Planning
fresh energy strategies
Port Spain
Petroleumworldtt.com
11 11 07
It
was an election campaign charged with emotions
but very lame on pragmatic content. My hope is
that by the time this column is read both euphoria
and despair arising out of the elections results
would have quickly dissipated. In the famous words
of George Chambers-"fete done, back to work".
The start of a new Parliament represents a new
beginning. It represents an opportunity to review
and evaluate what has transpired over the last
term as well as the lessons from the election campaign.
It is an opportunity to carefully plan for and
utilise fresh strategies for meeting new and existing
challenges. Despite its stellar performance, particularly
over the last 15 years, the energy sector also
faces its share of challenges which the new Government
will have to address. These may be conveniently
grouped into fiscal, administrative and operational
headings.
Operational challenges exist throughout the energy
value chain. In the upstream arena, perhaps the
most immediate challenge is to boost gas reserves.
Reserves are the most important asset for a hydrocarbon
company's long-term viability. The same is true
for a country as dependant on hydrocarbons sector
as we are. The new Government is likely to give
some priority to adjustments in the fiscal terms
applicable to exploration and production operations.
However,
it is likely to wait for results of the ongoing
exploration work before showing its hand.
For example, there is very keen interest in the
prospects of the Canada Superior, currently drilling
in a previously unexplored area off Tobago. Discovery
of hydrocarbons in this or any other area will
calm anxiety about the gas reserves situation.
In Tobago, however, success is likely to open up
a new set of business opportunities not now possible.
It also would raise expectations about adjustments
to fiscal arrangements. The marine areas have been
the source of most of T&T's oil and gas production
since the early 1970s. However, renewed exploration
effort on land should be an imperative in this
new term.
In this regard, the Government would have to give
consideration to new strategies for releasing acreage
currently held by Petrotrin to private sector participation
solely or in joint venture with the state oil company.
The lease operatorship and farm out programmes
first introduced in depressed market of the late
1980s should be revisited and revamped.
The Government's biggest headache in the downstream
oil business is the future of Petrotrin refinery.
Ranked in the lowest efficiency quartile among
refineries globally, the refinery has been through
several upgrades to improve its product mix and
viability. However, problems persist. For several
years now, many have felt that the answer is just
a completely new refinery.
Now that the fortunes of the market has provided
windfall revenue to the state, it would not be
surprising to see the Caroni solution applied to
the staff of the existing refinery.
Story
by Energy Correspondent from
Trinidad Express
Trinidad
Express
Thursday, November 8th 2007
Copyright
©2007 Petroleumworld. All Rights Reserved.
