PORT OF SPAIN – Energy Minister Stuart Young Monday said that the energy sector is at crossroads facing unprecedented challenges but also unparalleled opportunities.
“As we navigate this complex landscape, it is imperative that we invest aggressively but prudently for a sustainable future,” Young said as he delivered an address at the Trinidad and Tobago Energy Conference organised by the Energy Chamber of Trinidad and Tobago on Monday.
“We are witnessing a significant shift in global energy dynamics. Climate change, geopolitical tensions, and technological advancements are reshaping how we produce, consume, and think about energy. The path forward requires not just vision but concrete investment and a belief in our destiny.”
Young, who is expected to assume the position of prime minister within the coming weeks after the incumbent Dr Keith Rowley announced his resignation from active politics, said he would say, without fear of contradiction, ““”that what we have done to propel and secure Trinidad and Tobago’s future in the sector has been indicative of confidence in our country and reflective of unparalleled competence.”
Young said according to the World Economic Forum, rapidly industrialising upper-middle income economies with growing energy demand will need to navigate potential trade-offs between climate mitigation and socioeconomic development.
“The climate transition and its socioeconomic effects vary across countries due to their distinct contexts; however, many nations face comparable challenges and may pursue similar strategies for achieving an equitable transition.
“In 2024, although clean energy investments outpaced historical growth rates, the increase is insufficient to reduce the rising demand for fossil fuels or to replace current fossil fuel usage,” Young said, adding that consequently, fossil fuel demand is projected to rise by over three million barrels of oil equivalent per day this year.
But he noted that energy experts have indicated that global upstream investments are anticipated to decrease by two per cent this year, indicating a stabilisation following the significant growth experienced earlier in this decade.
He said investments in deep-water projects are forecasted to rise by three per cent, propelled by advancements in Guyana, Suriname, Mexico, and Turkey.
Young said the global demand for liquids is projected to increase by approximately one million barrels per day, with natural gas liquid (NGL) and other liquids expected to contribute an additional growth of over 300,000 barrels per day next year.
He said this demand will be influenced by significant technological and fundamental global trends that are expected to affect international energy markets in the upcoming year.
“Trinidad and Tobago as a small oil and gas producer will be impacted by these global trends. The global movement to clean energy has resulted in government taking steps to diversify and strengthen our energy sector.
“However, this has not been at the expense of oil and gas, which are the mainstay of our economy and will remain so for the foreseeable future. Our strategy has been to accelerate the exploitation of our oil and gas resources which is in keeping with industry trend and the market requirements. “
Young spoke of the government’s aggressive interventions in the sector negotiating and awarding new contracts and urging upstream gas producers to work with the government to spurn a resurgence of real investment in Trinidad and Tobago.
“We also receive better returns on our natural gas for our citizens as a direct result of work we began in 2018 securing prices for our gas that have averaged 15-55 per cent higher than the traditional Henry Hub and other outdated indices. We respectfully negotiated and obtained that basket of indices that now includes Asian, European and liquid’s pricing as the new and accepted formula for our gas. “
Young said that the International Energy Forum has maintained that more investment in new oil and gas supply was needed to meet growing demand and maintain energy market stability. He said based on the global energy outlook it estimated that a cumulative US$4.3 trillion in new investments will be needed between 2025 and 2030 to ensure adequate supplies due to growing demand and cost inflation.
“This augurs well for Trinidad and Tobago as the global energy industry has seen a turnaround by oil majors who have cut back on their renewable plans and shifted their focus to their oil and gas segments.
“As a consequence, there remains a strong interest by energy companies in proven hydrocarbon provinces. In the global scenario Trinidad and Tobago as at December 2024 ranked within the top 25 of global gas producing countries.”
Young said that in the last gas reserves audit conducted by independent petroleum consultant DeGolyer and McNaughton, Trinidad and Tobago’s gas reserves stood at 11 tcf but could rise to a potential of 20 tcf with the conversion of other technically recoverable quantities. He said exploration resources stands at 58.84 tcf and offer much promise for the exploration to be undertaken by successful companies in the recent bid-rounds.
“In keeping with our strategy to maximize the exploitation of our hydrocarbon resources we embarked on a series of bid rounds which comprised blocks in our deep-water, onshore and shallow-water,” Young said, adding that “all of our recent bid rounds have resulted in the grant of production sharing contracts or exploration and production licences to the successful bidders”.
He said the outcome of the grants and licences will result in an upsurge in level of domestic upstream activity over the next five years and that activity is already rising and taking place in particular over the past 12 months.
Young said that as the government continues to align with its strategy to optimize the utilization of hydrocarbon resources, it is pressing on with the bid round programmes.
“We believe that the global outlook on fossil fuels, especially concerning oil and gas, has shifted, as leading energy firms have reduced their investments in renewables to concentrate on the more profitable, and needed, oil and gas sectors.
“It is essential for us to capitalise on this opportunity and continue our efforts to aggressively attract upstream investment. While the bid round has served as the primary method for securing such investments, we are also receptive to out of bid round proposals. We have shown an ability to work with established upstreamers to ensure the energy security that our country needs.”
He said that the deep-water province holds the greatest promise for major oil and gas discoveries. He said in the recent exploration activity conducted in the deep-water by Woodside, eight of the 14 wells drilled resulted in an in-place discovery of approximately 10.8 tcf of natural gas with an estimated 7.2 tcf being potentially recoverable.
Young said that at present the Ministry of Energy and Energy Industries is in discussion with Woodside on plans to develop 3.5 tcf of reserves in gas fields within its Calypso Project.
He said there continues to be a strong interest in the undeveloped acreage in the deep-water as the prolific Guyana-Suriname Basin is a south-east extension of our eastern deep and ultra-deep marine areas.
Young said in light of the strong interest in the deep-water the ministry identified potential prospects and developed a package for a 2025 Deep Water Competitive Bidding Round which was launched on January 27, this year.
“The Bid Round covers 26 blocks situated off the eastern and northern shores of Trinidad and Tobago. This bidding process will close on July 2, 2025, with the announcement of successful bids three months following the conclusion of the bidding round,” Young told the conference, adding that “our exploration programme is aimed at ensuring the sustainability of our energy industry”.
He said it is as a consequence of such initiatives that new projects such as BPTT Cypre Project and the Mento project, a Joint-Venture between BPTT and EOG (EOG Resources, Inc) .have been realised.
Young said Mento will be a 12-slot, manned facility located in acreage jointly licensed by bpTT and EOG off Trinidad’s southeast coast. First gas is expected in 2025.
Young said the next major phase of upstream development will comprise BPTT Ginger Project, the joint venture between BPTT and EOG in the Coconut Project and Shell’s Manatee Project.
He said the development costs for the projects are in excess three billion US dollars. (CMC)
