amcham t&t linkage q2 2013

Special Feature: energy & competitiveneSS Your door to opportunities in a globalised environment | Q2/2013

To be Truly SuSTainable by Gerry C. brooks 4

TeChnoloGy, The Key To CompeTiTiveneSS by Keith bally 14

life afTer foSSil fuelS by Karlene ali and Shivanand pancham 16

In thIs Issue:

EnErgy and CompEtitivEnEssCan WE KEEp tHE FLamE BUrning?

amCham T&T linkage Q2/2013 1

sustaInabIlIty Is a new Idea to many people, and many fInd It hard to understand. but all over the world there are people who have entered Into the exercIse of ImagInIng and brIngIng Into beIng a sustaInable world. they see It as a world to move toward not reluctantly, but joyfully, not wIth a sense of sacrIfIce, but a sense of adventure. a sustaInable world could be very much better than the one we lIve In today.

Donella h. meadowsAmerican environmental scientist

2 amCham T&T linkage Q2/2013

Globally, energy has become one of the strategic

factors driving decision-making. Increasingly

businesses, consumers and governments are

considering the energy efficiency of the products

and services they buy, use, sell and invest in.

It (energy) has become a strategic factor in

competition!

As an energy-producing country, we

understand this fact very well, as our energy

sector and the consequent availability of relatively inexpensive energy has

given our business sector a competitive edge over other countries within

the region. Certainly it has been a factor which has encouraged foreign

direct investment and assisted us in weathering the effects of the global

economic downturn.

We are now at a juncture in our development where we must refocus

and change the way we operate to continue to be competitive. Energy

efficiency is one of the key means through which we can achieve a

competitive advantage and generate growth. The long and short term

cost savings of using less energy or using it more efficiently have been

proven, however, in many instances companies are either blinded by the

immediate bottom line issues associated with such transformations or are

not inclined to move in this direction due to the abundance of relatively

inexpensive energy. This is where the Government must play a pivotal

role in providing an environment which drives businesses and indeed the

nation to conserve. It is also essential that Government set policies that

encourage greater investment not only in renewable and other sources of

clean energy but which encourage companies to continue to invest and

generate positive returns from our more mature assets.

These are just some of the issues which are explored in this issue of

Linkage. I encourage you to read the varied contributions which look at

our energy sector and our drive to become more efficient, productive

and sustainable.

LinkageVolume 2/2013 • ISSN 1814-1242 AmCham Trinidad & Tobago

62 Maraval RoadPort of Spain, Trinidad & Tobago, W.I.Tel: (868) 622-4466 / 0340 / 628-2508 Fax: (868) 628-9428Email: [email protected]: www.amchamtt.com

Welcome from the editorDesiree Gobin-Seecharan

ConTenTS

Design & Layout: Paria Publishing Co. Ltd.Printing: Caribbean Printing Technologies Ltd.

The opinions expressed in the editorial contributions in Linkage may not necessarily be those of AmCham T&T. We welcome any comments you might have! Simply email a “Letter to the Editor” to the AmCham T&T Secretariat—[email protected].

specIal feature:

energy & competItIvenessTo be Truly Sustainable by Gerry C. Brooks 4managing mature oil and Gas fields by Allan Russell 12Technology, the Key to Competitiveness by Keith Bally 14life after fossil fuel by Karlene Ali and Shivanand Pancham 16renewables by Marcia Maynard 20Cheap Gas paid for with happiness by Dennise Demming 22The shifting Dynamics of Supply & Demand for lnG in the americas by Nigel Darlow 24achieving Sustainable Growth by Atiba Phillips 26Transparency for extractive industries by Mark Regis 28reduce Carbon while saving $$$ by Michael J. Shand 30oil boom in Suriname? by Jason Cox 32

road safetyyoung Drivers and alcohol by Brent Batson 35

busInessare you listening 2 your iT Department? by Andrew Galt 36Corridor Coaching by Janice Learmond-Criqui 38

thought leadershIp3D printing and the future of consumerism by Richard Yonck 40

polIcy Issuesbattling counterfeit medicines by Rodolfo Lambour 42

amcham t&tViewpoint (English) 8Punto de Vista (Español) 10US Vice President JOE Biden Visits Trinidad and Tobago 11AmCham T&T on the Inside 37AmCham T&T'S New Members 39AmCham T&T Upcoming Events 2013 44

amCham T&T’s mission

To be the preferred private sector business organisation for the stimulation of free and fair trade and investment within the Americas and the Caribbean.

AmCham will add value to our member companies within the following key focus areas:

Enhancement of Competitiveness Generation of new business and market access for services/goods Influence on policies and legislation Transfer of Knowledge Contribution to Sustainable Development

amCham T&T’s vision

advertise on the amcham t&t website for very low rates.

contact melissa pierre, Trade and Communications officer at [email protected]

specIal feature: energy and the energy sector


Special Feature: energy & competitiveneSS

continued on page 6

1. sItuatIon analysIs – where are we today? With the exception of Guyana and Suriname, Caribbean economies are afflicted by low growth, and high debt levels. Growth in Jamaica was 1.5% in 2011 and 0.1% in 2012, with Debt to GDp of 146.6%. in 2012, barbados exhibited growth of 0.6% with debt increasing from 83% to 88% (80.2%-83.4% RBL monitor). Grenada’s debt level is 140% with unemployment at +30%.

At least five countries are using IMF facilities. Suriname and Guyana provide beacons of optimism with growth rates of 4.5% and 3.3% respectively in 2012. Worrying however, is the fact that currency slippage has again occurred in Jamaica 6% (USD1: JD100). Currency slippage has also occurred in Guyana from GYD200 to GYD206: USD1. The ‘delicate political situation’ and the recent slippage of international gold prices to US$1,230 must be managed in Guyana to ensure continued growth.

Locally, our macroeconomic fundamentals are still solid. Unemployment is 4.9% (June

2012). Inflation is down to 6.8% (March 2013). T&T boasts 10.4 months of import cover at $9.2b (Dec 2012). The HSF fund at $5.4b is still untouched. Henry Hub Gas prices are $4.15 and Brent Crude is $100/per barrel. At half year, the Composite Index and the All T&T Index grew 5.8% and 7.8% respectively. At half year, the traded volume of shares increased 49.9% with 40.5m shares crossing the floor of the exchange. Continuing accommodative monetary policy and low public debt of 46.6% still leave fiscal space to engineer a strong, enduring platform for Sustainable Growth and Development. As we look ahead, lead indictors such as increased cement sales- up 12%; block sales- up +20%

and three recent hydro carbon finds - Bayfield

Energy, Petrotrin and BPTT provide further cause

for confidence. Rig days and rig activity are at

the highest levels since 2007. Well capitalised

banks, accommodative credit with historic

low mortgage and prime interest rates further

enhance confidence. Q1 2013 data from the

Central Bank suggest growth of 1.6%. As the

young people say “all good!”

But I caution these are tenuous shoots of

growth which must be properly “manured and

cultivated.” If not, they will quickly perish. Recall

the TCL strike extinguished growth in Q1 of

2012! BP, BG and other energy companies’

maintenance programmes adversely affected GDP

in 2012. Our small economy is easily susceptible

to domestic and external shocks. To be truly

sustainable…Opposition and Government must

think and execute strategy beyond the traditional five year election periods. It will also require a maturity from parties to continue good programs not commenced by them.

2. assessment of our competItIveness

How do we stack up with the Peer Group of developing countries seeking to achieve sustainable growth and developed status?

• Global Competitive Index - In 2009/2010 we were ranked at 86, 2011-2012 we ranked 81; 2012-2013 we slipped to 84. We are not in top flight and trail Chile (no. 33); Panama (40); Colombia (69).

excerpt from the presentatIon gerry brooks delIvered at amcham t&t's july meetIng themed "ImperatIves for competItIveness and sustaInable development"

by gerry c. brooks Group Chief Operating Officer & Sector Head, Manufacturing ANSA McAL Limited

To be Truly susTainable

To be Truly susTainable



to be truly sustaInabe (contInued from page 4)

• Ease Of Doing Business - We are positioned at no. 69/185 for 2013. In 2012 we were at 70/185. Again we are not in the top flight. Good work is taking place on the Single Electronic Window and speed of company incorporations. But comparatively, we are mid table.

• Corruption Index - 80/174 is our placement on this index. We have been in this range for quite a while.

If one looks at Foreign Direct Investment (FDI), in 2012 we attracted US$1.2b. The annual average since 2009 is US$806m. Comparatively, Chile and Columbia grew 5.5% and 4.0% respectively. Chile attracted US$28.15b in FDI coming from Japan, Sweden, Australia, Spain USA and Peru. Colombia grew at 4.0% in 2012 following 6.6% in 2011, with FDI of US$13.2b.

A comparison to a Peer Group of countries Botswana, Chile, Colombia, Oman, Qatar – all energy based countries, whose economies slipped to negative growth in 2009 – have all recovered and are +3%. We are not! T&T has not been able to return to +4% levels prior to the Global meltdown. In fact, mean growth over the period is negative (-1.3%).

Some key indicators include key productivity data points e.g. absenteeism levels. These are +6% nationally. The number of holidays locally is 16, we average more than most countries USA – 10 days; Canada – 8 days. To survive and thrive all stakeholders must work to contain these and drive productivity. More important, and increasingly, major players are entering our markets – sometimes in violation of our labeling and other agreed standards and competing. In short, we have to up the productivity game!

change the plannIng and budgetIng methodology

Neither Sustainable Development nor Competitiveness will be achieved in a one year period. It is absolutely necessary that we go back to a three to five year planning cycle with clear annualised milestones and Key Performance

Indicators (KPIs). Coupled with this, it is important that midterm reviews be hardcoded into our budget process. The Minister of Finance needs to be congratulated as he sought to do this in 2013. Reports must be ventilated and debated in Parliament, subjected to analysis by one’s peers. Debate and midterm reviews must be extended to include all Ministries. State Enterprises should also be required to report quarterly and semiannually. This is public money…the standard for a State Enterprise and a Public Company should and must be similar!

Equally importantly, economic planning must be predicated on accurate data that must have integrity. The CSO and Central Bank data points differ widely on key areas and do not inspire confidence as a basis for proper planning. Proper planning can only be underpinned by accurate, timely data.

rethInk, reengIneer carIcomWhat is clear is that “the Caricom model must

be reengineered completely.” While there has been some success in Caricom at the functional cooperation level, the current construct of Caricom is “too slow both in terms of policy formulation, decision making and execution.” This is not a condemnation of Caricom, but a constructive call for “us to rethink, refashion and reengineer the Caricom model.”

In the new global environment of global trading mega blocks, island sovereignty has to be rethought. Equally important, technology is also redefining the concept of sovereignty, market access and systemic risk. Caricom at “40 years” has to rethink and reengineer its model. Caribbean territories are burdened with the cost of “expensive state apparatus” with high debt and unemployment levels. Many of the CSME objectives have not been realised. Are we closer to a single regional stock exchange? Why have we not acceded to the CCJ to which every country has pledged funding? Why are we not implementing a harmonised agricultural strategy using the vast acreage of Guyana and Belize with its potential for mechanisation and automation?

Why do we not have harmonised regional financial services legislation with one regional regulator? This saves cost, harmonises rules and helps to manage regional systemic risks. We are all losing money in the air travel business! Intra regional travel still requires a passport and non-degree workers moving from territory to territory still face significant challenges even when sponsored by willing employers. To be competitive, the best talent must be available to drive the most lucrative opportunities. It would be useful to invite key executives from the Private Sector, Civil Society and Labour to serve on a working committee to share ideas and to engage on how this public/private partnership can reshape itself leveraging the best ideas.

