[UPDATED] Rowley: Collaboration answer to region’s energy security

WITH the emergence of the region as a significant player in the hydrocarbon industry, the Prime Minister said this presents a valuable opportunity to proactively use the combined knowledge and expertise available to maximise prospects.

“By ensuring our region fully capitalises on its resources, including human and mechanical, we can guarantee the alignment of energy and industrial transformations with a collaborative economic strategy,” Dr Rowley said as he addressed Monday’s opening of the International Energy Conference and Supply Chain Expo in Guyana.

Before an audience of policy makers, energy experts and investors from 21 countries, Rowley spoke of this country’s 100-year expertise and experience in the energy sector which has been sought after by other developing oil-and-gas economies as a model to build their own sectors.

Reflecting on the theme of the conference – Fuelling Transformation and Modernisation ­– Rowley said TT, the largest oil and natural gas producer in the Caribbean, is no stranger to energy transition, having moved from being an oil-dominant country to a mostly natural gas-based one.

He gave examples of how TT has successfully maintained its position in an evolving energy market through fostering strong relationships with its upstream developers, downstream industry players, and an energy services industry that is on par with those of developed petroleum economies.

However, with increasing pressure on the oil and gas industry from all quarters, Rowley said there is a need for collaboration for effective and efficient delivery.

Referring to a “hostile global business environment”, as it relates to the region's dependence on oil imports, he signalled that collaboration in the use of hydrocarbon resources is the only way to ensure energy security for the region.

“Collectively, we continue to echo the sentiments of sustained development through the availability of our resources. This availability has been demonstrated by the recent oil and gas findings in Guyana and Suriname.

“In order to ensure energy security for the region and combat the negative impacts of climate change, it is imperative that we effectively utilise our resources, whether they be hydrocarbon or renewable, through collaborative efforts."

Noting that oil and gas resources are wasting assets, Rowley said efficient exploitation must be undertaken to maximise their contribution to sustainable economic development.

“In the oil and gas sector, collaboration is especially important due to the high cost and long lead times associated with oil and gas advancements.”

He used TT’s ability as a small nation to rise as a global player while boosting its economy as an example of what collaboration could achieve.

“Only by working together can we attain our objective of fostering productive and resilient economies in what promises to be an increasingly hostile business environment.”

By ensuring the region fully capitalises on its resources, including human and mechanical, he said the alignment of energy and industrial transformation with a collaborative economic strategy is guaranteed.

He said it is a philosophy of the government of an oil-and-gas producing country has taken on board in its current model production sharing contract, for the efficient conduct of petroleum operations.

“It is with the recognition that collaboration is an imperative, TT has stepped up our efforts to formally engage with our regional partners towards development of economic co-operation in the energy sector.

“In this regard, the memorandum of understanding (MOU) between Suriname and TT was executed in July 2023. Cross-functional technical teams led by Staatsolie and National Energy have since been established to advance the implementation of the MOU in various key areas such as gas production and export, renewable energy, and capacity building.

“Notably, we have also actioned our MOU with the government of the Co-operative Republic of Guyana through the formation of a high-level bilateral commission between Trinidad and Guyana.”

Stating the development of economic co-operation in the energy sector has been a priority, Rowley spoke about executed unitisation agreements with the governments of Venezuela, Barbados and Grenada, which will allow for the exploration of hydrocarbon resources in the maritime boundaries shared with these countries.

Rowley also spoke to some of the initiatives the region has already embarked upon to being that integration process through shared infrastructure and value chains.

“We in the deep southern Caribbean are currently actively engaged in spawning a cargo ferry service which we are confident can grow into a major catalyst for welcomed regional collaboration, development and diversification.”

In terms of TT’s national development strategy 2016-2030, “we signalled the Government’s intention to transition towards a more diversified economy, which produces a broad spectrum of export competitive, high-value products and services.”

He alluded to the roadmap developed for transforming a new economy and society, from an oil and gas dependant industry into one that generates revenues and foreign exchange from a broader range of sectors and a wider portfolio of products.

The recent opening of the ultra-modern Phoenix Park Industrial Estate was also used as testimony to Government’s efforts and intentions.

“These targeted new and increased investments will come from encouraging innovation, entrepreneurship and diversification, inspiring new players in the market to venture into new business and projects such as manufacturing, food processing, insurance, finance and logistics.”

Underscoring that energy is at the heart of sustainable economic development, Rowley noted that transforming the energy system to meet the increasing energy demand while also lowering global emissions will require a broad energy mix, and unprecedented collaboration across all sectors and countries.

He explained, “Producer economies may have to diversify their energy production as they seek to diversify their economies, putting energy transitions at the heart of their development strategies.

“In this regard, the Government of TT is taking concrete steps to diversify the country’s energy mix,” pointing to the construction of a solar utility project which has the potential to provide up to eight per cent of the country’s power requirements.

This is being done in conjunction with a consortium of bp and Shell and which is scheduled for completion and commissioning by year’s end.

The growth in electricity generation of renewables has been due to rapid technology improvements and decreasing costs of producing renewable energy resources, he said.

“Given the leading role that hydrogen produced from renewable energy sources is poised to play in the energy transition, there is opportunity by industry players to embrace hydrogen in the creation of a sustainable downstream industry.

“In this regard, the Government is positioning TT to become a leader in this transformative technology known as green hydrogen as part of its energy transition, once the cost factor and its restrictions can be overcome.”

This story has been adjusted to include additional details. See original post below.

REFERRING to a “hostile global business environment”, as it relates to the region's dependence of oil import, the Prime Minister has signalled that collaboration in the use of hydrocarbon resources is the only way to ensure energy security for the region.

Dr Rowley and President of Guyana, Dr Mohamed Irfaan Ali, both spoke at February 19th's opening of the 3rd Guyana Energy Conference which has a focus on transforming the system to meet energy demands while lowering global emissions.

Rowley, who is accompanied by Energy Minister Stuart Young, noted that Caricom has been made vulnerable to energy market volatilities due to its estimated 87 per cent of oil import, compared to a global average of 21 per cent.

“In order to ensure energy security for the region and combat the negative impacts of climate change, it is imperative that we effectively utilise our resources, whether they be hydrocarbon or renewable, through collaborative efforts,” he said.

“Only by working together can we attain our objective of fostering productive and resilient economies in what promises to be an increasingly hostile business environment.”

He said, “The oil and gas industry will be a major source of energy for decades to come, during a protracted period of transition, even as we invest and expand the contribution of various renewables.

“Policymakers, worldwide, need to re-evaluate the central role it plays in modern life. With rising concerns for future demand and climate change, the industry finds itself in a delicate situation.

“Only by recognising the true scope of these ongoing challenges and addressing their implications by offering leadership on solutions, can the industry continue to prosper in an increasingly complex world.

“The Caribbean energy economies, Trinidad and Tobago, Guyana and Suriname are significant players in this market and will not be irresponsible nor will we shy away from beneficial opportunities."

“...Collectively, we continue to echo the sentiments of sustained development through the availability of our resources.

“This availability has been demonstrated by the recent oil and gas findings in Guyana and Suriname," Rowley said.