Diversification! Oil prices falling!

[toyolink]

The most recent undertaking by Opec. and Russia is quite interesting especially when Opec's output in Sept. was the highest in the pass 8 years.
Prices seem to be in the $45-$50 band.
My understanding is that Russia now needs $55-$60 to avoid serious problems, hence willingness to restrict output.

[gastly369]

Reading that this morning dey..

[toyolink]

It really seems as if the big producers who insisted in flooding the market are now themselves entering the realm of serious GDP problems.
......thinking might change to 'best we keep we oil instead of giving it away'.

[The_Honourable]

No big strike for BHP Billiton off Trinidad and Tobago

January 3rd 2017

BHP Billiton looks to have drilled the second well of its closely watched Caribbean ­exploration program without hitting a big oil discovery, quietly moving its drill rig from the ­Burrokeet site off Trinidad and Tobago to the US Gulf of ­Mexico.

It increases the likelihood that the resources giant’s oil growth ambitions will be ­pursued through acquisitions.

After a recent worldwide ­exploration review, BHP is targeting big frontier oil discoveries of more than 250 million barrels off Trinidad and Tobago and in the Gulf of Mexico, with plans to drill six to eight wells in the next three years.

Its 2016-17 oil exploration budget for conventional oil is $US700 million ($973m).

At Trinidad and Tobago, which is the exploration site with the most potential to produce oil quickly, the company has been generating excitement by targeting deepwater finds with the ­potential to become five-billion-barrel systems.

But the company’s drill ship, the Deepwater Invictus, has moved off the Burrokeet site, northeast of Trinidad and Tobago, after drilling there without any declaration of a discovery. BHP confirmed the Deep­water Invictus was powering its way to the US Gulf of Mexico to drill the Wildling appraisal well near the Caicos discovery, which was ­announced in October.

“BHP Billiton has concluded phase one of its Trinidad and ­Tobago deepwater drilling ­campaign,” a spokeswoman said.

“Results of the Burrokeet well are currently being evaluated and are expected to be reported in the upcoming operational ­review.”

BHP is due to report its ­December quarter results on January 25.

While BHP gave no indication of the well results, the lack of an announcement indicates no discovery has been made.

The first well in the two-well first phase, called LeClerc and south of Trinidad and Tobago, also did not result in a big discovery. But BHP put out an announcement saying it had made a gas discovery and that there were promising indications that more oil could be found.

LeClerc and Burrokeet were testing two different oil plays.

In an October briefing, BHP petroleum exploration head Niall McCormack said there was multi-billion-barrel oil potential at Trinidad and Tobago.

But he said failure to make a discovery at Burrokeet, which is a test of the Palaeogene play, would not be terminal.

“We are testing new plays in the deepwater Caribbean over 100km away from the closest well control,” Mr McCormack said. “Historically, these types of areas take more than one well to prove the presence of tier-one (discoveries).”

He said the results at LeClerc and Burrokeet would be integrated into analysis for phase two, which was expected to start in the second half of 2017.

But he also warned that further exploration would only continue if the initial results supported this. He said they had at LeClerc.

“The liquids in the deep and the oil shows that what we found were incredibly important ... and have given us the encouragement from a phase two perspective,” he said.

Two weeks after the briefing, BHP revealed what appeared to be problems at the Burrokeet well, which was started on August 10.

It said the original well had been suspended and was waiting to be plugged and abandoned. Drilling started at Burrokeet-2 on August 18 and was continuing.

The Wildling appraisal well had been scheduled to start in ­November, so is now running a couple of months behind.

Wildling is being drilled after the Caicos well, 160km south of the Louisiana coast, discovered oil in multiple horizons.

BHP chief executive Andrew Mackenzie has said he wants to boost the company’s exposure to offshore conventional oil, as ­opposed to the shale oil it has heavily invested in for little return.

BHP spent $US20 billion on shale acquisitions in 2011 and nearly as much again investing in them. Mr Mackenzie has said he wants to quickly test the company’s exploration prospects as a priority over acquisitions.

Last month, BHP struck a farm-in deal on the 485-million-barrel Trion discovery with Mexico’s national oil company Pemex.

BHP will pay $US52m cash and spend $US320m over three years on the Gulf of Mexico discovery, with the aim of proving up an oil project that could deliver 120,000 barrels a day of oil by 2022, with BHP owning a 60 per cent share.

Source: http://www.theaustralian.com.au/busines ... 48f4c2a118

[Numb3r4]

Well at least some news isnbeing generated.

[The_Honourable]

weeeeyyyy...

Trinidad squandered US$77B in oil revenue between 1999 & 2016 – TT Economist

A Trinidadian Economist is urging Guyana not to make the same mistakes the twin island republic has made in the management of revenue generated from petroleum production, and the neglect of other sectors of the economy.

Dr. Roger Hosein, an Economist at the University of the West Indies St. Augustine Campus, said between 1999 and 2016, Trinidad received approximately 90 billion US dollars in economic rents, most of which was squandered.

