Trinidad and Tobago - Energy and power

Trinidad and Tobago is the largest producer of oil and gas in the Caribbean region. Petroleum is the main source of energy and since the 1940s has been the principal industry. Petroleum and petroleum products provided 68% of export earnings and 22% of government revenue in 1995. However, production of petroleum has been steadily decreasing since 1978, and its contribution (including asphalt extraction and refining) to the gross domestic product (GDP) decreased from about 35% in 1980 to about 25% in 1999. As of 2002 it was estimated that known reserves would be depleted in about another decade.

Commercial petroleum operations began in 1911 and increased substantially since that time. Current mining and exploration leases cover almost 90% of the land area and the bulk of all Trinidad and Tobago's territorial waters. Natural gas reserves were estimated at 663.9 billion cu m in early 2002. Foreign capital has sponsored most exploration, mining, and processing. The oil fields are in the south of Trinidad and offshore in the Gulf of Paria; roughly 75% of production is from offshore wells.

Trinidad's oil production peaked at 245,000 barrels a day in 1977 and fell to 141,500 barrels a day in 2002. Proved crude oil reserves were 716 million barrels at the beginning of 2003; several untapped offshore fields in the southeast were under exploration. Subsidiaries of Shell and Texaco built the two largest refineries. In August 1974, the government took over Shell (Trinidad), paying compensation of us$45 million. In 1985, it acquired Texaco's onshore fields and oil refinery. That year the government also acquired ownership of another major oil company, Trinidad-Tesoro Petroleum, which it renamed the Tesoro Petroleum Company.

As of 2000, Trinidad and Tobago is one of the world's leaders in natural gas production and uses natural gas for electricity, and in the petrochemical and other industries. Exports of LNG, from a plant built by an ARCO-led consortium, began in 1999. Plans are under way to triple the plant's capacity, making it the world's fourth-largest LNG facility. As of 2002 Trinidad and Tobago was the world's leading exporter of both methanol and ammonia. Completion of the world's largest methanol plant was slated for 2004, with an even larger plant scheduled to begin operations within the same year. Natural gas production in 2001 was 13.9 billion cu m. All natural gas produced is used domestically. About 70% is piped to ammonia, methanol, and urea plants; the state-owned steel mill; and the Trinidad and Tobago electric utility sector.

The Trinidad and Tobago Electricity Commission has been carrying out electrification throughout the islands, and generation as well as domestic, commercial, and industrial use of electric power is well ahead of other areas in the former British West Indies. More than 95% of the current total generating capacity is publicly owned and operated by the commission; the remainder is installed mainly in oil refineries and sugar factories. In 2000, total electrical energy production was 5.2 billion kWh, over 99% of it from fossil fuels. Consumption of electricity in 2000 was 4.8 billion kWh. Total installed capacity in 2001 was 1,417,000 kW, all of it in conventional thermal facilities. A submarine cable provides Tobago with electricity from Trinidad.