Equally important, large conglomerates, financial and other institutions have recognised that they have “outgrown Caricom markets.” To maintain and accelerate growth rates, extra-regional growth markets must be tapped. This requires redefinition of treaty arrangements, planned trade missions, accurate and timely market data and an excellent ICT framework. Panama, Chile, Columbia, Guyana, Suriname and Africa offer wonderful opportunities. The recent move by Republic Bank into Ghana is an excellent example of ‘daring to break into a new market.’

must grow revenue and dIversIfy

Energy revenue accounts for 40% of local GDP. Reserves to Production Ratio stands at 9 years. Over the last four years, Trinidad and Tobago's GDP has averaged -1.3%. Energy Sector GDP from 2009 to 2012 has been -1.8%, 3.2%, -3.9% and -1.0% respectively. Crude oil production in Q1 2013 is 81,573bpd down 42% from 142,000bpd in 2007. Positively Ammonia, Methanol and Urea production increased in Q1 2013 by 16.6%, 11.4% and 15% respectively. Export volumes also increased 11%, 14.4% and 38.5% on a low 2012 base. Gas utilisation by the downstream sector also increased. However, planned maintenance in Q4 will likely curtail output.

a comparIson to a peer group of countrIes botswana, chIle, columbIa, oman, Qatar – all energy based countrIes, whose economIes slIpped to negatIve growth In 2009 – have all recovered and are +3%. we are not! t&t has not been able to return to +4% levels prIor to the global meltdown. In fact, mean growth over the perIod Is negatIve (-1.3%).

continued on page 34


vieWpoint BY HUGH HOWARDPRESIDENT OF AMCHAM T&T

it is beyond dispute that energy is essential to all economies, large and small, as it facilitates economic activities which influence the quality of life of citizens. however, very often the methods employed in producing this energy threaten the stability of eco-systems and the health and well-being of current and future generations.

Studies have shown that expanding production and consumption of fossil fuels

(e.g. coal, crude oil and natural gas) have contributed significantly to the increase of man-made emissions of carbon dioxide and other greenhouse gases, urban smog and acid rain, among other ills. These environmental concerns have resulted in various international agreements and protocols (e.g. Kyoto), which require countries to switch from fossil fuels to other sources that emit little or no noxious and greenhouse gases. Additionally, energy efficiency is promoted, so that goods and services can be produced and delivered with less energy, thereby contributing further to the diminution of carbon and other deleterious emissions.

The adverse environmental implications, ballooning costs of fossil fuels and recognition of the non-renewable nature of such energy sources have combined to create a greater awareness of the benefits of and need for cleaner and more sustainable sources of energy by most countries, particularly those that are not endowed with oil and gas. However, the pace of transformation is slow, as a vast number of fossil fuel-rich countries keep the cost of energy for their citizens artificially low by way of subsidies. This serves as a disincentive to research and development in the area of renewable energy, a view espoused by Professor Paul Krugman of the Woodrow Wilson School of Business, Princeton University, who said “I think so long as fossil fuels are cheap, people will use them and it will postpone a movement towards new technologies”.

Energy subsidies can be defined simply as any government measure that keeps prices for energy consumers below international market levels or reduces costs for consumers or producers. Conceivably, energy subsidies may be justifiable where social gain or environmental improvement exceeds economic cost—for example, where the subsidy assists in alleviating poverty or increases access to energy where a real need would otherwise not be fulfilled. Generally, the key to determining whether a subsidy is good or bad for mitigating climate change is whether the energy source it supports is more or less carbon intensive than the alternative. Various empirical studies provide strong evidence that the large subsidies to fossil fuel consumers worldwide contribute to higher greenhouse gas emissions and exacerbate climate change. Subsidies to support renewable energies and energy efficient technologies may on the other hand help reduce noxious gas and greenhouse gas emissions. It is to be noted, however, that some types of renewable energy sources may also have adverse environmental consequences, such as marring the aesthetics of the landscape and, in the case of bio-fuels, may encourage excessive use of chemical fertilisers.

In most instances, the net effects of subsidies are negative, as they tend to have adverse economic, social and environmental implications. Subsidies can place a heavy burden on government finances, weaken

the foreign trade balance and stunt the potential of economies. They can also lead to higher energy use and reduce incentives to conserve or use energy more efficiently. Where the price payable to producers is reduced to facilitate consumers, a subsidy may undermine energy providers’ return on investment and their ability and incentive to invest in exploration, new infrastructure and/or state of the art technology. As a result, it may encourage reliance on out-dated and dirtier technology.

Subsidies to manufacturers and other users of subsidised energy, which cushion them from competitive market pressures, tend to reduce incentives to be cost effective, resulting in less efficient plant operation. An unintended by-product of fuel subsidies is the smuggling of fuels to neighbouring countries, where selling prices are higher and illegal bunkering activities—a practice that is a matter of great concern to the authorities in Trinidad and Tobago, particularly with diesel.

Removing subsidies that are both economically costly as well as harmful to the environment would be a win-win policy reform. However, governments are often faced with awkward trade-offs between the economic and environmental benefits of removing or reducing energy subsidies and the social costs of higher fuel prices. These reforms may also have serious political consequences. The monetary value of subsidies tend to be very high—indeed globally they are estimated at US$1.9 trillion or 2.5% of global GDP—and are paid largely out of general tax revenues. These funds could be better used for health, education and infrastructure that would benefit the entire populace, improve living standards and productivity.

After years of recommendations from the various business Chambers and others, I am encouraged by action taken by the Government of Trinidad and Tobago in 2012 to commence the process of reducing the energy subsidy in an effort to contain the budget deficit and revitalise the economy. In 2012, the size of the energy subsidy was reported to be in the range of $3.4 billion annually. When compared with the size of the budgeted deficit of $7.669 billion or 4.6% of Gross Domestic Product, it is clear why on a simple dollar and cents basis the Minister of Finance & the Economy would wish to eventually eliminate this subsidy. Given the lessons gleaned from the experiences of Nigeria, India and other countries that have taken action to reduce their energy subsidies, the Minister of Finance & the Economy has adopted a moderate and phased approach to the removal of the fuel subsidy, commencing with a reduction in the subsidy on premium gasoline. This initiative signals to the populace Government’s intention to seriously address the problem in the medium-term.

Reforming the existing energy subsidies requires strong political will, tough decisions and should be part of a broader process of economic and social reform. Any negative impact of such reform can be ameliorated by the Government introducing timely compensating measures to support targetted vulnerable social groups or sectors.

AmCham T&T is supportive of a well-planned, phased approach to the energy subsidy reform and trusts that the appropriate mechanisms will be implemented to lower noxious gas and greenhouse gas emissions, generate greater energy efficiency, and encourage innovation and new technologies/industries towards a more productive and competitive Trinidad and Tobago.

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POR HUGH HOWARDPRESIDENTE DE AMCHAM T&T

no cabe duda de que la energía es vital para todas las economías, ya sean grandes o pequeñas, pues facilita las actividades comerciales que influyen en la calidad de vida de los ciudadanos. Sin embargo, los métodos empleados para producir esta energía a menudo amenazan la estabilidad de los ecosistemas y la salud y el bienestar de las generaciones presentes y futuras.

Los estudios demuestran que la expansión en la producción y consumo de combustibles fósiles (p.

ej. carbón, crudo y gas natural) han contribuido enormemente al incremento de las emisiones de dióxido de carbono producido por el hombre así como de otros gases de efecto invernadero, smog urbano y lluvias ácidas, entre otros males. Estas preocupaciones medioambientales han llevado a la firma de varios acuerdos y protocolos internacionales (p. ej. el protocolo de Kioto) que piden a los países cambiar de combustibles fósiles a otras fuentes que no emitan o emitan pocos gases nocivos y de efecto invernadero. Además, se promueve la eficiencia energética para que los bienes y servicios se puedan producir y brindar con menos energía, lo que contribuye a la reducción de emisiones de carbón y otras sustancias perjudiciales.

Las adversas implicaciones medioambientales, el costo cada vez más alto de los combustibles fósiles y el reconocimiento de la naturaleza no renovable de estas fuentes de energía se han combinado para crear una mayor consciencia de los beneficios y la necesidad de acceder a fuentes más limpias y más sostenibles de energía en la mayoría de países, principalmente aquellos que no cuentan con reservas de petróleo y gas. No obstante, el ritmo del cambio es lento ya que una gran cantidad de países con recursos petrolíferos mantienen el costo de la energía artificialmente bajo para sus ciudadanos por medio de subsidios. Este hecho disuade la investigación y el desarrollo en el área de energía renovable, punto de vista defendido por el profesor Paul Krugman de la escuela de negocios Woodrow Wilson, Universidad de Princeton, quien afirma: “Pienso que mientras los combustibles fósiles sean económicos, la gente los seguirá utilizando y esto pospondrá el avance hacia nuevas tecnologías”.

Los subsidios energéticos se pueden definir sencillamente como cualquier medida por parte del gobierno para mantener los precios para los consumidores por debajo de los niveles de los mercados internacionales o para reducir los costes para los consumidores o productores. Se entiende que los subsidios energéticos se justifican cuando los beneficios sociales o medioambientales exceden los costos económicos. Por ejemplo, si el subsidio ayuda a aliviar la pobreza o mejora el acceso a energía a aquellos que realmente la necesitan y que de otro modo no podrían conseguirla. Por lo general, la clave para determinar si un subsidio es favorable o no para mitigar el cambio climático es analizar si la energía que provee produce más, o menos, emisiones que la alternativa. Varios estudios empíricos proporcionan evidencia sólida de que los grandes subsidios a los consumidores de combustibles fósiles a nivel mundial contribuyen a niveles más altos en las emisiones de gases de efecto invernadero y agudizan el cambio climático. Los subsidios a energías renovables y tecnologías energéticamente eficientes pueden, por el contrario, ayudar en la reducción de las emisiones de gases nocivos y de efecto invernadero. Cabe notar, no obstante, que algunas fuentes de energía renovable pueden también traer consecuencias adversas para el medio ambiente, tales como estropear la estética de los paisajes y, en el caso de los biocombustibles, alentar el uso excesivo de fertilizantes químicos.

En la mayoría de los casos, el resultado final de los subsidios es negativo pues tienden a tener implicaciones económicas, sociales y ambientales

adversas. Los subsidios pueden significar una pesada carga en las finanzas del gobierno, debilitar el balance del comercio exterior y atrofiar el potencial de las economías. También pueden llevar a un consumo mayor de energía y reducir los incentivos para conservar y utilizar la energía de manera más eficiente. Cuando el precio pagadero a los productores se reduce para ayudar a los consumidores, el subsidio puede minar el rendimiento de la inversión para el proveedor de energía y su capacidad e incentivo para invertir en exploración, nueva infraestructura y/o tecnología más moderna. Como resultado, se puede alentar la dependencia en tecnologías obsoletas o menos limpias.

Los subsidios a fabricantes y otros usuarios de energía subsidiada, que sirven de colchón ante presiones competitivas del mercado, tienden a reducir los incentivos para ser económicamente eficientes, lo que resulta en operaciones de planta menos eficaces. Resultados no esperados de los subsidios a combustibles son el contrabando a países vecinos en donde el precio de venta es mayor o el aprovisionamiento ilegal – una práctica que preocupa inmensamente a las autoridades de Trinidad y Tobago, en especial con respecto al diésel.

