trinidad and tobago election 2010

Guest blogger Devendra Rajcoomar returns this Thursday to continue his analysis on the energy policies of the two main political parties. Wednesday he analysed the PNM’s energy election policies. And now he focuses on the UNC’s or what’s called the People’s Partnership. Rajcoomar is a Trini-to-d- bone Consultant Fluid Drilling Engineer for the international firm Mi Swaco.

My initial reaction after reading the People’s Partnership manifesto’s first paragraph is that this has been written by someone who has experience working in an international oil company. The energy section in the PNM’s Manifesto sounds like it was written by an OJT in Petrotrin. Only the People’s Partnership immediately highlights the truth of the industry’s declining resources. And they go on to “comfort” us by saying they have a plan to deal with this in an environmentally safe manner, unlike the PNM’s manifesto which never stated this fact. Kind  of wonder if the PNM is trying to hide something from those who don’t know better. Here’s what I think of the People’s Partnership’s energy manifesto.

1. Developing a Gas Pricing Policy. And round one goes to the People’s Partnership. Not only have they immediately identified that it’s GAS NOT OIL that is driving the economy, but they are ready to adjust prices. Excellent! Time for BP to pay for the natural resources of countries and stop destroying them by spilling oil all over the Gulf of Mexico.
2. Ensuring gas projects are public and we the citizens are in the know. Good. Don’t tell us that we need a smelter when major countries around the world deny approval of these plants because of the adverse environmental damage. The People’s Partnership is not going to dictate gas projects they’re going to consult the communities.
3. The  promise of a comprehensive review of taxation, policies, laws and regulations. Very much welcomed. Because these foreign oil companies can become very comfortable and feel like they can hold us to ransom. Remember what Chavez did recently? He actually locked out these foreign oil companies from their offices in Venezuela until they agreed to do what he wanted. And guess what? They did, because they need the oil and gas so badly. They are addicted. Don’t be fooled. It’s good to review these policies to keep the oil companies on the edge of their seats so that they will use better technology, environmentally friendly procedures and prices. We need  to review not just the production sharing contract, but our packages of policies to these foreign oil companies.
   
4. Continuous expansion of energy skill sets. Education, university etc…10 points. Remember it was the  UNC who introduced Trinidad and Tobago Institute of Technology (TTIT) which is now University of Trinidad and Tobago (UTT). Many of us, including myself, are results of this institution and are succeeding in very high levels throughout the industry.
5. Ensuring gas allocation and energy security by analysing the true potential of our reserves and ensuring it’s put to the best use in the country. Fantastic. We need to quote more realistic numbers for our reserves and not over-estimate their volumes. However, the People’s Partnership doesn’t go into much detail as much as the PNM. They don’t disclose how they’re going to allocate our reserves. All they said is they’re going to evaluate it.
6. Incentive program for companies considering development of renewable resources. Unfortunately not much detail. Again we need to be hearing more about this from all parties. Where are the windmillS and solar panels? At least the PNM is looking to develop some green energy policies.
7. The increase in local content. Great. Two main things for me are the participation and ownership in energy projects. Why can’t we have more local owned energy companies? Is only mass costume and townhouse we know to build? And the resolution of the outstanding issues in the Caribbean and Latin America– Petrocaribe and CSME? The People’s Partnership is again stepping forward in reviewing these agreements. Why can’t Caribbean islands make a deal with Trinidad, and not Chavez, to satisfy their energy needs. There must be some way Trinidad can supply our neighbours and make some money from it. And it’s good the People’s Partnership is looking into this.
   

Conclusion

Basically, the People’s Partnership manifesto highlighted and reminded us that energy resources are on the decline and we need to manage it properly. They correctly identified gas is the bread winner of our economy and promised to look at gas pricing. They also said gas pricing, the policies, regulations and taxation of gas will be reviewed. Good idea. Again, GAS NOT OIL, as not emphasized on by the PNM, is our main focus.

Although, the People’s Partnership lacked detail on its incentives or enhanced oil recovery projects, there was some mention with it being necessary.  That’s good. We need to continue our efforts to retrieve oil from existing fields, but please do not make it the frontline act. The People’s Partnership is also willing to re-look the position in the Caribbean with the CSME and Petrocaribe. I’m not sure of the details of this agreement. But we definitely need to rethink this agreement.

