Senior Economist, Dr Ronald Ramkissoon said he was satisfied with the price at which oil and gas was pegged in the government fiscal package for 2010. “I must compliment the minister for using very conservative prices. Most of the forecasters are projecting higher prices in the year ahead especially in the case of oil, I think that was most conservative but also in the case of gas at $2.75 mmbtu,” Ramkissoon said. Referring to the production sharing contracts he said there is need for more details about it.
Commenting on exploration, Ramkissoon said T&T should learn from previous examples when it comes to exploration activity.
“Previous attempts at getting exploration and production going have not been successful as the country would like, and therefore we want to see if the new measures will make things happen for energy,” Ramkissoon said. He said the energy sector in the budget document remains “hanging,” and unless we find the right balance we will not boost production of oil and gas. “In the short term, exploration and these kinds of activity that take place, will in fact generate economic activity, and that is positive. However we cannot speak about if we will find new gas, if we will find new oil, I know that any Geologist is positive and optimistic that in the shallow waters we might not be too successful, but definitely there are possibilities in the deep waters,” Ramkissoon said.
He said the issue is not only that international prices are soft but if T&T will find the right mechanism when it comes to exploration. He said more cannot be said on the energy sector since it depends on what happens in the short run. “The Ministry of Energy and most of us are involved in consultation with the companies. I can only hope that they will be fruitful and we will get more than exploration,” Ramkissoon said. He said a key concern is how T&T takes renewable seriously when the price of energy is low. “There is the issue of taking a position regardless of where the price of energy is, so that you move ahead with development.
Unfortunately it has always posed a challenge because investors will argue if prices are so low why do I want to invest,” Ramkissoon said.
Ramkissoon said other engines of growth need to be ramped up much faster and more strategically. Meanwhile, Angella Persad, Chamber President said steps should be taken to encourage diversification out of the energy sector because it will assist in the development of the economy. She said the Chamber did a diversification study and plan to share it with other line ministers soon: “We hoped that a policy framework would have been developed and an enabling infrastructure established to encourage meaningful investment in new areas for diversification along the path for economic transformation.”