La eliminación de subsidios que son a la vez costosos para la economía y perjudiciales para el medio ambiente sería una reforma positiva para todos. Sin embargo, los gobiernos a menudo se enfrentan a incomodas decisiones entre los beneficios económicos y medioambientales de reducir los subsidios y los costos sociales que acarrea tener precios más elevados en los combustibles. Estas reformas pueden tener también serias consecuencias políticas. El valor monetario de los subsidios tiende a ser muy elevado; de hecho, se estima que mundialmente equivalen a $1,9 billones de dólares o 2,5% del PIB global y se pagan por lo general de los ingresos fiscales. Estos fondos podrían invertirse mejor en salud, educación e infraestructura que beneficiaría a toda la población, mejoraría el nivel de vida y la productividad.

Tras años de recomendaciones por parte de varias Cámaras de Comercio y otras entidades, siento gran aliento por las acciones que ha tomado el gobierno de Trinidad y Tobago, en 2012, para comenzar el proceso de reducción del subsidio energético en un esfuerzo por contener el déficit presupuestario y revitalizar la economía. En 2012, el monto del subsidio energético se concretó en el rango de los $3,4 miles de millones al año. Cuando esta cifra se compara con el monto del déficit presupuestado de $7,669 miles de millones o 4,6% del Producto Interno Bruto, resulta claro por qué en simples términos económicos el Ministro de Finanzas y Economía querría llegar a eliminar este subsidio. Gracias a las lecciones aprendidas de las experiencias de Nigeria, la India y otros países que han tomado medidas para reducir sus subsidios energéticos, el Ministro de Finanzas y Economía ha adoptado un enfoque moderado y en fases hacia la eliminación del subsidio de combustible, comenzando con la reducción del subsidio para la gasolina premium. Esta iniciativa sirve de señal para la población de la firme intención del Gobierno de afrontar este problema a mediano plazo.

Reformar los actuales subsidios energéticos requiere una fuerte voluntad política, duras decisiones y debería ser parte de un proceso más amplio de reforma económica y social. Cualquier impacto negativo de tal reforma puede ser subsanado por parte del Gobierno por medio de la introducción de medidas compensatorias que ayuden a los grupos sociales o sectores vulnerables afectados.

AmCham T&T respalda un enfoque bien planificado en fases hacia la reforma del subsidio energético y confía en que mecanismos apropiados se pongan en marcha para reducir las emisiones de gases nocivos y de efecto invernadero, para generar una mayor eficiencia energética y para alentar la innovación y las nuevas tecnologías e industrias hacia una Trinidad y Tobago más productiva y competitiva.

punTodevista


"our search for growth, jobs and affordable supplIes of energy, our fIght agaInst transnatIonal crIme, and the protectIon of our clImate and our envIronment — all of these Issues, all of these Issues have no respect for borders and they affect all of our borders. they dIrectly affect the people of my country and each and every one of yours."

(joe bIdden)

US Vice PreSident JOe Biden ViSitS trinidad and tOBagO

The Honourable Kamla Persad-Bissessar, SC, Prime Minister of Trinidad and Tobago, meets with uS vice president Joe biden, seen here shaking hands with amCham T&T president hugh howard during his recent visit to Trinidad and Tobago.

at right: brandon baron, economic officer for the uS embassy and member of amCham T&T’s Trade and investment Committee, presents uS vice president Joe biden with the Trade and Investment Framework Agreement (TIFA) for signing. The Tifa was signed by biden and haitian president michel martelly after more than six years of negotiations. The Tifa provides a forum for bilateral talks to enhance trade and investment and discuss specific issues between the united States and CariCom.



There is neither a magic formula nor a silver bullet in the process of managing these types of fields. furthermore, when the mature asset is located offshore in corrosive oceanic conditions then close scrutiny to cost and expenses compared to income must be addressed regularly.

A mature oil field in this article is defined as an oil or gas property which has been producing for many years contains wells of low productivity due to depletion, produces significant amounts of water, has old or obsolete equipment and infrastructure and does not generate sufficient cash for re-development. This is familiar here in Trinidad and Tobago as well as in many offshore oil producing basins worldwide such as in the Gulf of Mexico and the North Sea.

fIeld managementAmong the factors that impinge upon

field management is the number of wells on production each day and their contribution to production depending upon the efficiency of the lifting devices and methods to maintain continuous production. The second factor is the treatment of produced water and its disposal while meeting environmental standards. There are many win win in this area since the removal of water near to the source of production reduces costs and avoids complicated chemical and thermal separation processes further

downstream. In this regard, Repsol has diligently changed the operating philosophy for offshore management in these two main areas and has enjoyed success in this manner.

For offshore operations, logistics is extremely important. Helicopter transportation of personnel and marine transportation of materials are the lifelines for supply of food, expertise and services necessary for the continuous running of these platforms.

Other factors that impinge on mature operations include oil or gas well production rates, oil and gas prices, fiscal regime, costs for development drilling, seismic re-processing and acquisition, infrastructure costs and regulatory compliance measures.

Some or all of the above factors influence development strategies for companies involved in the management of mature assets upstream. For the most part, oil prices are the normal trigger for renewal and re-development of old oilfields. Developmental projects include infill development drilling, enhanced oil recovery projects such as thermal operations, water flooding, carbon dioxide flooding, well re-activations and side-tracking among others.

the paradIgmHistorically, whenever the oil price is high

there is usually a revival of drilling programmes,

workovers and new projects in the upstream operations.

The present crude oil price is quite good empirically but what is of importance is what oil companies derive after costs and expenses are removed. The paradigm therefore becomes even more circulatory since costs and expenses are increased by inflationary pressures and the net to the oil companies can remain the same or even decrease.

How do we create a genuine renewal of re-development in mature oil fields?

the challengesThe operators of mature oil or gas

fields mandate the renewal of old systems, improvement in equipment and technology and a fresh look at old perspectives. Over the past years as an operator in Trinidad & Tobago Repsol has taken a heads on approach to some of these challenges and to extending the life of these mature fields. Significant resources has been invested to upgrade each installation and one of these projects which have major impact on Repsol’s environmental and integrity outlook is the Offshore Crude Oil Treatment (OCOT) plant which includes 2 oil-water separation trains for Teak Samaan and Poui production. These facilities have the capacity to dehydrate 18,000 barrels of oil per day to pipeline quality crude oil while treating up to 11,000 barrels of produced water per day.

Repsol’s commitment to extending the life of these mature oilfields will continue to be exemplified with platform and process upgrades, best talent and significant investments whilst ensuring safe and efficient operations for all.

Managing MatUre Oil and gaS FieldS

many of the oIlfIelds In the world whIch were gIants In the past have now passed Into beIng brownfIeld assets and are what Is commonly descrIbed In the upstream vocabulary as ‘mature assets’. however, these assets stIll remaIn productIve and profItable when the IngredIents for sustaInIng oIl and gas productIon are put together.

by allan russellBusiness Unit Advisor, Repsol


z


exploration/appraisal and developments are evolving at the same time through the development and deployment of technology driven by the need to access resources in technically complex areas.

Despite being a mature province the Columbus basin, where bpTT operates still holds good potential for exploration/appraisal and development. bpTT is excited about the future of the basin and we believe that there is more gas and oil to be found in areas in which we operate and by extension the whole basin.

hIstory – solid foundation

establishing a strong resource/reserve base has been an essential foundation of the business. The Columbus basin has a prolific

source rock with a tectonic environment that has allowed many trapping structures with reservoirs of high quality.

bpTT and companies like ours have

benefitted from a stable legislative

environment that has transcended various

administrations. This stability allowed

energy sector companies to plan for the long-

term. When the sector was developing, gas

prices were rising steadily and, exploration

costs were relatively steady. These were

perfect conditions for growth.

in that stable environment, bpTT’s gas business grew rapidly. That growth included expansion in infrastructure. between 1997 and 2010 bpTT installed 10 platforms. That brought the total number of platforms to 13 and created a high-

volume business that today accounts for 60 percent of Trinidad and Tobago’s natural gas production and 17 percent of bp’s global production.

along with the development of infrastructure, there was also the development of local capacity within the industry. We led this initiative by helping to establish the Geosciences programme at the university of the West indies and through our graduate trainee programme Challenge. both initiatives laid a solid foundation for building competencies and skills and as a result providing home-grown talent that is sought after throughout BP. This home-grown talent is essential to the long-term viability of the local energy sector and is certainly a factor in the outlook. Simply put, you cannot make the best of evolving technology and techniques unless you have a workforce with the right competencies and skills, strong understanding of the industry and the drive to innovate.

technOlOgy, the key tO cOMPetitiVeneSS

the natural gas Industry Is passIng through a dynamIc phase. It Is a phase In whIch both supply and tradIng are evolvIng to the poInt where the future Is InterestIng and defInItely not a case of busIness as usual.

specIal feature: energy & competItIveness

by keIth ballyvice president reservoir Development, bpTT


z


present – building on the foundation in a new age

The current environment has changed since the 1990s. operators are now faced with rising costs of exploration and appraisal and the challenge of operating with ageing infrastructure in a mature province. There are also challenges associated with drilling in more complex areas.

Despite the challenges, we believe that the Columbus basin remains extremely attractive. our base fields continue to do well and there are increasingly more opportunities for appraisal and exploration/development. our reservoir management and base management teams focus on how the business can maximize recoveries from existing fields, for long term value.

We are excited about the possibility of new or prospective areas within our existing field infrastructure. an example of our most recent appraisal success is the Savonette field with the Savonette 4 appraisal well in 2012. This appraisal well discovered an estimated one trillion cubic feet of gas in place which doubled the original estimate of gas in place to two trillion cubic feet. This new well was brought on production within three months of discovery and has resulted

in two follow-on development wells in 2013 in the Savonette field.

technology

Technology is the key to unlocking the potential of the Columbus basin, from maximising recovery from existing fields to accessing resources. Technology underpins everything we do, from operating safely, to discovering and recovering more resources, creating energy efficient products and producing lower carbon fuels and power. bpTT is leveraging technology to address challenges that include maintaining gas deliverability, aging infrastructure, costs of future developments and increasing well complexity.

one of the major areas in which we are applying new technology is in the acquisition of seismic data. in may of this year bpTT completed the ocean bottom Cable Seismic (OBCS) survey.

We are improving our understanding of the subsurface with the obCS survey. over 1,000 square km of data over the area known as the South Trend covering most of the blocks identified as South east Galeota and east mayaro as well as an area to the

north which is identified as angelin were acquired over a 10 month period starting in october 2011 and finishing in may 2013.

