BPTT head: Natural gas boom over

[janfar]

THE country’s natural gas bonanza is over and there are now key decisions that must be made with a sense of urgency, bpTT chairman Robert Riley told energy industry stakeholders yesterday.

He said opportunities in the past for making easy money from natural gas were gone and ’we can no longer depend on the early advantages we had as first mover into the United States LNG market, as we are now facing serious challenges’.

Riley said the country made plans beyond what the hydrocarbon industry could sustain and there was the need to make a new oil or gas find in short time.

Riley was addressing members of the American Chamber of Commerce on ’The Future of the Gas Business in Trinidad, Time to Rethink’.

The meeting was held at Cara Suites Hotel, Claxton Bay.

Riley said the situation was critical and called for frank and open debate about the future.

He said: ’In the new global environment, Trinidad must adjust to a world market that is characterised by low natural gas prices, a competitive global LNG market that is becoming more integrated and where the system on the long term contract pricing will continue to erode.’

Riley suggested that key players in the industry ’become more efficient producers, and adapt to the environment if we are to derive the maximum revenue from gas’.

He said: ’What we have to do is to focus on efficiency and revenue as opposed to growing volumes.’

The local sector now produces four billion cubic feet a day of gas, with approximately 60 per cent being exported as liquified natural gas (LNG), 27 per cent used in the petrochemical sector, and seven per cent in power generation, he said.

Riley said: ’Although there is an increase in gas production, much of this LNG is coming into the market at a lower cost from associated gas, a by-product of primarily rich oil reservoirs.’

Riley recalled a recent announcement from the Ministry of Energy stating that ’there is enough gas resources to meet the strategic projects that government is committed to 2028’.

He said: ’The ministry’s estimate of proved gas reserves stands at 15.37 trillion cubic feet, while probable gas reserves are at 8.45 trillion cubic feet, and possible gas reserves at 6.39 trillion cubic feet.’

He said in this context, ’Trinidad and Tobago has already gone ahead of plans and expenditure patterns beyond what the gas industry and hydrocarbon industry can enable the country to sustain’.

The energy sector accounts for 45 per cent of Gross Domestic Product, 80 per cent of exports and 58 per cent of government revenue.

He said in such a situation: ’Our future cannot depend on existing reserves base and we clearly need a new gas or oil province within a critical time frame.’

Riley predicted that ’over the next ten years we will have the challenge of steep declines in existing producing reservoirs and that it would take US$500 to $600 million in annual capital investment to sustain our current production capacity’.

http://www.trinidadexpress.com/index.pl ... =161614286


And they thought it would last forever. Brace for panic.

[JD......]

What about the open block on the East coast? less than 2/3 of the east coast has been explored far less sold to bidders, as up Tobago side has empty bocks than do show potential from prior well tests.
this is a good way to think and i hope the goverenment curves their spend habits.

Next 2 steps should be:

Desalination plant
Agriculture

[janfar]

What about the open block on the East coast? less than 2/3 of the east coast has been explored far less sold to bidders, as up Tobago side has empty bocks than do show potential from prior well tests.
this is a good way to think and i hope the goverenment curves their spend habits.

Next 2 steps should be:

Desalination plant
Agriculture
Tourism

Fixed.

[JD......]

have to fix the enviromental problems and poverty (peoples attitude) before than can take off.

at least, with the lack of agri. the top soil will keep

[neoise]

Sadly this comes as no surprise - its been on the wall a while now. What does the government do when faced with this info? they bullsheit the ppl and step up production when they could be cutting expenditures, diversifying. reinventing the cane industry to supply biofuel............. stueps I gone again

[peacelove]

It's not really surprising to hear this, the pnm has no vision. any responsible government would diversify their country assets/strengths and not have it solely depend on the oil and gas industry. The Smelter idea is a mess and no one wants it besides Manning and everyone who taking sou-sou from the treasury.. Agriculture should've always been a key focus and Caroni should've never been closed. As the poster above mentioned... using sugar cane to make biofuel could've been used. Trinidad has real potential to be a great country but mismanagement and bad government ruins it.

[r3iXmann]

What about the open block on the East coast? less than 2/3 of the east coast has been explored far less sold to bidders, as up Tobago side has empty bocks than do show potential from prior well tests.
this is a good way to think and i hope the goverenment curves their spend habits.