Of the 90 billion US dollars collected, he said about 5 billion US dollars exist in the country’s Heritage and Stabilization Fund while 8 billion US dollars is part of the stock of international reserves. “That leaves 77 unaccounted for. That 77, I think, was just squandered and wasted. It was poorly spent,” Dr. Hosein told an audience in Georgetown Guyana, gathered for a lecture organized by the Guyana Oil & Gas Association (GOGA) last Wednesday.

More: http://oilnow.gy/featured/trinidad-squa ... economist/

Video clip:

[Miktay]

^^Am not surprised. Per the Ballah report 2 out of every 3 dollars earned in the 70s were stolen or wasted...

Check out Afra...

[wickedtuna]

Diversify to legalize Marijuana like some US states once it is kept for home use only and certain quantities. .......just imagine the revenues .....witco gone ...#legalizeit....I don't smoke btw

[Redman]

Legalized weed will command lower prices.
Supply will increase since the risk is now gone

[sMASH]

Having cigarettes and rum legal, and weed illegal is madness.
They can regulate the amount anyone can grow, keep it to back yard sizes. And regulate how much can any one can have in their possession.

Any other larger sizes of feilds, just license it specifically for export. Anything for local consumption should be kept to a minimum, and usage kept to a minimum.

If ur found in possession of more, it gets confiscated and three fifth time is a ban or even harsher punishment.

[pugboy]

it may cause problems,
the many thousands of young boys selling on the block will have reduced profits
they may revert to general banditry

Legalized weed will command lower prices.
Supply will increase since the risk is now gone

[Redman]

Any estimate should be volume based and not price based.

[drchaos]

Price may actually increase due to taxation ...

How you guys think legalized weed will actually go down in sweet T&T?

The 1% will move in to control the supply.

This is how business operate here, there will be expensive licenses to grow and sell.

[fallen_angel]

You sure the 1% not already controlling the supply?

[hong kong phooey]

Ah hear the oompa loompa want to legalize robbery so he could tax it and reduce unemployment in one go

[bess almera]

Why is government looking to tourism as one of this economy's diversification means? I ask this in light of the current issues relating to crime, which (in my opinion),acts as a deterrent to foreigners.

I'm finding it difficult to grasp the rationale behind this.

[Turbostarr]

I always wondered why our national oil company didn't have a research and development section looking into the development of renewable sources of energy such as wind, solar etc...they could have also done it in partnership with other energy companies...what you guys think about this...pie in de sky thinking?

[RedVEVO]

I always wondered why our national oil company didn't have a research and development section looking into the development of renewable sources of energy such as wind, solar etc...they could have also done it in partnership with other energy companies...what you guys think about this...pie in de sky thinking?

The Gov't is not progressive . They are a law onto themselves with the investments and spending of tax payers $$$.

Each party thinks the $$$ from oil etc., belongs to them and not the people of TT.

They waste until the economy goes in a mayhem situation . Then they panic and tax and devalue etc.

Many private companies have diversified but they keep quiet.

Since why brag . You will get tax man at your door.

[Dizzy28]

I always wondered why our national oil company didn't have a research and development section looking into the development of renewable sources of energy such as wind, solar etc...they could have also done it in partnership with other energy companies...what you guys think about this...pie in de sky thinking?

BP use to offer grants to UWI for work in renewable energy.
There is the renewable energy steering committee in Min of Energy

But key to everything is the approximately US$0.03/kWh we pay for electricity from NG as opposed to whatever higher costs it may entail from anything else.

[Turbostarr]

Yes I understand that cost is prohibitive at this time but like most technologies over time cost becomes less as the technology becomes more popular...believe in france they want to ban all petro and diesel powered vehicles by 2040...that's just about 23 years away...it would be refreshing that trini could be progressive and step up with the times that are ahead...

[Miktay]

Yes I understand that cost is prohibitive at this time but like most technologies over time cost becomes less as the technology becomes more popular...believe in france they want to ban all petro and diesel powered vehicles by 2040...that's just about 23 years away...it would be refreshing that trini could be progressive and step up with the times that are ahead...

Progressive iz one thing...

Duncy iz another...

[cryotec]

what we could really offer to diversify the economy? the only two ting that comes to mind is cocoa export and tourism (ignoring crime and what not) but i feel that them two thing not going to make a dent to d gdp.

[Dizzy28]

what we could really offer to diversify the economy? the only two ting that comes to mind is cocoa export and tourism (ignoring crime and what not) but i feel that them two thing not going to make a dent to d gdp.

GDP isn't so much the problem as is the ability to generate foreign exchange. We are an import driven nation and we utilise the forex we earn to generate wealth elsewhere. As is stands, in 2015 energy accounted for 32% of GDP and in 2016 Energy accounted for 18%. However the Services sector in each year were 61 and 71% respectively. The services sector is made up of -
Electricity and Water
Construction and Quarrying
Distribution and Restaurants
Hotels and Guest Houses
Transport, Storage& Communication
Finance-Insurance, Real Estate
Government
Education &Cultural Services
Personal Services

We need to get industries able to replace the forex we are not earning anymore to enable our buyer/seller business class and consumer centric population to continue operating as normal.