The obCS represented the first time that bp used independent Simultaneous Source technology outside of a test environment. We have already seen an improvement in the quality of the early data and the technology has cut acquisition time by 50 percent and helped increase production efficiencies in the survey. The initial fast track data has shown significant uplift and we have already begun to fully process the data acquired.

bpTT believes that our current producing acreage, the Columbus basin will remain important to the long-term outlook for natural gas production in T&T. Despite being a mature province there remains gas to be found and exploited, as our success at Savonette and the early data from the obCS suggest. The constant drive to apply new technologies to continue to maximise recovery from our known resources will be the key to our future success.. With the right prospectivity, right technology and the right investment climate we are optimistic that we can continue to lengthen the life of the gas industry.

one of the major areas In whIch we are applyIng new technology Is In the acQuIsItIon of seIsmIc data. In may of thIs year bptt completed the ocean bottom cable seIsmIc (obcs) survey.

seismic survey ship with helicopter




renewable energy is energy that does not depend on coal, oil and natural gas. it is energy that is generated from the sun, wind, water or the ocean, biomass or hydrogen (bioenergy) and geothermal energy.

hIstory of renewablesDuring the energy crisis of the mid-1970s, the

perceived risk of running out of conventional fossil fuels led to “crash” programmes in developing renewable sources and energy conservation measures. In the 1980s, the risks associated with pollution spurred work to avoid or remedy environmental damage from fossil fuel extraction, processing, and transport and led to measures to burn fossil fuels more cleanly. Then, the risks associated with CO2 emissions and global warming again spurred interest in renewable energy; making it necessary to

end the burning of fossil fuels and somehow sequester the produced CO2 efficiently enough to actually address global warming. As such, if global warming issues are demanding for us to quit our fossil fuel use, are there in fact practical renewable alternatives? More generally, is there a sustainable energy system that can supply growing populations with energy without destroying the environment within which it is used, providing energy for the present without compromising the ability of future generations to meet their needs?

gortt revewables InItIatIvesThe question then is whether governments

should subsidise building, manufacturing, and implementing renewable energy technologies. The Government of Trinidad and Tobago via the Ministry of Energy and Energy Affairs supports the sustainable energy drive, which is evidenced by

the recently commissioned Regional Renewable Energy Centre following a MOU with the United States of America focused on stimulating green initiatives for Trinidad & Tobago and the wider Caricom region. This initiative commenced with a pilot project in the nation’s schools, centred on the use of solar photovoltaic technology. In addition to this, a Wind Resource Assessment Programme (WRAP) was launched, with efforts focussed on establishing wind farms on the east coast of Trinidad; this initiative can be further expanded to offshore sites.

Following global best practices, other applications of similar technologies that may be suitable for Trinidad & Tobago would be biomass and hydropower. Biomass and biofuels can be obtained from wood, crops, harvest residues, urban refuse and industrial wastes, all of which would have a regular supply in Trinidad & Tobago from our agricultural trusts and industrial estates, namely the Point Lisas Industrial estate.

Hydropower can utilise the dams and main rivers to produce electricity by using water to rotate turbines. Dams could be the favoured option, as habitats for aquatic animals could be created and enhanced to blend with Trinidad & Tobago’s ecosystem.

the term “renewable” Is generally applIed to those energy resources and technologIes whose common characterIstIc Is that they are non-depletable or naturally replenIsh able. Interest In renewable energy has depended on the perceIved rIsks of usIng fossIl fuels. seImens (2013) states “ever sInce the begInnIng of tIme, the wInd, sun and the water have provIded InfInIte potentIal for sustaInable energy”.

by karlene alIAdministrative/HSE Manger - Jasmin Oil & Gas Ltd

and shIvanand panchamSales Manager – Halliburton Trinidad, Guyanas & Central America

continued on page 18

liFe aFter FOSSil FUel



renewables InvestmentAmidst active operations in Trinidad in both

the upstream and downstream energy industries along with the exploration thrust in the Guyana basin, long-term investment in renewable energy in this geographic area can prove to be highly prolific.

Investment in renewable energy will concurrently attract new markets for provision of services for companies. This would mirror global trend investment in renewable energy for developing countries, where for a third successive year, global investment in renewable energy has exceeded US$200 billion, with the major players being the United States, the Middle East, Japan, Germany and China.

The current geographic location of Trinidad and the presence of multinational companies in the Caribbean and Latin America give a strategic fit for renewable energy. Added to this, the presence of some necessary raw materials for renewable energy, namely biomass from domestic agricultural use and industrial estate waste, blended with the investment climate and global trend in renewable energy has the potential for significant and sustainable investment opportunities in Trinidad & Tobago. However, such a thrust must commence with the key ingredient of green energy legislation to allow renewable energy companies to form partnerships, a business strategy that has long worked to attract investment capital to the oil and gas industry.

By developing and implementing renewable energy technologies and manufacturing capabilities, a sustainable energy infrastructure can be built to carry us well into the next millennium. Renewable Energy World (2013) cited that renewable energy has environmental benefits, provides sustainable energy for several generations, creates sustainable jobs, keeps countries' revenues domestic and provides energy independence and security, thereby reducing dependency on foreign energy supply.

benefIts of renewablesFrom a Western environmental viewpoint,

renewable energy is thought to be beneficial as a clean energy source with minimal impacts on the environment. Renewable energy not only has environmental benefits, but social, economic and cultural benefits as well. All forms of application of renewable energy technologies require sufficient population sensitisation and stakeholder involvement.

The benefits of renewable energy stem from the reduction of use and reliance on fossil fuel resources. Two major environmental attributes that arise out of using renewable energy are the reduction of pollution and greenhouse gas emissions. Another attribute of renewable energy is that there is less reliance on foreign resources for energy. These benefits have helped the development of financial incentives, such as green tags and tax credits, for people who use

or develop renewable energy. These financial incentives can play a major role in increasing the popularity of renewable energy. These three attributes of using renewable energy all branch into environmental and societal benefits that are positive for everyone. The attribute of reducing fossil fuel usage by using renewable energy is the reduction in pollution which allows for cleaner water, cleaner air, cleaner soil, and more usable land.

takIng care of mother earthBy promoting and developing renewable

energy, all people can help fulfil their roles as caretakers of Mother Earth and be leaders bringing the world together to work at restoring the environment. Whilst different people have different perspectives and approaches of renewable energy, common goals are shared. All perspectives show that renewable energy can provide a solution to environmental problems such as pollution and climate change, a way to become energy independent, a way to strengthen the economy. These perspectives show that renewable energy is a positive alternative that can benefit individual groups of people and the world as a whole. All in all, renewable energy is an important factor in making sure that life will continue for many generations to come.

• reductionofuseandrelIance on fossIl fuel resources

• reductionofpollutionand greenhouse gas emIssIons

• lessrelianceonforeignresources

for energy these benefIts have helped the development of fInancIal IncentIves, such as green tags and tax credIts, for people who use or develop renewable energy.

lIfe after fossIl fuels (contInued from page 16)



it is in this regard that commercialisation of renewable energy technologies can play a significant role in GorTT’s ability to achieve its stated policy goals.

This paper presents the efforts being made by GORTT and its agencies to build a renewable energy industry and foster the use of renewable energy in Trinidad and Tobago.

The commercialisation of renewable energy involves the deployment of three generations of renewable energy technologies dating back more than 100 years. First-generation technologies, which are already mature and economically competitive, include biomass, hydroelectricity, geothermal power and heat. Second-generation technologies are market-ready and are being deployed at the present time; they include solar heating, photovoltaics, wind power, solar thermal power stations, and modern forms of bioenergy. Third-generation technologies require continued R&D efforts in order to make large contributions on a global scale and include advanced biomass gasification, and ocean energy.

There are non-technical barriers to the widespread use of renewable energy. Some of these barriers are addressed by public policy and governmental leadership which are also used to drive the wider acceptance of renewable energy technologies. In fact some 85 countries now have targets for their own renewable energy futures, and have enacted wide-ranging public policies to promote renewable energy.

However, there are other barriers which place renewable energy technologies at a marketing, institutional, or policy disadvantage relative to other forms of energy. Key among these are:

Lack of policies and regulations supporting deployment of renewable energy technologies and the presence of policies and regulations hindering renewable energy development and supporting conventional energy development.

Lack of information dissemination and consumer awareness.

Higher capital cost of renewable energy technologies compared with conventional energy technologies.

Difficulty overcoming established energy systems

Inadequate financing options for renewable energy projects.

Imperfect capital markets, which includes failure to internalise all costs of conventional energy (e.g., effects of air pollution, risk of supply disruption) and failure to internalise all benefits of renewable energy (e.g., cleaner air, energy security).

Inadequate workforce skills and training.

Lack of adequate codes, standards, utility interconnection and net-metering guidelines.

Poor public perception of renewable energy system aesthetics.

Lack of stakeholder/community participation and co-operation in energy choices and renewable energy projects.

In an effort to drive acceptance of renewable energy, GORTT in 2008, constituted a Renewable Energy Committee (REC) to frame a Renewable Energy Policy Green Paper and formulate initiatives and projects for Renewable Energy development and use in Trinidad and Tobago. Additionally, GORTT is in the process of developing a National Energy Policy green paper that recognises renewable energy combined with energy efficiency as key strategies for the promotion of sustainable development in Trinidad and Tobago.

Arising out of the work of the REC, The Ministry of Energy and Energy Affairs (MEEA) in conjunction with the National Energy Corporation (NEC) has undertaken to implement the following three renewable energy projects aimed and introducing and promoting renewable energy technology to citizens:-

Solar induction lighting at community centres- The project involves the incorporation of solar induction lighting to illuminate the centres’ exterior including designated areas for vehicle parking. The solar lighting fixtures, when installed will satisfy the primary lighting needs with the regular lighting as back-up and support the use of these centres as disaster relief venues.

RE technologies in secondary schools - The ultimate goal of the project is to increase the knowledge and competencies of citizens in the sustainable use of alternative sources of energy, through comprehensive education programmes for secondary school students. Students will gain practical knowledge, skills

the transItIon to more sustaInable sources of energy as part of Its medIum term polIcy framework 2011 – 2014, the government of the republIc of trInIdad and tobago (gortt) IdentIfIed the development of a green Industry and alternatIve energy sources as components of Its goal of “buIldIng a competItIve, InnovatIon – drIven economy.”

renewaBleS

by marcIa maynard Team leader – national energy Corporation

of Trinidad and Tobago



and abilities through lessons that integrate Renewable Energy (RE) and Energy Efficiency (EE) technologies with Information and Communication Technology (ICT) Education as well as activities in Science and Technology Education utilising related technologies installed in schools.

Wind Resource Assessment Programme - The development of a wind farm in Trinidad and Tobago is one step to developing a low carbon society. The main objective of this project is the promotion of the productive use of renewable energy to reduce Green House Gas emissions and to diversify the local energy portfolio mix for power generation.

The ultimate goal of these projects is to build awareness of renewable energy technologies and their use among the population in order to encourage public participation and education through both visual and physical interaction with the technologies, thereby removing/reducing one of the key barriers for wider acceptance and use of the RE technologies.

In addition the NEC, as part of its mandate to further develop the gas-based and downstream energy industry, and in light of GORTT thrust towards renewable energy, has included renewable energy as part of its six focus industries identified for development.

As such NEC has identified sites at its Union Industrial Estate (UIE) in La Brea, South Trinidad for the development of projects involved in renewable energy technology manufacturing. Available plots range in sizes from 2.9 ha to 4 ha with key utilities available and easy access to the Brighton port.

Both established and newly emerging companies will be given the opportunity, based on the company’s tendering process, to participate in the initiative. The objectives of the initiative include:

Development of projects utilising renewable energy e.g. solar and wind

Attraction of projects which encourage sustainable development

Development of a renewable energy technology manufacturing cluster.

The benefits of establishing a renewable energy industry in Trinidad and Tobago include the following:

Employment generation

Economic Diversification

Expansion of research and development capabilities

Increase economic activity, for example, solar cell fabrication could lead to the development of microelectronic manufacturing.

It should also be noted that at the 41st Special Meeting of the Council for Trade and Economic Development (COTED), the CARICOM Energy Policy was finally ratified. This represents additional opportunity for local entrepreneurs, as more renewable energy technologies for power generation are expected to be deployed throughout the Caribbean region.

the ultImate goal of these projects Is to buIld awareness of renewable energy technologIes and theIr use among the populatIon In order to encourage publIc partIcIpatIon and educatIon through both vIsual and physIcal InteractIon wIth the technologIes, thereby removIng/reducIng one of the key barrIers for wIder acceptance and use of the re technologIes.



