BPTT’S EXPLORATION

BPTT’s announcement of its plans to invest US$1.9 billion in exploration activities in Trinidad and Tobago is understandably welcome news. But the country should not view the announcement of bpTT’s investment in the exploitation of our hydro-carbons in isolation, but rather concern itself with what would all of this mean to Trinidad and Tobago in the medium and long term should bpTT’s projections be achieved. For example, what will it mean in terms of additional Government revenue, foreign exchange earnings, employment, salaries and wages as well as income by domestic entrepreneurs through the purchase of goods and services, not only by the multi-national but by contractors and subcontractors and by management, staff and labour hired during the period of exploration.

What will it mean, as well, and this along with additional exploration by other energy companies and planned further trains by Atlantic LNG, in added transfer of income to Trinidadians and Tobagonians, directly and indirectly? Will it mean vastly improved State health services; more and/or refurbished schools and an increase in the tax allowances provided senior citizens, as well as greater allocations for vocational training and skills developments and a carefully planned widening of our industrial and entrepreneurial base? In turn, will it add up to a strengthening of the country’s infrastructure, roads, water, electricity, and a greater Budget allocation to the Public Transport Service Corporation, and a needed addition to the existing Priority Bus Route, which should see a new PBR roadway, this time to the South along the old railway bed formerly used by the Trinidad Government Railway? Despite recently determined huge reserves of oil and natural gas, our oil as well as that of our natural gas must be understood to be a wasting asset. And even as we welcome multinationals to assist in the development of our hydrocarbon industry, we have to prepare now to make the shift to non-energy based development in preparation for the day when both the country’s natural gas and crude oil reserves will be depleted.

Already, indications on the basis of studies are that these reserves will last for another 50 years. Admittedly, in 1952 the experts had all predicted that crude oil reserves would have run out by the end of the 20th century. Since then additional reserves were found, which resulted in a revision of the formerly held life of our reserves. But because they cannot last forever plans must be put in train now for the day when they run out, whether this takes place 50 or 100 years from now. In addition, even as we seek to encourage bpTT and the other multi-nationals to further develop our hydro-carbon industry, the country’s leaders should take the needed decisions to ensure that Trinidad and Tobago obtains optimum returns from its oil and gas, rather than that these returns be tilted overwhelmingly in favour of those who exploit our hydro-carbon heritage.