Maroc - NEWSDAY.CO.TT - A la Une - 13/Nov 04:36

Oil, gas turnaround no reason for complacency

ENERGY Minister Dr Roodal Moonilal’s November 11 announcement of a rise in oil and gas production is a reason to celebrate. But the minister’s declaration of a turnaround in the sector should be approached with caution. It’s too soon to say if the figures are part of a longer-term shift. And these figures, encouraging as they are, are certainly too modest to inspire complacency when it comes to diversification. Speaking at the American Chamber of Commerce’s annual health and safety conference on Tuesday, Dr Moonilal reported an increase in output from 52,357 barrels per day to 55,271 barrels between the second quarter of 2025 and the third, and a rise in natural gas production from 2.41 to 2.63 billion cubic feet per day in the second quarter. That’s an increase of about six per cent and nine per cent, respectively. “After ten years of decline in the energy sector, I am pleased to report that we have stopped this decline,” Dr Moonilal said. He later stated, “After years of contraction, the data now shows that we are once again moving in the right direction. The challenge ahead is to maintain the pace.” But that’s not the only challenge. The minister’s allusion in his speech to US president Donald Trump’s “drill, baby, drill” mantra pointed to a wider political, social and environmental context, with inherent and significant risks, yet to be properly confronted by any TT government when it comes to the energy sector. Only in October did the Cabinet, in its first budget, unveil a fiscal package in which projected oil revenue was put at just $11 billion while non-oil revenue was put at $43 billion. For the year 2025, the state estimates it will draw $7.8 billion in taxation revenue from oil companies – one of the lowest levels in years. Ministry of Finance figures suggest actual revenue was $11.5 billion in 2022, $10.2 billion in 2023 and then $5.9 billion in 2024. The budget’s oil price projection has divided critics, with some saying it is too high, while government officials maintain it is premised on the results of a specific analysis. Davendranath Tancoo’s budget also said nothing about the fate of Petrotrin assets at Pointe-a-Pierre, though that piece of the puzzle could be coming soon. The committee set up to examine the issue is due to report this month. Meanwhile, the Prime Minister last week unveiled a bold blueprint for nationwide development, providing the kind of radical re-imaging that is required at this point in the country’s history. That plan has been enthusiastically received by members of the business community. It would be a shame if the push for change is abandoned simply because oil and gas money might be about to flow once more. Also left unstated by the minister this week was what measures will be put in place to make tax collection from energy companies more efficient and to minimise the environmental risks now posed by the planned expansion of deepwater. The post Oil, gas turnaround no reason for complacency appeared first on Trinidad and Tobago Newsday.