Despite energy richness, our infant mortality rate is among the highest in the world, this is so according to Dr. anton Cumberbatch who appeared before a Joint Select Committee of parliament. We were recently singled out amongst the fattest countries in the world. our crime statistics are horrendous and i am sure we would fail on any happiness assessment. but there is one other indicator which causes concern - carbon emissions. In the per capita global measurement we are ranked among the top 5 offenders.

A Camille Bethel story in the Trinidad Express of November 12, 2012, quoted the Minister of Energy Kevin Ramnarine as saying: "The sad reality is the World Bank has ranked Trinidad as one of the worst energy-efficient countries in the world, so we have to get our act together. It (energy) affects our everyday life and I think the culture has to change in Trinidad with regards to how we treat with energy. There has to be a culture of conservation in Trinidad and Tobago”. The Minister is spot on, however this is no time for platitudes about conservation, it is time for drastic action.

In 2008, multiple Pulizer prize winner, Thomas Friedman published Hot, Flat, and Crowded, which brought a fresh outlook to the crises

of destabilising climate change and rising competition for energy”. Friedman proposed an ambitious American strategy called "Geo-Greenism” to save the planet from overheating while making America healthier, richer, more innovative, more productive, and more secure.

This book should be required reading for our energy czars and decision makers.

While reading Hot, Flat, and Crowded, I questioned what could be a “stand out” action taken to communicate this message of conservation to our population while improving productivity on a national scale. My conclusion, make owning a car and driving unattractive. That translates into charging the economic price for gasoline, which in Trinidad & Tobago is sold at US¢36 per litre, compared with US¢76 per litre in the United States, US$1.92 in the United Kingdom and US$2.12 in Norway.

Maintaining such a low price for gasoline is simply deferring our death sentence. However, implementing a drastic measure will require us to think through the impact on all the drivers of inflation since it will have a major impact on mass transportation, vehicular congestion, productivity, wellness and even happiness. Tackling this one big problem will ripple through

the country and be the economic and social game changer we need.

Given the enormity of such an action, it would be necessary to take a bi-partisan, populace approach to the final decision and its implementation. It could provide an opportunity for the population to take part in long-term decision-making and lock the decision making into place so that changing political parties will have no impact.

We have over the years seen what happens when there is no citizen participation in decision making. It has generally resulted in wastage, corruption, multiple lost opportunities and the most senseless attempts at the blame game. Paying a real price for gasoline is significant, because we are simply burning up our future every time we fill up the tank. The fact that oil is a finite resource and every barrel extracted is one barrel less for future consumption should frighten us into real efforts at monetisation. The notion of diversification has been on the national agenda for many years and we pat ourselves on the backs saying how well we are doing when compared with our Caribbean neighbours but having a ready supply of cheap energy is helpful to any manufacturing sector.

We need to look at our future through a different lens, the lens of energy conservation and energy efficiency. Time and time again I have learned that people only take action when there is a consequence. The time has come to send a major signal to the population. Until such a major price signal is sent, citizens will continue to consume gasoline“willy nilly” and as a country we will continue to be hostage to this depleting, finite resource “Oil”.

cheaP gaS Paid FOr with haPPineSS

our country has been In the oIl busIness for more than 100 years. we are an old oIl producer. In the more recent past, we have played a major role In the global lng and fertIlIzer markets. despIte these ImpressIve statements, there Is a naggIng feelIng that there has been lIttle real Impact on natIonal development, or QualIty of lIfe or the level of happIness experIenced by our cItIzens. If asked how has the energy boom Impacted us, my subjectIve response Is that we are“ok-Ish”. however, measured agaInst really hard crIterIa, our performance would be descrIbed as abysmal.

by dennIse demmIngLead Consultant , Demming Communications

why we should make ownIng a car and drIvIng unattractIve



by nIgel darlowCEO, Atlantic

adapted from the speech presented to the 3rd Global Gas and LNG Summit

at the same time in South america, there is strong growth in demand for lnG, along with premium prices. as a result, there is a continuing diversion of lnG cargoes away from the uS and into South america.

For example, in the case of Trinidad and Tobago’s LNG producer Atlantic, in 2008 about 50% of our LNG went into the US. Now it is less than 20% and declining. By contrast the percentage of Atlantic’s cargoes into South America has grown to over 40%, with Argentina being the largest importer.

This diversification away from the US is not surprising given the price differential between the North and South American markets. According to the US Federal Energy Regulatory

Commission’s (FERC) estimate of world LNG prices for May this year, prices for natural gas in North America prices are at around $4 dollars per mmbtu compared to $15 to $16 in South America. This is a very significant differential.

There are four distinct regional markets: North America, South America, Europe and Asia Pacific, all with different pricing structures and outcomes. Unlike oil, there is no global LNG price, partly because LNG is predominantly sold under long term contracts. Compared to oil, only a relatively small amount of LNG is spot traded. Recently however, the volume of LNG sold under short term contracts or spot traded has begun to increase.

wIdenIng the canalAnother important development for

LNG in the Americas is the widening of the

Panama Canal, due for completion in 2015.

This is significant because for the first time

conventional sized LNG ships will be able to

transit the Canal – significantly reducing voyage

times. This will facilitate greater LNG trade from

the Atlantic Basin to the higher priced LNG

markets in the Asia-Pacific region.

global lng: supply vs demandOn the supply side there is a rapid emergence

of new LNG plants worldwide, especially in

Australia, which is set to become the largest

exporter of LNG by 2017. In addition, the

phenomenal rise in US shale gas production

is supporting the development of US LNG

export terminals. The first such terminal is due

to come on stream in 2016. In May, the US

Department of Energy conditionally approved

plans for another LNG export terminal, this time

in Freeport, Texas. Other terminals are in the

pipeline for approval.

the ShiFting dynaMicS OF SUPPly & deMand FOr lng in the aMericaS

the global lIQuefIed natural gas (lng) busIness appears on course for an era of further rapId expansIon. In the amerIcas regIon, perhaps the most remarkable change has come wIth what Is often descrIbed as the “shale gas revolutIon” In the unIted states. the us have sIgnIfIcantly Increased theIr natural gas productIon, slashed theIr Imports of lng and are poIsed to become an exporter of lng In 2016. just a few years ago, thIs was InconceIvable.

In 2008 about 50% of our LNG went into the US. Now it is less than 20%

and declining.

According to the US Federal Energy Regulatory Commission’s (FERC) estimate of world LNG prices for May this year, prices for natural gas in North America prices are at around $4 dollars per mmbtu compared to $15 to $16 in South America. This is a very significant differential.

In 2012, Asia Pacific accounted for over 70% of world LNG consumption. In 2011 LNG production worldwide amounted to 32 bcf per day equivalent to circa 240 million tons per annum. Regionally the greatest demand is in Japan, South Korea and Taiwan. Japan has by far the largest, importing about a third of the world’s LNG production in 2011.

On the supply side there is a rapid emergence of new LNG plants worldwide, especially in Australia, which is set to become the largest exporter of LNG by 2017.

Another important development for LNG in the Americas is the widening of the Panama Canal, due for completion in 2015

20%

50%

40%

North America

South America

Europe

Asia Pacific

By contrast the percentage of atlantic’s cargoes into south america has grown to over 40%, with argentina being the largest importer.



In addition to the plants currently under construction (especially in Australia) and the emergence of the US as an LNG exporter, significant potential for LNG production also exists in other areas – perhaps most notably from the recent large gas discoveries in East Africa, especially Mozambique. A report published in May by ICF International commissioned by the American Petroleum Institute lists a total of 63 new LNG projects – 13 currently in the construction phase and 50 in the planning phase – with start-up dates ranging from 2013 out to 2030. These 13 LNG liquefaction projects now under construction will add about 85 million tons per annum of new LNG production by the end of 2016. Those in the planning phase could add close to 300 million tons of additional LNG by 2030.

However, it is possible that not all the project in the planning phase will come to fruition for a variety of reasons, but especially because of development costs. Development costs for new LNG liquefaction projects are high and represent major investments. Increasingly, project

economics have to be robust in order to justify the risks of large scale investment. In the last few weeks, two Australian LNG projects, Browse and Pluto Trains 2 & 3 have been put on hold. High development costs are believed to be a factor in the decision.

It appears likely that some of the planned LNG development projects will fail to materialise due to cost. In Atlantic’s analysis many of the new LNG liquefaction plants are costing over 5 times more per unit ton than it cost to build Atlantic. This is of course it is good news for Atlantic as it should mean we remain a very cost effective producer of LNG and that Atlantic’s LNG remains competitive and attractive globally.

world lng ImportsWorldwide, natural gas is increasingly

becoming the fuel of choice, with the advantage of being much cleaner than coal and oil. So globally, gas demand is projected to grow strongly. Much of the growth in demand will be driven by Asia.

Growth in LNG demand will be similarly strong. Indeed, projections are for LNG demand to outstrip sources of LNG supply for the foreseeable future, with especially strong growth in the Asia Pacific Region. In 2012, Asia Pacific accounted for over 70% of world LNG consumption. In 2011 LNG production worldwide amounted to 32 bcf per day equivalent to circa 240 million tons per annum. Regionally the greatest demand is in Japan, South Korea and Taiwan. Japan has by far the largest, importing about a third of the world’s LNG production in 2011. The demand in Japan has of course been heightened by the country’s search for alternatives to nuclear energy in the wake of the Fukushima incident.

So from every angle, trends indicate that over the next few years LNG production capacity has to be increased to meet the demand side. But even with all the new LNG plants in progress and those planned there is still going to be challenge to meet the demand growth. Atlantic and Trinidad and Tobago will continue to reap the rewards of large scale LNG export for many years to come.



many developing countries possess a primary export industry which disproportionately contributes to their GDp and national wealth. examples of these include the oil industry in Venezuela, precious minerals in Angola, columbite-tantalite (coltan) in the Congo, natural gas in Trinidad and Tobago, among others. Furthermore, these industries are many times based on non-renewable natural resources which will only sustain the economies linked to them for a finite period as technological substitutes advance and reserves dwindle.

achieVing SUStainaBle grOwth

by atIba phIllIps Founder and Principal Consultant at ICT Ltd.

A prototypical feature of these economies is their unstable nature due to dependence on fluctuating world commodity prices, changes in preferential market access arrangements, depleting reserves and a host of other possible market structure shocks. Such changes invariably have detrimental social and economic impacts on the related nations and societies.

The IconIc case of TrInIdad and TobagoThe case of TrInIdad and Tobago Is InsTrucTIve for several reasons:

1

2

3

4

Trinidad and Tobago exhibiTs The characTerisTic profile of a posT colonial developing counTry which relies heavily on a single exporT facing indusTry To make The major conTribuTion To naTional wealTh and gdp.

Its domInant productIve sector Is natural resource based and has been subject to the fluctuatIons and vagarIes of the world market over the last 40 years throwIng the host economy Into prototypIcal booms and slumps.

Trinidad and Tobago’s energy secTor is foreign invesTor-led. Much of The value creaTed by The secTor Thus reTurns ouT-of-counTry.

The local skill base has mainly been developed in The operaTional and mainTenance (low-value added) aspecTs of The secTor, while The sTraTegic managerial, markeTing and Technology aspecTs have hisTorically been provided exTernally.