Next 2 steps should be:

Desalination plant
Agriculture

ECMA still has lots of oil & gas

i heard (and what riley just confirmed) is that there just isn't enough demand to justify drilling

[audiomaniac]

ECMA still has lots of oil & gas

NCMA also has alot of activity currently with BG having a number of projects in the pipeline for both the installations. They are obviously maximizing the use of their reserves.......... i wukking late from today yes.

[JD......]

they dont have nuff rigs in the area, companies wait until a rig is brought to T&T or venne and ocne its free they'll jump at the opportunity.

also it dont make sence to produce when selling price is so low.

[Terran]

Gee... I wonder how the government is going to sustain the income to be able to spend spend spend? Last year they introduced property tax.

Another attack on hard-working taxpayers on the horizon, I guess - be it unemployment or more taxes. Or both.

[cornfused]

While we outline areas for potential expansion as Agriculture , this would aid mainly in a import substitution manner keeping more of the large amount we currently spends of foreign foods here , but as a true engine of economic growth, i am currently unsure . Can any one in the Caribbean grow more food than Guyana ?

I think a real possibility of another key contributor to GDP, lies in the IT/ICT area

[janfar]

Rig location is minor still. At the price NG selling for no company can justify further exploration. Most companies are doing workovers of existing wells to increase flow, thats it.

BP has already stated that after the Sav project they will shut down D&E for 6 months and then re-evaluate the market then. This was in December. Doubt they have changed that.

Trinidad have many other natural resources that we can depend on but if the government doesnt step in now we may not have enough money in the treasury to support it when really needed.

[RBphoto]

BP has already stated that after the Sav project they will shut down D&E for 6 months and then re-evaluate the market then. This was in December. Doubt they have changed that.

So what Worley hiring like Engineers going out of style for?

[crazybalhead]

Bp has had those plans for over two years now. After that is level drilling IWMC.

[JD......]

both the scorpion and ensco 68 came from venne for eog, the east coast is maily deep water and will require semi subs for drill ships, and the cost to mobilize and cost per day are hugh.

everyone one wants to exploite the shallow reservs first and leave deep water for last, but there still is reserviors out there, esp higher up in the caribbean


Cuba, Jamacia etc

[crazybalhead]

They drilling in Cuba long time now.

The Scorpion only has one approved well.

[Chemical]

Robert don't need to tell T'dad that. With Russia & Qatar now on stream & more coming from the middle east just see how low natural gas will reach.

Take what Riley says with a pinch of salt, he full of hot air & S hit

[evo-STI-k]

Doh worry, between the Double personality Mr BIG and he Golden boy with he retarded family they produce enough hot gas to sustain us!

[janfar]

Who's Worley?

Im just relaying what the Drilling Superintendant told us in a meeting in December.

[JD......]

yeh they drilling in cuba a while now, time for well testing/apprasals should be late this year.

i really doh care anymore what the government does again, people allowing them to do sheit.

[janfar]

Cuba??? Hmmmmm!!!

[Vat19]

the day this GOVT came in the first thing they did was close down Caroni .... and we all know why they did it. The only way anything is going to change in Trinidad is to change the Govt. PM is not going to develop any other industry..... only oil because it keeps his friends employed.... and thats it. it's as simple as that. Trinidad has so much potential to develop so many other industries, we have resourses comming out our ears, the problem this country has is the narrow mindedness and racial tenancies of this Govt.......... ( sorry about spelling) so guess where we going? You think the Govt does not know... the problem is they don't care! A perfect example... Petrotrin has 6,000 employees.... they only need 1,600 .... and thats only one company.

[Rainman]

Who's Worley?

Im just relaying what the Drilling Superintendant told us in a meeting in December.

Worley Parsons, engineering firm.

[JD......]

off track, but food for thought

http://www.usgs.gov/newsroom/article.asp?ID=1911

[H.S.E GuY]

I think that some of us are missing the big picture, Mr. Riley is being very frank with his views and letting us know and see the real world unlike Mr. Enill, Manning and Browne. It seems that their vision of 20/20 is based on the Manning in Wonderland version.

When T&T got into the LNG market they got in at a good time and yes some money was made, other countries got in the LNG market also as someone had mentioned earlier, obviously with more players on the market the price has to drop.

