of Understanding (MOU) between Suriname and Trinidad and Tobago was executed on July 2023. Cross-functional technical teams led by Staatsolie and National Energy have since been established to advance the implementation of the MOU in various vital areas, such as gas production and export, renewable energy, and capacity building. “Notably, we have also actioned our MOU with the government of the Co-operative Republic of Guyana by forming a High-Level Bilateral Commission between Trinidad and Guyana.
“As a small island developing nation, Trinidad and Tobago must, out of necessity, engage with the rest of the world and particularly our regional neighbors, as we continue to build and strengthen our economy,” Rowley said, adding “high on our agenda has been the development of economic cooperation in the energy sector.”
He said that the government has executed unitization agreements with Venezuela, Barbados, and Grenada, allowing for the exploration of hydrocarbon resources in the maritime boundaries shared with these countries.
“As a country with more than a hundred years in the oil and gas business, we are open to collaborating with our regional neighbors in the development of the region’s hydrocarbon resources through the sharing of our knowledge, expertise, and infrastructure in commercial activity.
“Linking the energy and industrial transformations enabled by the energy transitions to a broader economic cooperation would help to ensure that the region makes the most out of its hydrocarbon resources,” Rowley told delegates.
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