Defining a new outcome

The vision is to build a cadre of skilled managers, entrepreneurs and technologists who can build capacity across all domestic sectors. This capacity can eventually be taken to the international market such that revenue streams begin to occur which are diverse and independent of the initial “cash crop” activity within the economy.

equity participation

To carry out this transition, lesser-developed countries would be well advised to employ the world-class resources in the international marketplace to their advantage. This can be achieved through specific partnerships with international organisations adept in the experience and skill-sets being sought. At all levels of this value chain the developing country must seek to forge deep equity relationships in this process of alliance (rather than simpler distribution type arrangements) for there to be the optimal transfer of ideas and technology necessary to bolster indigenous human resource and institutional capability.

Skills Development

Pull strategies, in which the prescribed training and development activities are directly related to current and anticipated market opportunities as well as country development priorities must be pursued. This will serve to minimise the crippling phenomena of ‘brain drain’ as scholarship graduates find their skill-sets a mis-match to the opportunities and priorities of the local economy. Thus they seek employment in other territories better able to accept and reward their new found competencies.

The Quality of the business environment

Additionally factors such as the state of cluster development, the availability of business financing, the extent of bureaucratic red tape (in management culture as well as in Government), the tone of labour relations, as well as the independence of the judiciary, all affect the

ability of the productive sector to efficiency carry on the business of wealth generation.

Technological Capability and innovation

Developing nations must move away from the present mode of engendering “static technological capability” which is the minimum requirement for the maintenance of a given productive system, with existing given equipment and technology. “Dynamic technological capability” engenders a cadre of local companies and individuals with the complex set of skills and tools necessary to run the industry successfully over time and to innovate when necessary to overcome specific problems as they arise .

Another shift in emphasis which is necessary to achieve the goal of sustainability is the move away from the focus on the upgrading of the individual firm or entity within the sector, toward the looking upon upgrading as process of innovation across the sector as a whole. Individual domestic firms cannot compete in the global economy without the support of a dynamic and upgraded sectoral innovation support structure.

Additionally, there must be efforts to upgrade across sectors, actively using the innovations and systemic improvements in the flagship sector to provide linkages and enhancements to other sectors thus achieving the goal of economic diversification.

public policy interventions

Host governments cannot rely on the schemes of attracting FDI alone to bring about the “productivity spillovers” (i.e. worker training, knowledge transfer and market access) and other positive externalities as extolled in theory. Developing countries must see it within their ability and mandate, to choose international companies as partners in a mutually beneficial and balanced process of development and profit-making. This ability becomes credible when developing countries recognise the value their economies bring to the Multi-National’s global business.

Also as argued by Barclay (2003), Governments must enact credible selective intervention policies; i.e. policies which seek to create an environment which identifies opportunities and mechanisms for implementation which promote indigenous technological and strategic business acumen to be developed in the host country. However, the response by Multi-National Enterprises (MNE’s) to intervention policies is likely to depend on whether or not they are perceived as credible, i.e. “they are seen as binding commitments made by host governments on which firms can rely as strategic planning assumptions. The MNE will not enter into a process of mutual strategic adaptation unless it is assured that the government can and will implement consistent policies over time”.

Trinidad and Tobago has an opportunity to choose partners who will move away from the traditional model and require that more of the energy business be done locally; particularly head office functions, such as market development, commercial strategy, customer relations, research and development, political risk analysis, negotiation, mergers and acquisitions, trading and knowledge management. Trinidad and Tobago would therefore have access to world-class business methodologies and personnel development, technologies and processes. These businesses, in turn, will develop and spawn local suppliers and contractors at a similar level, encouraging a wider range of local businesses to develop their services to international specifications.

Conclusion

Trinidad and Tobago’s changing objective is now not only to increase GDP but also to reduce dependency on oil and gas. The strategy suggested is one which is designed to create a diversified economy with increased purchasing power parity, greater equity in wealth distribution, a world-class workforce and a dynamic inshore economy satisfying local demand and exporting its surpluses.

addItIonally, there must be efforts to upgrade across sectors, actIvely usIng the InnovatIons and systemIc Improvements In the flagshIp sector to provIde lInkages and enhancements to other sectors thus achIevIng the goal of economIc dIversIfIcatIon.



The Resource Governance Index (RGI) measures the quality of governance in the oil, gas and mining sectors of the world’s largest natural resource producing countries. The index assesses the quality of four key governance components: institutional and legal Setting; reporting practices; Safeguards and Quality Controls; and enabling environment.

In 2013 Trinidad and Tobago improved on its 2010 ranking, moving from being a country assessed as having partial revenue transparency to the highest ranking of satisfactory revenue transparency.

Trinidad and Tobago’s high ranking can be attributed to its strong performance in the categories of Reporting Practices and Safeguards

and Quality Controls. A significant contributor to the Reporting Practices score has been the implementation of the Extractive Industries Transparency Initiative (EITI).

Established in 2003, the EITI is a global coalition between government, extractive companies and civil society with the objective of fostering transparency and accountability by companies and governments involved in extractive industries (i.e. oil, gas and mining) by disclosing to citizens the payments made by companies to government independently reconciled with the government’s declared receipts. The EITI’s checks and balances are essential tools in reducing corruption in the extractive sectors that generate great wealth and act as a magnet for unscrupulous persons.

All countries that are ‘resource rich’ are encouraged to implement the EITI. The International Monetary Fund (IMF), in its Guide on Resource Revenue Transparency, defines a resource-rich country as one in which the total average fiscal revenues, or the total average export proceeds, from the oil, gas and/or mining sectors, has been at least 25% over the previous three years. The IMF recognises that such countries, being heavily reliant on the exports of and revenues from a small number of concentrated, volatile and non-renewable revenue streams, need to manage those revenues more carefully to avoid the economic, social and governmental distortions that have occurred in many resource-rich countries. In the case of Trinidad and Tobago (T&T), the energy sector contributes more than 40% of GDP and approximately 70% of foreign exchange earnings, therefore, membership of the EITI is a given.

Implementation of the EITI is governed by the EITI Standard and typically involves 5

In may 2013, trInIdad and tobago was ranked 10th out of 58 natural resource rIch countrIes on the 2013 “resource governance Index” publIshed by InternatIonal energy transparency ngo revenue watch InstItute (rwI). the last rankIng of countrIes was done In 2010.

by mark regIsHead, TTEITI Secretariat

tranSParency FOr extractiVe indUStrieS



stages namely Sign up, Preparation, Disclosure, Dissemination and External Validation. In March 2011 Trinidad and Tobago successfully sought membership in the EITI as a Candidate country and is working towards achieving Compliant Country status before the end of 2013.

The EITI is increasingly recognised as a global transparency standard for the extractive industries and is supported by the G8 and G20 group of countries and by institutions such as the World Bank, the IMF, the IADB, more than 70 of the world’s largest extractive industry companies such as BP, BG and BHP Billiton, and hundreds of national and international Civil Society Organisations such as Publish What You Pay, Revenue Watch Institute and Transparency International.

At May 2013, thirty-nine countries (population 900 million) are members of the EITI and are at various stages of implementation. Twenty-three (23) countries have Compliant Country Status and seventeen (17) have Candidate Country Status. In the Americas, Peru has EITI Compliant Country status and Guatemala and T&T have Candidate Country status. USA, UK, France and Papua New Guinea have announced their intention to apply for membership.

In March 2013, the T&T EITI Administrator, a joint venture between accounting firms BDO Trinity Limited (locally based) and Hart

Nurse Limited (UK based), began work on the collecting and collating of data from selected extractive companies for the first of two EITI Reports covering Government Fiscal years 2011 and 2012 (October 2010 – September 2012).

Twenty-one (21) companies, representing approximately fifty (50) legal entities are targeted for the first two EITI Reports. These include a mix of the country’s large and medium size oil and gas players.

The criteria used by the TTEITI Steering Committee for the selection of companies were as follows: Oil production greater than 400,000 barrels in 2011, or (b) Partner in a venture under an E&P or PSC with a group whose oil production exceeded 400,000 barrels in 2011, or (c) responsible for the payment of proceeds from the sale of oil and gas representing government’s profit share, royalty and any other payment to the government. In so doing it is projected that the first two EITI Reports will cover companies that represent 97% of oil production, 99.9% of gas production and 99.7 % of royalty payments.

The next stages for T&T involve dissemination of the first TTEITI Report and External Validation. Dissemination means the sharing of the EITI Report with all stakeholders. This involves the wide distribution of the report and the hosting of workshops to explain the published figures so that all stakeholders understand the process and

the findings. The Administrator is mandated to report in simple language so as to ensure that the general public can understand the findings, conclusions and recommendations.

The External Validation phase that follows, promotes dialogue and learning at the country level by providing all stakeholders with an impartial assessment of whether EITI implementation was consistent with the EITI Principles and Criteria. This assessment is undertaken by an independent Validator approved by the EITI International Secretariat. The EITI’s International Board of Directors evaluates the Validator’s Report and its findings and determines if the country is promoted from Candidate Country status to Compliant Country status. A country that does not pass validation is told what its implementation shortcomings were and usually given an additional six months to put right the deficiencies after which it undergoes another validation test.

Enhancing transparency, accountability and good governance in the oil, gas and minerals sectors of T&T, with civil society’s involvement, will strengthen our participatory democracy and redown to the benefit of the national economy.

For more information on the TTEITI visit our website at http://www.facebook.com/tteiti"www.facebook.com/tteiti

the eItI’s InternatIonal board of dIrectors evaluates the valIdator’s report and Its fIndIngs and determInes If the country Is promoted from candIdate country status to complIant country status. a country that does not pass valIdatIon Is told what Its ImplementatIon shortcomIngs were and usually gIven an addItIonal sIx months to put rIght the defIcIencIes after whIch It undergoes another valIdatIon test.



addItIon peaks: blow downs, start-up and commIssIonIng

If we continue to liken hydrocarbons to a drug, then we can refer to the 700 oil refineries and 110 LNG facilities as ‘labs’, producing at an average 80 mb/d and estimated to have a global gas consumption rate of 3.8 trillion cubic meters by 2016. We need to understand the periods to which the carbon/emission footprints of these labs peak. The peaks are generally observed during process upsets resulting in a blow down, (re)start-up and commissioning of facilities and typically after tie-in activities for the expansion of an existing facility.

The logic here is that the facility experiences an otherwise abnormal circumstance resulting in its average cold vented and/or flared waste product to increase. When an operator is issued its ‘Consent to Operate’ license, it is typically received with parameters in which it is allowed to operate with these emissions taken into consideration.

For example, an operator may be required to notify the government of excess venting/flaring, which basically means that the facility has operated outside of the normal operating parameters established in its Consent to Operate license. This may result in a financial penalty.

There is a loop hole, however, that most turn a blind eye to. Exemptions are often negotiated with regulatory bodies, which allow the operator to operate outside of the stipulated terms and conditions during ‘peak’ periods as the facility is theoretically not considered to be ‘mechanically complete’ and not operating ‘normally’ during such times. As such, the operator is not subjected to the penalties associated with excess venting / flaring. This is not to say the volume emitted is not recorded and reported.

loopholes and brand buIldIngCorporate governance driven by strong

ethical positions, which may include Green Initiatives, has become an expectation in the way a business is run. Outside of what we see as obvious reasons for same, the scrutiny now placed publicly on businesses with respect to such governance, acts as a true motivator in mitigating against potential and realised brand/reputation erosion, not to mention the positive impacts of pollution reduction. That being said, the existence of loopholes as described above and their inherent provisions, is now becoming frowned upon in some quarters.