Again these are all promises. And whether they’re going to be fulfilled this is unclear. But the fact the People’s Partnership is expressing these views and the PNM is not, says something. The PNM’s manifesto only highlighted four main pain policies. The People’s Partnership offered much more.

Thanks Devendra for your insightful views. Readers can read Devendra’s full analysis of the PNM’s election policy here.

Dasheen bush. Ochro. Pumpkin. Coconut milk. And Magi Flavour D’Pot, if you please. These are all essential ingredients to a good Sunday Callaloo. But if it wasn’t for the blue flame raving beneath granny’s charred coal pot, these flavours would not create this Creole masterpiece. So too with Trinidad’s economy where oil and natural gas are its currency.  Guest blogger Devendra Rajcoomar analyses the energy policies of the two main political parties in a two-part entry. Rajcoomar is a Trini-to-d- bone Consultant Fluid Drilling Engineer for the international firm Mi Swaco.

The PNM’s 2010 election manifesto points out the importance of energy to the Trinidad and Tobago’s economy, with it accounting for 50% of our  GDP, and the need to sustainably manage this resource.

They also outlined 4 main areas that they would place their energy focus:

Fiscal terms/contracts

Prioritizing the use of gas

Petrotrin improving oil production

Renewable energy

1. Fiscal terms or Production Sharing Contracts will essentially give tax breaks to companies who decide to revitalize old oil fields so they can have money to explore and drill. Good idea. However, this particular policy seemingly targets companies who are producing oil and not gas. But over 10 years now there has been a need to review the gas taxation policy as this is our country’s bread winner now. NOT OIL
2. Prioritising of Gas, basically they are only saying how they intend to divide the gas being produced in Trinidad between the existing petrochemical industries and future ones; including the aluminum smelters. There was no insight on how they intend to increase sales of  gas on the international market. Especially considering how our major market, the Eastern US seaboard, does not get 75% of its gas import from Trinidad anymore. Basically we need to establish new international markets for our gas. This is our mainstay at the moment. NOT OIL. Trinidadians need to realise that although the price oil is so high, the actual oil Trinidad produces doesn’t sell for the odd US$60 a barrel market value. It sells for almost half that.

   

3. Petrotrin, they are asking the state owned oil company to utilise the 3D survey data they have deployed to discover new oil potential which in return should result in increased oil production. However, all the pundits, even company Ryder Scott who compiled an independent energy report a few years ago, have all suggested that worldwide oil production is on the decline if it hasn’t already. This is true globally and more so in Trinidad. In his book Peak Oil Paradigm Shift, Bilaal Abdullah, argues that the world’s oil production has plateaued, and it will never reach production levels that it has in the in the past. And so it’s misleading to expect Petrotrin to single handedly boost its oil production significantly through new discoveries. Again, OIL IS OUT, and GAS IS IN. And foreign oil companies will not consider any new ideas into new oil in Trinidad either, at least not on the scale the PNM is asking.
4. Renewable Energy, probably the biggest concern globally, has been spoken of last. And other than a few promises of developing policies and partnerships with the US, they have not clearly stated what they intend to do. Why aren’t we envisioning windmills and solar panels? Basically, I believe they have only inserted this item in here to calm the environmentalist. I for one do not expect any serious drive to a solution for this anytime soon. Pursuing a renewable energy policy doesn’t mean we abandon oil and gas production.  These green energy sources go hand in hand with oil and gas discovery. Even Barack Obama has said the US will accelerate its oil and gas discoveries and alongside its renewable energy breakthroughs. Soon they might be drilling off  the entire US Eastern Seaboard. I might be flying to NY, getting into a chopper and going to the rig. Why then should we expect anything different from Trinidad? And if the PNM pursued both policies, I could also be flying  from Movie Towne past a windmill farm Down De Islands to an offshore rig in the Gulf of Paria.

Read Devendra’s views on the  energy manifesto of the coalition of  the People’s Partnership here.