Opinion
- Editorial
William Lucie-Smith:
The Energy Prime Minister
Two
weeks ago I was one of the privileged guests to
be invited by British Gas (T&T) to their inaugural
energy luncheon, at which Prime Minister Patrick
Manning was the feature speaker.
First
Derek Hudson, BG's Chief of Staff, explained that
the purpose of the luncheon series was to demystify
the energy sector and explore its linkages with
the rest of the economy.
Craig
McKenzie, President of BG T&T, indicated that
over the last ten years Trinidad and Tobago had
become a "global gas leader" and that
his company was "bullish" about the future,
preparing to invest US$1 billion over the next four
years.
Feature
speaker, Mr Patrick Manning, then entertained the
audience for 45 minutes with an authoritative presentation
on Trinidad and Tobago's energy sector. Clearly
comfortable with the material and the audience,
Mr Manning made one of the most lucid and informative
presentations I have ever heard him make, underlining
why Derek Hudson had referred to him as "the
energy Prime Minister."
Building
on the foundation laid by Craig McKenzie, Mr Manning
indicated that T&Ts importance was not based
on the size of our reserves. Our reserves are estimated
at less than 0.5 per cent of global gas and 0.1
per cent of global oil, making us a very small player
indeed. We also have a very low ratio of reserves
to production. Despite this we are: the No 1 exporter
of methanol; the No. 1 exporter of ammonia; the
No 1 producer of methanol; the No 6 producer of
DRI; the No 1 exporter of LNG in the west.
The
low reserves to production misleads many into believing
our reserves will soon be depleted. Mr Manning believes
this is an entirely false conclusion as our very
complex geology, combined with aggressive exploration,
continues to replenish our reserves and will continue
to do so in the foreseeable future.
I
am sure we all hope he is right as the consequences
of being wrong would be very serious. Regardless
of the size of our reserves, though, the policy
of monetising them is one with which I agree.
Trinidad
and Tobago's development model has been such a success
that we have been sought out to assist Belize and
Equatorial Guinea in developing their energy industry.
Indeed, as part of Trinidad and Tobago's contribution
to the eradication of world poverty this country
remains willing and able to assist African countries
in their energy industries. It may be that we are
small in production but we are big in intellectual
capital, and assistance is an obligation Mr Manning
is willing to accept.
While
on the theme of obligation Mr Manning made reference
to Trinidad and Tobago's contribution to both Caricom
energy security and, in a small way, to United States
energy security. This part of the presentation gathered
much press coverage. Mr Manning mused as to whether
Venezuela, through PetroCaribe, would honour this
obligation to Caricom. He also chided the United
States for being so preoccupied with the war on
terror that they had given too low a priority to
Caribbean security and the war on drugs. It was
the drug cartels' new freedom that was causing the
increase in guns and violence in Trinidad and we
needed much greater assistance from the US in policing
the eastern Caribbean. This was after all part of
US security and the drug menace was a US problem.
Whatever the feelings about the wisdom of these
forthright comments I have heard few disagree with
Mr Manning on the subject. The stability of the
Caribbean and its security ought to be an obligation
the United States should recognise in its own interest.
The
only part of Mr Manning's speech with which I was
not in full agreement was when he tried to justify
the vast construction programme as part of necessary
human development that would lead to greater productivity
in the public sector. There is now a large and increasing
groundswell of opinion that challenges the need
for the Tarouba sports complex, the Savannah cultural
centre and other projects while schools, hospitals,
roads, and other basic infrastructure remain substandard.
I
also believe we need to save a larger portion of
our current revenues. Mr Manning partially acknowledged
these needs when he indicated he would tap energy
expertise in dealing with his major headache at
WASA. However, whatever out feelings about economic
and fiscal management, the PM gets good grades for
his energy vision.
Trinidad
Express
Monday, September 18th 2006
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© 2006 The
Trinidad Express.
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