South Chamber calls for policy on energy resources

WITH presentation of the 2004/2005 National Budget a mere two days away, the South Trinidad Chamber of Industry and Commerce is urging Government to introduce a national policy on the utilisation and monetisation of the nation’s energy resources. The Chamber is also calling for the expansion of the Environmental Management Authority (EMA) to South Trinidad as well as a comprehensive plan to deal with abandoned oil wells and the proper disposal of derelict oil infrastructure.

The proposals were included in a comprehensive paper presented to Government in August, which noted the local energy sector had continued to exhibit strong growth during the last fiscal year. However, there were a number of crucial issues that Trinidad and Tobago must address if it is to translate this growth into sustainable development, the Chamber report stated. “Government must articulate a clear vision for the long term utilisation and monetisation of our hydro-carbon resources, taking into account that such resources are finite and depleting,” the Chamber added. “There is also the need to create new and strengthen institutional capacity, including the legal and regulatory framework to manage change in the energy sector.”

The Chamber believes diversification of the local downstream energy sector and increasing local private equity participation is vital to the continued growth of the sector, which experienced an 11.4 percent growth rate in 2003. However, the Chamber noted while Government had stated its intention to introduce reforms into the fiscal regime governing the petroleum industry by January 1, “To date no legislation to the effect has been passed. “This regime is outdated and is inadequate to the needs of producers operating in mature basins such as the onshore/near shore sector. The Chamber has also recommended a Royalty/Tax holiday for a period of five years on all incremental production above current base levels.  Improvements in the local road network was also on the Chamber’s wish-list with a call to “fast track” the San Fernando-Point Fortin highway development project.