Whilst yes all the big names are here - BPTT, EOG, ELF etc, there has been no active drilling programs in TNT both onshore and offshore and yes who has been drilling are more or less fulfilling contractual agreements.

All the offshore blocks that went out for bids the deep water and ultra deep blocks NOT one was looked at by investors - to do business the Govt is just not making it attractive to investors, I mean you have to spend $100 million to drill a well in some what already depleted reservoirs, hoping to make a big find, Yet you have royalties to be paid to Govt, Petrotrin, Green Fund etc. Yes they make get some incentives but that nothing really to talk about.

So yes Mr. Riley is right about what he is saying the gas is running out.

[janfar]

off track, but food for thought

http://www.usgs.gov/newsroom/article.asp?ID=1911

Only to make our market even more competitive and drive the prices down...

Spread yuh wings boys, spread yuh wings and fly...

[buzz]

so NIS goin up again ?

[crazybalhead]

I think that some of us are missing the big picture, Mr. Riley is being very frank with his views and letting us know and see the real world unlike Mr. Enill, Manning and Browne. It seems that their vision of 20/20 is based on the Manning in Wonderland version.

When T&T got into the LNG market they got in at a good time and yes some money was made, other countries got in the LNG market also as someone had mentioned earlier, obviously with more players on the market the price has to drop.

Whilst yes all the big names are here - BPTT, EOG, ELF etc, there has been no active drilling programs in TNT both onshore and offshore and yes who has been drilling are more or less fulfilling contractual agreements.

All the offshore blocks that went out for bids the deep water and ultra deep blocks NOT one was looked at by investors - to do business the Govt is just not making it attractive to investors, I mean you have to spend $100 million to drill a well in some what already depleted reservoirs, hoping to make a big find, Yet you have royalties to be paid to Govt, Petrotrin, Green Fund etc. Yes they make get some incentives but that nothing really to talk about.

So yes Mr. Riley is right about what he is saying the gas is running out.

Only when yuh doing sheit.

[janfar]

I think that some of us are missing the big picture, Mr. Riley is being very frank with his views and letting us know and see the real world unlike Mr. Enill, Manning and Browne. It seems that their vision of 20/20 is based on the Manning in Wonderland version.

When T&T got into the LNG market they got in at a good time and yes some money was made, other countries got in the LNG market also as someone had mentioned earlier, obviously with more players on the market the price has to drop.

Whilst yes all the big names are here - BPTT, EOG, ELF etc, there has been no active drilling programs in TNT both onshore and offshore and yes who has been drilling are more or less fulfilling contractual agreements.

All the offshore blocks that went out for bids the deep water and ultra deep blocks NOT one was looked at by investors - to do business the Govt is just not making it attractive to investors, I mean you have to spend $100 million to drill a well in some what already depleted reservoirs, hoping to make a big find, Yet you have royalties to be paid to Govt, Petrotrin, Green Fund etc. Yes they make get some incentives but that nothing really to talk about.

So yes Mr. Riley is right about what he is saying the gas is running out.

Only when yuh doing sheit.

Corek iz rite!!!

[wagonrunner]

I think that some of us are missing the big picture, Mr. Riley is being very frank with his views and letting us know and see the real world unlike Mr. Enill, Manning and Browne. It seems that their vision of 20/20 is based on the Manning in Wonderland version.

When T&T got into the LNG market they got in at a good time and yes some money was made, other countries got in the LNG market also as someone had mentioned earlier, obviously with more players on the market the price has to drop.

Whilst yes all the big names are here - BPTT, EOG, ELF etc, there has been no active drilling programs in TNT both onshore and offshore and yes who has been drilling are more or less fulfilling contractual agreements.

All the offshore blocks that went out for bids the deep water and ultra deep blocks NOT one was looked at by investors - to do business the Govt is just not making it attractive to investors, I mean you have to spend $100 million to drill a well in some what already depleted reservoirs, hoping to make a big find, Yet you have royalties to be paid to Govt, Petrotrin, Green Fund etc. Yes they make get some incentives but that nothing really to talk about.

So yes Mr. Riley is right about what he is saying the gas is running out.

Only when yuh doing sheit.

And yuh eh post yuh catalog?
nah man, yuh letting go an opportunity dey.