The prime minister stated that the region’s rise to prominence in the energy sector offers a priceless chance to proactively leverage the pooled knowledge and experience to maximize opportunities.
Dr. Rowley stated during his recent speech at the International Energy Conference and Supply Chain Expo’s launch in Guyana, “By ensuring our region fully capitalize on its resources, including human and mechanical, we can guarantee the alignment of energy and industrial transformations with a collaborative economic strategy.”
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Rowley discussed this nation’s 100-year expertise and experience in the energy sector in front of an audience of policymakers, energy experts, and investors from 21 different countries. He said that other developing oil and gas economies have looked to this nation as a model to build their sectors.
In light of the conference’s theme, “Fueling Transformation and Modernization,” Rowley stated that T&T, the Caribbean’s biggest producer of natural gas and oil, is no stranger to the energy transition, having transitioned from a nation dependent primarily on oil to one that is primarily dependent on natural gas.
The speaker provided instances of how T&T has effectively sustained its standing in a dynamic energy sector by cultivating robust connections with its upstream developers, downstream industry participants, and an energy services sector that is comparable to those of advanced petroleum countries.
But with the mounting pressure on the oil and gas sector from all sides, Rowley stated cooperation is necessary for efficient and successful delivery.
About the region’s reliance on oil imports, he alluded to a “hostile global business environment” and suggested that cooperation in the utilization of hydrocarbon resources is the sole means of guaranteeing energy security for the area.
“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.”
He explained, “In order to ensure energy security for the region and combat the negative impacts of climate change, it is imperative that we effectively utilize our resources, whether they be hydrocarbon or renewable, through collaborative efforts.”
Rowley stated that effective utilization of oil and gas resources is necessary to maximize their contribution to sustainable economic growth, pointing out that these resources are squandering assets.
“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 the example of T&T’s economic growth and capacity to go from being a little country to a major participant in the world via cooperation.
“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 area can ensure the alignment of energy and industrial transformation with a cooperative economic plan by making sure it fully capitalizes on its resources, both human and mechanical.
According to him, the government of a nation that produces oil and gas has included this principle into its current model production sharing contract to ensure the effective management of petroleum operations.
“It is with the recognition that collaboration is an imperative, T&T has stepped up our efforts to formally engage with our regional partners towards development of economic co-operation in the energy sector”
Dr Rowley stated, “In this regard, the memorandum of understanding (MOU) between Suriname and T&T 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.”
Rowley stated that establishing economic cooperation in the energy sector has been a top priority. He also mentioned that unitization agreements with the governments of Venezuela, Grenada, and Barbados had been completed, allowing for the exploration of hydrocarbon resources in the shared maritime boundaries between these nations.
In addition, Rowley discussed a few of the efforts the area has already taken to start the integration process through shared value chains and infrastructure.
“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.”
Regarding the national development strategy 2016–2030 for T&T, “we signaled 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 referred to the plan created to create a new economy and society, one that is less dependent on oil and gas and more diversified in terms of its sources of income and foreign exchange.
In addition, the government’s aims and efforts were demonstrated by the ultramodern Phoenix Park Industrial Estate, which opened recently.
“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.”
Rowley emphasized that energy is a key component of sustainable economic growth and that changing the energy system to fulfill rising energy demand and reduce global emissions would need unprecedented cooperation amongst all nations and industries.
He clarified, “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 T&T is taking concrete steps to diversify the country’s energy mix,” indicating that a solar utility project is being built, which may supply up to 8% of the nation’s electricity needs.
This project is being carried out in collaboration with a group of BP and Shell, and it should be finished and put into service by the end of the year.
According to him, rapid technological advancements and falling production costs for renewable energy resources are to blame for the rise in the amount of electricity generated by renewable sources.
“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 T&T 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.”
Referencing the region’s reliance on oil imports as a “hostile global economic climate,” the prime minister has indicated that cooperation in the utilization of hydrocarbon resources is the sole means of guaranteeing energy security for the area.
Speeches during the beginning of the 3rd Guyana Energy Conference on February 19th, which focuses on changing the system to satisfy energy demands while decreasing global emissions, were given by Dr. Rowley and Dr. Mohamed Irfaan Ali, President of Guyana.
Rowley, escorted by Energy Minister Stuart Young, pointed out that Caricom’s projected 87 percent oil imports, as opposed to the world average of 21 percent, had left the region susceptible to fluctuations in the energy market.
“In order to ensure energy security for the region and combat the negative impacts of climate change, it is imperative that we effectively utilize 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 noted, “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.”
The T&T PM stated, “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 recognizing 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 noted.