Companies are now being heavily mandated by their shareholders to act and perform in a

manner that promotes sustainability and in an environmentally responsible manner, not only during its ‘normal’ operations but during the facilities abnormal conditions, i.e. adverse peak periods. This growing demand has brought into the industry a new burst of engineering and business innovation that directly combats against these peaks. Corporations like Fluor and other engineering, procurement, and construction management (EPCM) companies are leading in these innovative processes and are supporting operating companies institute engineering solutions that help to reduce and in some instances eliminate excess venting/flaring and thus the operator’s carbon foot print.

engIneerIng solutIonsA brief description into how this is achieved

would be the development of commissioning strategies that allows a facility to be brought up to full production in a phased manner, resulting in previously anticipated loss of product to that which can compliment sales targets and bring about return. Essentially, a process plant is made up of various sections/modules. Each section/module, if treated independently through mechanical completion tests, can retain its operating pressures till the entire plant is pressured up and all product directed through an export line versus to flare. Such feats were achieved in 2010 at The Ras Laffan Industrial City, Qatar; where RasGas was able to commission their Trains 6 & 7 in this manner, resulting in the recovery of 530,000m3 of Sales Gas, an estimated value at the time of US$20 million.

acknowledgIng that as InhabItants of thIs planet we are addIcted to hydrocarbons, lIke wIth any other addIctIon, admIttance Is the fIrst step to recovery. weanIng an IndIvIdual off of an addIctIve substance Is hard enough. try ratIonalIsIng the same for 7.038 bIllIon people hooked on the world’s most sought-after drug: hydrocarbons!

HELLOMy Name is:

and I'm a hydrocarbon addict

by mIchael j. shandQHSSE & Risk Group Manager / Value

Assurance Leader, Fluor Corporation

sustaInable operatIng and maIntenance practIces, asset IntegrIty, engIneerIng solutIons, commIssIonIng/start up phIlosophIes, carbon/emIssIon tradIng, emergIng conservatIon energy markets

redUce carBOn while SaVing $$$



What is extremely attractive about these initiatives is that the perceived savings resulting in regulatory exemptions is negligible compared to the revenue generated from what would have been observed as waste product with zero projections for bringing about a return. The return based on ‘saved’ volume is theoretically a sellable product and has the potential to increase first gas sales beyond commercial expectancies.

When a facility experiences an upset that results in the process safety parameters of the said facility to be compromised, it is expected that its process safety logic initiates a relief and blow down scenario. This particular peak period is not one that is considered to be an undesirable given the risk-to-benefit ratio. But, there is direct impact to a facilities and even countries Cap-and-Trade values.

cap-and-trade IssuesCap-and-Trade refers to emission trading

which is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. An environmentally conscious operator, that is not subject to regulatory ‘caps’, can set a global target of pollutants (typically in an annual or bi-annual reducing scale over fixed period of 5+ years) to be emitted and trade amongst its business units to offset potential excess venting/flaring. What may act as an incentive for an operator to do so in the absence of legislation may be its ISO programmes, whether it be 9001,14001 or 18001 (dependent on the driver - quality derivative of O&M studies, the obvious environmental drivers or process safety drivers born out of a failure analysis).

Typically, a central body such as a government sets the ‘national cap’, to which existing companies and new companies applying for their Consent to Operate are made to adhere to. Companies can purchase the right to emit outside of the cap at a price that influences this abnormal operating period to be limited or trade amongst themselves so as to ensure the cap is not breached. A government that enforces such practices not only demonstrates a forward thinking position on environmental affairs, but also generates a new revenue stream.

Though more popular, Asset Integrity programmes are not born solely out of revised Industry Standards around Process Safety, but also out of O&M strategy revisions and environmental initiatives that are sometimes

regulatory influenced. Operating companies such as BG, BP, SHELL, EXXON MOBIL, RASGAS, ARAMCO etc in the past decade have all undergone or initiated Asset Integrity programmes in aid of optimised commercial and environmental performance.

Outside of the energy-based sector, the aviation industry is too applying Cap-and-Trade strategies in combating emission pollutants. This action has forced the industry to revisit its air traffic hours, look into new technologies, aircraft materials and increased a revenue stream in the Traders market. The tech industry is also focussed on renewable energy with companies such as Apple Inc. developing and manufacturing tablets, notebooks and other devices using environmentally sound and non-toxic materials, which have proven to be cost effective.

natural observance actIonsThe challenge remains today as much as

it did fifty years ago. Are environmentally-driven integrity programmes capable of bringing about the return in investment that attracts a board of directors? The shareholder who has become more environmentally conscious does have some influence on the direction that their representatives on the board take. But at the end of the day it boils down to dollars and cents. Though Fluor takes no position either way, there are those that still argue global warming to be a farce.

It therefore requires a complete paradigm shift in not only thought, but in practice, to allow for a ‘natural observance’ of environmentally beneficial initiatives to be observed as a sound investment. Natural observance (observation) refers to the study and action associated with environmental initiatives that are not born out of marketing opportunities and/or seek to satisfy a check box on a social responsibility programme.

Without a doubt, that the hydrocarbon addiction we suffer cannot simply be replaced. But we can act responsibly and continue to find new ways to treat our addiction, whilst we search for an alternative that supports not only the planet but the economy that we are equally dependent on.

Weaning off the inhabitants of our planet from this addictive substance ought to be taken quite literally. The merit in having alternative and renewable energy is truly priceless. But the journey to that next phase in humanity must be carefully mapped out with investments into

environmental strategies through engineering solutions, economic incentives, regulation and research and development being key factors to be considered.

an InconvenIent truthWhen ‘An Inconvenient Truth’ was released in

January of 2006, the world paused for a minute. And said, ‘wow!’ Then reality came rushing back in. We can’t just stop. With reality came the critics of course, but also came a rejuvenated surge in education programmes and graduates. The University of the West Indies over the past decade observed an increase in enrolment of its Environmental and Health and Safety programs and these practitioners attaining post graduate specialties into LEED (Leadership in Energy and Environmental Design) and other similar programmes. This too is an indicator of the awareness levels amongst our people.

In 1999, Trinidad and Tobago ratified and accepted the Kyoto Protocol. In 2011 the government further committed “... to pursue development pathways that will follow a low carbon paradigm as far as is possible...” - Dr. Roodal Moonilal, in his statement on the Trinidad and Tobago Climate Change Policy. It is reassuring to know that the governments of the day acknowledge not only our responsibility to ourselves but to the world.

So to the people, I challenge you to educate yourselves in the various disciplines to help combat our continued growing contributions to global GHG ratings and statistics. I challenge corporations that reap the rewards of operating in Trinidad and Tobago to look beyond the absence of matured legislation, beyond the Social Responsibility checklist and to become more ‘naturally observant’. I challenge the government to enact policy that truly makes a difference in the way hydrocarbons are extracted, produced and refined and establishing Cap-and-Trade legislation.

Our carbon footprint is just that, ours. We have the power and the means to reduce that footprint and therefore that of the worlds. And, we can do that being economically savvy. The returns that make environmental initiatives economically viable do not have to be measured against long term aspirations that are not necessarily observed as fruitful. They can be measured against returns that are immediate as highlighted in the examples discussed earlier in a true commercial sense but also help to sustain our environment and ensure a future for the generations to come.



During our three-day mission, we met with ministers of Government, various managers from state-owned oil company ‘Staatsolie’, the Surinamese power company, a mining company and most importantly, the Suriname Chamber of Commerce and industry.

Suriname has had approximately 30 years of onshore oil production that is managed, quite effectively, by Staatsolie. Over the years, several Trinbagonian companies have performed well in the Suriname energy sector and Suriname has benefited from the involvement of those companies. As a result, there is significant optimism by Surinamese entrepreneurs for continued partnerships and mutually beneficial business relationships with Trinbagonian companies.

As we find ourselves between “oil booms”, the national market is well defined and large expansion of business opportunities is not as apparent. Energy companies are now turning to new regions for growth and Suriname presents such an opportunity, especially in light of its hydrocarbon resources.

Let me give you an insight into the energy sector in Suriname.

Suriname’s onshore oil production is presently at 16,200 bpd from 1502 producing wells in three oil fields. The three fields are the Tambaredjo, Calcutta and Tambarego North West. These wells are primarily in swamp areas and Suriname has developed a novel way of production in these

less than ideal environments. Unfortunately, the wells produce more than 80% water and even worse, the oil producing capacity of these wells is dwindling. To maintain production, however, an average of 82 new producing wells are commissioned per year. Amidst its drilling campaigns, Staatsolie is exploring enhanced oil recovery (EOR) to optimise its production, using a pilot project with polymer flooding which has thus far yielded some favorable results.

Other than its producing onshore acreage, there is a lot of exploration activity in Suriname, both by Staatsolie and other independent companies. The independent companies are primarily focused offshore and include Inpex, Murphy Oil, Tullow Oil, Kosmos Energy and Apache. Others have come and gone over the years, however, none have claimed to find any commercially viable reservoirs as yet. Paradise Oil Company (POC), a subsidiary of Staatsolie is exploring two blocks, Coronie and Block 4 which are onshore and near shore respectively. Both of which they believe have high potential for commercial production. Whereas POC already has the capabilities to explore its onshore block, it is presently sourcing equipment and competencies to explore near shore with a projected commencement by the end of 2013. It should be noted here that Staatsolie is only interested in oil as it does not have any facilities or competencies to manage gas production.

In relation to its refinery, also owned by Staatsolie, a major upgrade is ongoing to

significantly increase capacity, in anticipation of increased oil production. This project is being managed by Saipem on behalf of Staatsolie. The construction phase is 25% completed. The new plant is expected to commence operations at the end of 2014. At that stage, the present refinery products such as diesel, fuel oil and bitumen will be augmented by gasoline, sulfuric acid and an improved grade of diesel.

With all this activity in Suriname around its energy sector, various opportunities for businesses of the Trinbagonian energy sector are apparent in terms of provision of services around exploration and production. Onshore support is required for Suriname’s aging infrastructure and EOR efforts. Near shore and offshore exploration is a bastion of opportunity in Suriname as it is still in its fledgling phase. Offshore drilling is a new area for Staatsolie and as a result, its competencies are limited.

I find the Surinamese to be very patriotic and quite concerned about the development of Suriname as a nation. I deduced that the Surinamese, and rightfully so, expect the Surinamese people to benefit from any company that works in its environment. The entire energy sector is managed by Staatsolie. Staatsolie provides extensive training and development for its staff and only outsources very few specialist services which can not be handled in-house. For example, the only aspects of its onshore production that Staatsolie can not handle are drilling fluids and completions.

Suriname is in a state of mass expansion. Suriname has undertaken projects to expand its refinery and improve its power generation capacity all in an effort to cater for the increased activity expected from an eventual major hydrocarbon find either onshore or offshore. In my opinion, Suriname is preparing for an oil boom which might be closer than you think.

Oil BOOM in SUrinaMe?

by jason coxBusiness Development Manager, HB Rentals LLC

surIname Is preparIng for an oIl boom whIch mIght be closer than you thInk. I accompanIed the energy chamber of trInIdad and tobago on a trade mIssIon to surIname In may 2013, the second such trade mIssIon of the energy chamber to surIname. my prImary reason for attendIng the trade mIssIon was to understand the energy busIness clImate In surIname and secondly, to seek new opportunItIes for my company.

Fill your printing needs, with cpt!


