Energy industry still has some life

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The Trinidad an Tobago economy continues to decline as a result of our dependency on the oil and gas sectors to maintain a Forex cash flow.

The collapse has started. Only increases in commodity prices can soften the position a bit temporarily.

Investors who buy blue chip stocks to subsidise their pensions and NOT obtaining dividends, will place serious challenges on pensioners to survive in households with all the variances skyrocketing.

Banks will also follow the trend, denying their shareholders a dividend.

Trinidad and Tobago must begin to build its economy by being cautious. As the price of oil continues to stay above US$50, the small independent producers will be incentivised to increase their production by drilling new wells.

This will in turn create more activity in the drilling and production service sectors, and hopefully create more jobs that in turn will bring more PAYE and profit taxes to the Government.

This SPT incentive should be initially only for two years, but it is hoped that SPT will be removed completely, or would only start above US$80/Bbl where oil producers start making “windfall profits.”

Trinidad has been producing oil and gas for over 100 years, and therefore additional incentives should be given to Oil Companies to explore deeper or to increase production through EOR Projects.

Does T&T still have life left in our energy sector—Definetly yes.

Gordon Laughlin