Oil
and gas tax incentives needed
Port Spain
Petroleumworldtt.com
12 09 07
Almost
six months ago, the controversial Ryder Scott
report pointing to a 12-year life span for
the country's natural gas reserves surfaced and
sparked widespread
debate regarding the urgent need to make significant new discoveries.
Numerous opinions have since been expressed on
the matter, but thus far no significant new finds
have been made. However, many voices both in the
public and private sectors apparently are in agreement
on the point that natural gas has become harder
to find. As a result, exploratory efforts will
have to be more sophisticated and will become more
and more costly as energy companies move to new
maritime areas for prospecting.
Contrary to a picture of gloom and doom for the
future the country's oil and gas industry that
some politicians using the Ryder Scott report tried
to paint prior to the November 5 general election,
the general feeling is that there are more than
enough natural gas reserves to meet domestic needs,
supply the existing four ALNG Trains and cover
all current international commitments.
Given the multiple new challenges facing these
companies, mechanisms must be put in place to bring
down exploratory costs, thereby leading to greater
emphasis on new blocks in the northern maritime
region of the country, the so-called ultra deep
areas and on-land fields.
Additionally, the time has come for the Government
to take a serious look at establishing new tax
incentives designed to encourage oil companies
to increase production and face the many risks
and challenges involved in exploring for new reserves.
With international oil prices currently averaging
close to US$100 a barrel, the Government is well
positioned to review the current oil and gas tax
regime. With the nation more than ever dependent
on the energy sector, new tax incentives might
be very timely at this juncture as the oil and
gas industry is set to remain the backbone of the
nation's economy well into the future.
Story
from
Trinidad Express
Trinidad
Express
Wednesday, December 5th 2007
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