Energy Caribbean Conference: Barbados wants part
of energy action
By Sherwin Long
The Trinidad Guardian
Port
Spain
Petroleumworldtt.com
12 10 06
While
T&T is the regional powerhouse in energy, for
2007, Barbados wants to get out of the blocks and
Jamaica wants to vastly improve its energy efficiency.
During
this week’s sixth annual IBC Energy Caribbean
Conference the two countries gave perspectives on
their energy sector needs for the upcoming year.
Ron
Hewitt, general manager of the Barbados National
Oil Company, extended an invitation to companies
to explore Barbados’ offshore and onshore
prospects.
In
early 2007, Barbados will open its bid round for
offshore ultra deep acreage.
Industry
leaders such as BP, BHP Billiton, Total, Chevron
and ExxonMobil have already shown interest in reviewing
the bidding packages.
Hewitt
said direct negotiation between the Barbados government
and companies was also an option.
However,
he noted that a balance must be struck between the
hunt for hydrocarbon resources and environmental
protection, since Barbados depended on tourism.
“As
a tourist destination we are very interested in
preserving the environment. So in looking for a
partner, matters of the environment and fisheries
there should be a demonstration by the company of
(a good) track record in managing these areas,”
he said.
Alluding
to Barbados’ size and class structure, Hewitt
said with any discovery of large commercial reserves
the country would have to implement strategies to
avoid the so-called Dutch Disease.
Dutch
Disease is an economic concept which states exploitation
of natural resources cause the decline or neglect
of other sectors.
He
added that local investment and entrepreneurship
had to be part of Barbados’ energy development.
“We
want to ensure that the current distribution of
wealth is maintained,” he said. “We
don’t want to create a special defined class
structure with any petrodollars (that may come).”
However,
to forge its way in the energy business, Hewitt
admitted Barbados had to revamp its energy legislation
which dates back to the 1950s.
...and
Jamaica looks
into
alternatives
Petroleum
Corporation of Jamaica consultant Dr Raymond Wright
pointed to benefit of the country’s PetroCaribe
deal with Venezuela, but he also maintained that
the country needed to explore other avenues to stabilise
its energy needs.
Already,
for this year, Jamaica has spent US$1.5 billion
on imported energy, he said.
He
described this as a burden on the Jamaican economy
and quantified how much the US$1.5 billion energy
import bill affected the country.
“This
will be about 17 to 18 per cent of our GDP and between
72 and 74 per cent of the earnings we will make
from the export of Jamaican merchandise. So you
can see it is a very heavy impact on our economy,”
Wright said.
As
a result, Jamaica was spearheading an energy efficiency
and energy conservation programme, he said.
Wright
added the government was promoting the use of solar
water heaters and hydro power as an energy source.
He
said Jamaica was also looking into the use of coal
for energy plus using ethanol in its gasoline.
To
help navigate away from these costs, Wright said
Jamaica’s PetroCaribe loans amounted to Jam
$180 million and he noted that Venezuela government
oil company Pdvsa will be a 49 per cent partner
in the upgrade of Jamaica’s refinery.
The
cost of the upgrade is Jam $300 million and the
upgrade will be completed in 2009.
Jamaica
has 20 blocks offshore and four blocks onshore.
Eight of these blocks are unlicenced and Wright
said in January the government will promote these
blocks in Houston.
There
will be no formal bid rounds and instead there will
be direct negotiation with companies, he said.
Jamaica
is trying to finalise a deal for LNG with T&T.
T&T’s
National Gas Company president Frank Look Kin said
during the conference that Jamaica would have to
get any LNG supplied from the Government’s
proposed Train X.
Look
Kin said there was no spare LNG and Jamaica would
have to look to different suppliers.
Wright
noted that Jamaica was looking for partnerships
with the private sector as they felt the State should
not try to monopolise the country’s energy
interests.
“We
are always reminded of the African proverb that
says only a fool will test the water with both feet,”
he mused
The
Trinidad Guardian
Thursday 7th December 2006
Copyright
©2006 TheTrinidad Guardian. All Rights Reserved.
