Opinion
- Editorial- Commentary
STCIC:
What’s the future of energy?
Since
the release of the Ryder Scott audit report in
August 2007, there has been extensive debate
in T&T about the future of the energy sector
and the direction that the economy needs to take
in a possible “post hydrocarbons” future.
In response to this debate and concerns, the STCIC
outlined a vision for T&T as a world-class
petrochemicals and metals-sector hub and as an
exporter of energy services to other oil and gas
producing countries.
To
further the discussion on the future of the energy
sector, the STCIC chose as its theme for
this year’s T&T Petroleum Conference
2008 (TTPC 2008) “The Future of Energy?”
The
question: what is the future of energy? will
be addressed by the keynote speaker of TTPC 2008
David Hobbs, vice president and director of Global
Research at Cambridge Energy Research Associates
(CERA). CERA is regarded as one of the world’s
leading consulting and research firms in the field
for being at the forefront of strategic thinking
in the international energy industry.
Reserve to production ratio:
A
key issue point of debate in T&T over the
past few months has been the issue of our reserves
to production (R/P) ratio and whether the country
should be worried that the R/P has declined in
recent years. While some technocrats have downplayed
the importance of the R/P ratio as an important
metric in the management of the economy and the
energy sector, other commentators have seen the
R/P ratio as being a crucial indicator that needs
to be at the forefront of national planning.
In
response to this debate the STCIC has organised
an expert panel entitled: does T&T need a target
reserve to production ratio, and if so what should
it be?
The
expert panel addressing this issue includes Herman
G Acuna, senior international vice president
of Ryder Scott, and the lead consultant for the
T&T gas audit team. This will be the first
time that Ryder Scott will be addressing this topic
in a public forum in T&T. The other panellists
include: Bill Cline, joint chief executive; Gaffney
Cline & Associates Group and Trevor Boopsingh,
chairman of the Association of Caribbean Energy
Specialists.
Cline’s company was the author of the Natural
Gas Master Plan for T&T which was submitted
to the government in 2002, while Boopsingh is one
of the acknowledged leading experts on the energy
sector in the Caribbean and a lead author of the
Energy components of Vision 2020.
Are energy services our future?
Another
important session at TTPC 2008 will address the
issue “Are energy services our future?
The STCIC has long advocated that T&T needs
to prioritise the export of energy services in
its plans for economic diversification and export
promotion. This session will look at a range of
issues that support the development of the energy
services sub-sector in T&T. These issues include
the role of human development, the role of local
content policy and the role played by the establishment
of a system of uniform health, safety and environment
(HS&E) standards.
To
successfully build a base of local energy service
companies that can export their services internationally,
it is important that local energy service companies
get the opportunities to play a larger role in
the T&T energy sector. The thinking being that
is that we must first win business at home and
then grow abroad. This two-phase strategy was successfully
employed from the 1970s to the 1990s in Norway
and the UK. The experience of other countries in
enhancing local content is always valuable to T&T.
In this regard, the presentation at TTPC 2008 by
the Minister of Energy of Nova Scotia should be
of interest as it deals with Nova Scotia’s
experience with local content.
Going further downstream
The
conference theme is important for T&T
where more than 40 per cent of the economy is derived
directly from the energy while other sectors are
indirectly linked to it.
The reliance on the energy sector has led to renewed
discussion around diversification. There can be
no doubt that we need to diversify the economy
but diversify to what and from what?
The STCIC has advocated that economic diversification
take place using the energy sector as a platform
and by linking other sectors (services and manufacturing)
to the energy sector.
TTPC 2008 will address plans to diversify the
energy sector and by extension the economy by moving
further downstream of primary petrochemical processing
at Point Lisas.
Exploration and production
The
future of energy is also linked to the presence
of exploration and production companies in T&T
and the activities of companies in the midstream
and downstream subsectors. It has been advocated
that T&T needs to increase its rate of exploration
for oil and natural gas in the future.
In
relation to this goal, the TTPC will see presentations
by the major upstream oil and gas companies in
T&T.
One of the companies scheduled to make its debut
at the TTPC is Petro-Canada. Over the last four
months, Petro-Canada has been busy with its exploration
activities in the Gulf of Paria (Block 1a and 1b)
and in the Caribbean Sea (Block 22).
Altogether,
Petro-Canada is expected to drill eight exploration
wells, four of which will be
drilled in Block 22. Petro-Canada will be represented
at the TTPC by Gordon Carrick, senior vice president
of operations and technology. T&T’s largest
producer of hydrocarbons, bpTT will also present
an update of its activities. These presentations
are highly anticipated by the energy service companies
in T&T as they provide rich information on
upcoming projects and future work plans.
At
the end of the conference, it is expected that
a rigorous discussion will have taken place that
would help T&T paint a picture of what the
future of its energy sector would look like.
The
STCIC, along with the Geological Society of T&T,
is pleased to play the important role of providing
the facilitating environment for this
most important discussion among leaders of government,
business and academia.
Further information on TTPC 2008 is available
at www.stcic.org
STCIC is
South Trinidad Chamber of Industry and Commerce.
Petroleumworld not necessarily share
these views.
Editor's
Note: This article was first publish
in Trinidad Guardian, Thursday 24th January, 2008.
Petroleumworld reprint this article in the interest
of our readers.
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Petroleumworld
01/27 /07
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