Petrotrin’s oil production has declined from 64,500 barrels per day in October 2006 to 45,000 in October 2016. The State-owned company’s Trinmar operations’ oil production also declined from 33,000 barrels of oil per day in 2006 to 21,000 in 2016.
Petrotrin chairman Professor Andrew Jupiter, in revealing the worrying trend at an Energy Caribbean Conference at the Trinidad Hilton and Conference Centre yesterday, warned that if things continue to be done the same way, oil production will continue to decline.
Jupiter was one of several speakers representing the energy interests of different Caribbean countries speaking at the start of a private two-day conference to look at sustainable energy sources for the Caribbean in new oil and gas frontiers, offshore deep-water plays and renewable energy.
He said increasing operational and capital costs and insufficient cash generation to fund investments, were some of the challenges Petrotrin is facing at present.
Giving some options, he said by working together with the Oilfield Workers Trade Union (OWTU), Government and other stakeholders Petrotrin can increase its oil production in the coming years.
“It’s a partnership you have to develop to come up with short and medium programmes to first arrest the oil decline and then increase production,” he said.
Jupiter’s disclosures about Petrotrin’s declining production echoed statements made by Prime Minister Dr Keith Rowley during an address to the nation in September when he advised caution in consumption patterns.
Rowley had said: “For the last ten years we have been sitting on a crisis in the oil production side and we have allowed it to escape us largely because the situation has been masked by relatively strong revenue stream bolstered largely by favourable prices.
“The situation can no longer escape our attention and sustained lower prices now and into the medium term should be a matter of great concern to all of us.”
The PM added: “These developments have serious consequences for our revenue base and must of necessity significantly raise caution in our consumption patterns and debt management activities.”
Jupiter, a former Permanent Secretary in the Energy Ministry, spoke to the small group in the Hilton Ballroom on the way forward for Petrotrin and its role in the development of T&T’s energy sector.
He said Petrotrin’s acreage is not as much as some believe and he wants to request and acquire acreage relinquished to the State after 2012.
He said there are opportunities for development at Petrotrin since assets are located in prolific hydrocarbon basins which are relatively unexplored.
Jupiter said the company has contributed across all sectors of T&T’s economy as the largest crude oil producer and second largest real estate holder. Petrotrin has also made a significant contribution to community development, played a significant role in job creation and paid billions of dollars in taxes, he said.
