Ever sit and wonder to yourself, “What is the real scene with our energy sector boy?“…well wonder no more. Gather round lemme give you the basic rundown.
Here are 6 quick facts about our local energy sector:
1. What is the energy sector?
The energy sector is a general term used to summarise all of the industries involved in the production and sale of energy (oil and gas) including exploration, extraction, refining, manufacturing, marketing and distribution. The sector is divided into these three parts:
upstream: exploration and production
midstream: transmission, and
downstream: manufacturing, processing, retail.
The relationship among these sub-sectors is referred to as the energy/oil and gas value chain.
2. “Old like the road…”
The energy sector of Trinidad and Tobago is roughly, over 100 years old.
1857 – the first well drilled for oil in Trinidad was 61 metres deep in the vicinity of the Pitch Lake by the Merrimac Company.
3. “Where all we money does come from dad-dayyyy?” *Erphaan voice*
The energy sector contributes to approximately 40% of our Gross Domestic Product (GDP). GDP is the total value of goods produced and services provided in a country during one year. This means, a large portion of our revenue comes from the export of oil, natural gas and petrochemicals. For the past four decades, the energy sector has been the backbone of Trinidad and Tobago’s economy.
4. “Sweet sweet T & T…”
The price of gas in Trinidad and Tobago is subsidized. What does this mean? A subsidy is a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive. Basically, the government covers a portion of the cost of fuel, making it more affordable to the common citizen. The current price of gas stands at:
Super – $3.58 TT
Diesel – $2.30 TT
Due to our current economic climate and the current price of oil, the fuel subsidy is expected to decrease further, causing the prices to be paid by the consumers, to increase.
Apart from our fuel subsidy, The price of electricity in Trinidad and Tobago is also subsidized, making it the cheapest electricity rates in the Caribbean . The residential cost of electricity in Trinidad and Tobago is US$0.04 per Kilowatt-hour, which is well below the regional average of US$0.33 per Kilowatt-hour.
5. “The land of oil and music……and natural gas?”
Somebody call Machel and King David Michael Rudder to remix the song one time!!! We moved from a dominant oil industry to mainly a natural gas-producing one in the late 1980’s, early 1990’s. Trinidad and Tobago is the largest producer of oil and gas in the Caribbean. Globally, we are a major gas producer, with a total gas production of 4,325 million standard cubic feet per day.
6. Our exports…
T & T is the world’s largest exporter of ammonia
2nd largest exporter of methanol. There are 11 ammonia plants and 7 methanol plants in Trinidad.
7th largest exporter of Liquefied Natural Gas (LNG), accounting for 43.4 % of US Imports in the year 2010.
So if you feel all we good for in T & T is Carnival, soca, doubles, rum, beach and gyal…yuh better think again!!!!
Stay tuned for more info, where we delve deeper into the ins and outs of our energy sector.
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