[eliteauto]

Our best bet is to become a service economy as our major secondary earner and focus on MICE tourism as our third

[cryotec]

yea gdp is not the correct word that i should have used but the question still stands; what do we have to offer that could generate a meaningful amount of forex, keeping in mind that we are competing with other countries who have the numerous advantages over us (advanced tech, skilled labour, cheap labour, economies of scale etc.)

if we could reach US levels of revenue from tourism, get thruu

https://www.mapsofworld.com/world-top-t ... urism.html

[Dizzy28]

yea gdp is not the correct word that i should have used but the question still stands; what do we have to offer that could generate a meaningful amount of forex, keeping in mind that we are competing with other countries who have the numerous advantages over us (advanced tech, skilled labour, cheap labour, economies of scale etc.)

if we could reach US levels of revenue from tourism, get thruu

https://www.mapsofworld.com/world-top-t ... urism.html

As the former CEO of GE once said - "If you don't have a competitive advantage, don't compete"
It pains me when I see successive Governments tout all kinda industries for development in ICT just because its a hip sector. On a pure numbers basis we graduate small numbers of IT talent making competition that much harder.

However where we do have an advantage is location. We are out of the hurricane belt (essentially), we have the Gulf of Paria. What we should focus on are service industries for the Maritime sector. Those ships parked offf PoS for the past 2 years belong to Transocean (same company that owned the Deepwater Horizon). The rent to cold stack as they as doing now is in the thousands of US$ per day per ship.
Then there are dry docking, bunkering etc.

[Redman]

The three dry dock plans that I've seen have all hung up due to politics.

If the GORTT would get out of the way....we would have been well on the way.

[sickbad]

Price may actually increase due to taxation ...

How you guys think legalized weed will actually go down in sweet T&T?

The 1% will move in to control the supply.

This is how business operate here, there will be expensive licenses to grow and sell.

You'd think for a third world country like us with broadband, flights to EU and US won't pioneer da chronic like JAM?

We could be hosting the craziest tourism parties with being PRO-CANNA .. Like Jamaica is, and their tourism revenue is what they survive on.

Need I quote the state up north "Colorado has harvested half a billion dollars in taxes and fees since it legalized recreational weed.
VS Strategies, a pro-legalization research company in Denver, says the state has pulled in $506 million since retail sales began in January 2014. That includes taxes and fees from medical marijuana, which was legalized years earlier, but the vast majority of the revenue came from recreational.
Colorado was the first state to legalize recreational weed, so its market is the most mature. And lawmakers and entrepreneurs in other states, and other countries, look at Colorado as a measuring stick"

Meanwhile police burning fields, no arrests, jails flooded and court cases backed up years because the plant like substance evidence was misplaced conveniently by 5-0 who done already gave it back to the dealerman who pays the 5-0 royalties for protection. I think they like it illegal bro for stupid selfish reasons

[adnj]

The economy is currently diverse trending. Trinidad is an energy exporter. Using the energy locally for manufacture of export items (manufactured goods, packaged foods). Use the educated work force for service jobs (higher education institutions, banking services, shipping services, administrative services).

Grow the trade surplus by improving housing and infrastructure to attract foreign companies. Offer taxation relief to those foreign offices that become housed here that service countries outside of Trinidad.

[Drea]

yea gdp is not the correct word that i should have used but the question still stands; what do we have to offer that could generate a meaningful amount of forex, keeping in mind that we are competing with other countries who have the numerous advantages over us (advanced tech, skilled labour, cheap labour, economies of scale etc.)

if we could reach US levels of revenue from tourism, get thruu

https://www.mapsofworld.com/world-top-t ... urism.html

As the former CEO of GE once said - "If you don't have a competitive advantage, don't compete"
It pains me when I see successive Governments tout all kinda industries for development in ICT just because its a hip sector. On a pure numbers basis we graduate small numbers of IT talent making competition that much harder.

However where we do have an advantage is location. We are out of the hurricane belt (essentially), we have the Gulf of Paria. What we should focus on are service industries for the Maritime sector. Those ships parked offf PoS for the past 2 years belong to Transocean (same company that owned the Deepwater Horizon). The rent to cold stack as they as doing now is in the thousands of US$ per day per ship.
Then there are dry docking, bunkering etc.

Is there a way to get the ACCURATE figure on this? Because I've heard conflicting stories on this (namely from one person in the energy sector and someone who frequents ddi for business). Its alleged we honestly not charging much for those companies to dump their idle rigs in out waters which is why there are so many. Other countries would charge a hefty sum but I heard we charging cheese and crackers so the companies are all too happy even from far away as Brazil.