Petrochemicals fallBy

In a section entitled “The Real Economy” there was mixed news regarding “energy and extractive industries” with crude oil refining/production falling last year, but natural gas production increasing by 5.8 from 25,515 million cubic metres to 26,996 million cubic metres, while for petrochemicals it was all declining production.

For nitrogenous fertilisers, urea production fell by 16 percent to 416,000 tonnes, while ammonia production fell by 5.5 percent to 3,233,000 tonnes per year. “As a result export sales of ammonia also fell in the current period by 9.6 percent to 2,923,000 tonnes, thereby reversing the expansionary export trend witnessed in the previous two years.”

Likewise methanol production also fell by 1.5 percent from 4,053,000 tonnes to 3,991,000 tonnes last year, causing a ten percent drop in methanol exports.

The report also cited problems at the Mittal Steel plant in Point Lisas. Production of iron and steel products contracted by 16.6 percent, while production of direct reduced iron (DRI) fell by 17.2 percent.

Mittal’s exports were also hampered by inefficiencies at the port.

The report added that drilling for oil/gas had increased from 110,000 metres in 2005/2006 to 129,000 metres last year, reflecting a shift from marine to onshore drilling. The report spelt out falling oil production. Less crude oil was found, with production falling from 36.5 million barrels in 2005 to 30.6 million barrels last year. Also, local refineries were processing less oil, this throughput falling from 39.4 million barrels to 38.2 million barrels over successive years. Oil extraction, although still overwhelmingly based at sea, was shifting slightly towards land. “The share of domestic crude production from marine fields also declined to 81.7 percent of total production, from 84.2 percent in 2006.”