The international energy environment with shale gas, alternative energy plays and the opening up of new provinces in Africa, South America and Eastern Europe demands a rethink of the Pt Lisas model and the role of the NGC. The recent signing of the Mitsubishi DME plant, the successful bid round attracting top tier and mid tier companies as well as the reformulation of some aspects of the tax regime to improve our competitiveness in the Sector is very commendable. But we must implement other transformative changes including:

• Taking bold positions in attractive external acreage and being more outward looking

• Rethink and reengineer NGC and Petrotrin • Change the Industrial relations dynamic and

legislation inside and outside the energy Sector • Resolution of the gas shortage to

downsteamers to allow plants to run at nameplate capacity and to inspire other midstream and downstream companies to come to our jurisdiction with confidence.

non energy ImperatIves Quite simply, government may need to

prioritise the number of pillars being targeted. Respectfully, the focus should be narrowed and must include the manufacturing and construction sectors – key catalysts for growth. As at June 2012, these Sectors were responsible for 147,000 jobs. The Private Sector fully accepts its responsibility to find new markets, develop new products and be innovative! We must extinguish all unnecessary frictional costs (absenteeism, bloated labour rates, poor productivity practices, port inefficiencies and other inefficiency taxes. Only the best product at the best price, marketed in the optimal manner will survive! I would suggest the following:

• Immediate revamp and curtailment of CEPEP to release much needed manpower to the agricultural, services, manufacturing and other sectors.

• Focus training on key and core disciplines including EEET, MET, Blow Moulding and packaging technology, coatings technology etc. There is an excellent opportunity for UWI and UTT to deepen their partnership with private business.

• Avoid “a potential asset bubble in construction” as occurred in 2007/2008 and sequence projects. Relook the role of EMA and business. Companies and good projects are getting strangled in red tape! Introduce Procurement and Local Content legislation. Have all foreign companies wishing to do business in T&T post an appropriate bond to ensure that if and when they leave, local companies are not left “out of pocket.”

• The initial Capital Allowance on Plant and Equipment in the Manufacturing Sector is an extremely powerful initiative. May I also suggest that local businesses be encouraged to invest in ERP technology to marry best practice with new equipment investments. This will ensure equipment excellence is supported by software that enables local businesses to embed best process and practice.

enhance governance and accountabIlIty

There is a growing lack of confidence in many of the institutions that underpin our democracy. Sustainable development and investment in business and in our economy must be founded on confidence. Where confidence dissipates, investors flee! Too many critical institutions do not enjoy the confidence of the public or are actually undermined for political purposes. Numerous resignations have undermined respect and confidence in the Integrity Commission. Everybody – bar none – challenges the authority of the Police Service. Confidence in both institutions must be rebuilt which is critical to investor, public and economic confidence. Equally important, the plethora of cases of board members and commissioners tendering false CV’s and resumes has become almost pandemic. Whose responsibility is it to conduct a proper review and investigative process prior to appointment? Non-performing State Directors cannot be shuffled from one State Enterprises to another if the country is to be on a sustainable path to economic progress! Only the best talent will do! May I respectfully suggest that even the Cabinet process and Cabinet Governance – evidenced by Section 34 and the fire truck fiasco must be overhauled! Systemic risk is likeliest to

occur when governance and accountability are at their weakest. CLICO is but one example which cost the country $20b and nearly destabilised the local and regional financial system. It is absolutely imperative that the Auditor General’s department be strengthened, Local Content and Procurement Legislation be implemented. Campaign Finance Reform is absolutely necessary! Put simply, Governance and Accountability in many State Enterprises must be immediately strengthened in a very deliberate, measured manner. The costs both economically and psychologically are simply too great!

government must leverage the ppp model

Jamaica constructed its highway linking Montego Bay in the north of the island to Kingston using the PPP model. The new highway, a toll road cuts transport times significantly and saves fuel costs between the two cities. In the Bahamas, the Arawak Cay Port Development is being undertaken employing the PPP model! The model contemplates design, development, construction, management, operation and maintenance of a Nassau Container Port and the Gladstone Freight Terminal. On offer is a new Freight Terminal and Warehouse Complex. A similar project was undertaken at the Port of Cotonou which created 450 jobs and opened up land locked West African Countries.

PPPs offer the potential of increased “value for money” and locate investment project management and maintenance in the Private Sector which has been historically more efficient in project management and execution. It also has the upside of providing improved quality and lower costs. An ancillary benefit is that in the case of cash strapped economies, it provides access to vitally needed capital. It is a useful vehicle for transport infrastructure, ports, electricity generation, water distribution and sewerage, Public transport systems, sea ports, airports, telecommunication networks, schools and hospitals. I am advised that there is a pipeline of 90 projects of approximately $5b in value. The key is to develop the right pilot, subject it to the appropriate methodology, oversight, governance and execution. It is an extremely powerful tool which can accelerate infrastructural development. It is one of the initiatives of the new Minister of Finance and which should be encouraged.

to be truly sustaInable (contInued from page 6)



at this time of year with many students finishing their exams and getting ready for graduation, it is easy for parents to want to appease their children with rewards such as use of a vehicle to go to clubs or parties, but are they really ready for the road?

According to research by Professor Godfrey St. Bernard persons aged 15-34 accounted for 46% of road traffic fatalities in Trinidad and Tobago over the last 5 years of which over 50% were aged 15-24 years.

Compared with older drivers, teenage drivers may drink and drive less often, but when they drive after drinking, they are at considerably greater risk of involvement in a crash. Other drugs may also play a role in crashes among young drivers. Research in the USA has proven that teenage drivers are 20 times more likely to be involved in vehicle crashes that feature alcohol, speeding, and other passengers than are middle-aged adults; nighttime crashes involving alcohol and passengers are approximately nine times more likely for teen drivers.

When the risk associated with impaired driving is adjusted for exposure, drivers ages 16 to 20 have the highest risk of crashing per vehicle kilometres traveled, followed by drivers 21 to 29. Young male drivers are at dramatically greater risk than young female drivers.

predictors of impaired Driving

Personal and social factors among adolescents and young adults can predict impaired driving and risky driving;

(a) The perceived environment: more social support for drinking and driving, less parental monitoring, more parental permissiveness, and less perceived risk of alcohol impaired driving, along with less parental nurturing during adolescence.

(b) Personality: more tolerance of deviance, less orientation to parents, more susceptibility to peer pressure, more risk-taking, more hostility, more aggression,

and poorer grades in school, as well as less family connectedness.

(c) Behaviour: early and heavier drinking, cigarette and marijuana use, and more use of other drugs. The perceived environment factors and the personality factors have also predicted risky driving outcomes.

by brent batsonTrinidad & Tobago Police Service - Road Safety Unit

yOUng driVerS and alcOhOlthe four lIves lost In the fatal traffIc crashes on june 9th 2013 was a grIm remInder of both the rIsk and responsIbIlIty that Is attached to motor vehIcle use and we contInue to appeal to all drIvers to help us make our roads safer by makIng safe drIvIng practIces a standard for motor vehIcle use.

road safety

what we can do to reduce the rIsk of young alcohol ImpaIred drIvers In trInIdad & tobago

• Raise the legal age for consumption and purchase of alcohol to 21 years.

• Create a Zero Tolerance classification of alcohol levels permitted in drivers aged 17-21.

• Institute a Graduated Licensing System with time and administrative controls.

• Encourage schools to have guest safe driving lectures and workshops on the risks of alcohol impaired driving.

• Pass “open container” legislation which prohibits the presence of any open alcohol beverage containers in a vehicle.

• Build support networks through the use of maxi and taxi associations in partnership with schools and Parent Teacher Associations to help provide on call alternative transportation to young persons who may have realized that their driver has been drinking alcohol.

• Increase the penalties and enforcement of laws banning the sale of alcohol to minors.

• Increase the frequency of Breathalyser Exercises by the Police as a deterrent.

• Parents, help reinforce the need for safe decision making with teenage drivers by not only having the conversation with

your teenager but by displaying the example to them.


how come technology is not able to adhere when it’s needed most? The answer lies in infrastructure, the maintenance, the cost associated with the actualisation of this area. What cost does your company place on iT? Does your company realise the importance of this area? Technology should be the most considered aspect of any organisation. it’s not about the amount of dollars spent in this area; it is about the effective planning and efficient distribution of iT throughout organisations.

How can IT standardise efficiency? The fact is companies should understand that a product cannot change the way an organisation operates, it’s the understanding of what goals the company needs to actualise with this product, and how are they creating awareness and organising their environment for this product to increase efficiency?

Could you imagine spending $100,000 on new server infrastructure and then constantly having to answer to your Chief Financial Officer why it is not performing how the manufacturer said it would perform? Why is it running slowly? Why did we invest in this? What is it worth? Your first instinct is to blame the re-seller, but what did you do in order to efficiently integrate that infrastructure into your network? Is your core-infrastructure able to take such a system? Can you conclude that your office has the proper power options, the required technical needs to elaborate the capabilities of this system? In essence—did you do your homework?

As a past IT administrator I have had to redeem our department many times trying to battle our worth, trying to get other departments to understand the importance of IT in an organisation. The constant argument with decision makers were, “We were told that we must utilise our current network as it was only placed in two years ago.” Two years ago we were using Legacy systems that required

an eighth of the capacity needed now. As laptops, smart phones and tablets evolve so do your organisation's infrastructure backbone. The element about plug and play is simply a lost relative to present and future IT infrastructures. All new backbones require an element of design which includes higher costs but those costs are needed to invest in business continuity.

Technology's latest solution in utilising current

infrastructures have come in many variations,

such as virtual machines, disk utilisation solutions,

and open architecture systems. These segments

have become organisations' supposed mantra to

the ever-growing expense in IT. The adoption of

these segments are slowly becoming popular in

this region. People are adapting quickly to new

methodologies and new ways of utilising their

resources. This trend may seem an outcome of

hope for IT in companies to reduce CAPEX, but

they still need proper infrastructure and network

backbones to efficiently run.

The argument will always come back to why

do we need this? What impact will

this have on our company’s

performance? You

can probably

b e t

that your competition has their backbone

requirements in order, which gives them the edge

in promoting their company more efficiently. They

will have the advantage because they will be able

to handle proposals faster, get communication

more quickly to end users, efficient transfer of

data in and out of the organisation to speed up

response times and in essence effectively grasp

that customer that could not wait for you. It is

a very serious reality. Are you ready to sacrifice

budget vs. overall operability which will affect

your company’s prosperity?

These are considerations that you must

understand in today’s growing economy, can

your organisation afford to not spend on what’s

needed to be ahead?

are yOU liStening 2 yOUr it dePartMent?

by andrew galtAccount Executive - ICT, Trinidad Systems Limited

Chairman, AmCham T&T Communications Committee

have you ever been In a posItIon where you need to approve an It budget for the upcomIng Quarter but you are completely dIssuaded because of the ever rIsIng cost assocIated wIth maIntenance and the short lIfecycle allocated for upgrades and Infrastructure changes?

busIness

specIal feature: data and InformatIon technology


how much do you know about amCham T&T’s Services & products?Did you know? Our strong mix of formidable local and

international member companies, strong networking links, close association with the U.S. Embassy and alliances with the Association of American Chambers of Commerce in Latin America and The Caribbean (AACCLA) all ensure rapid access to what you need to compete effectively both in local and overseas markets. We can therefore secure for members strategic information on doing business in a particular country as well as set up introductions to the right business organisations or companies in the U.S. and throughout the western hemisphere.

As your door to opportunities in a globalised environment, some of AmCham T&T’s services are listed below.

amCham T&T u.S. business visa facilitationYou are eligible to use this facility for renewal of visas from

the U.S. Embassy for business. In addition, when the automated visa appointment services areas are ‘backlogged’, AmCham T&T may facilitate expedited visa appointments for business travel and training for company personnel. This is available at no cost to the employees of member companies.

amCham T&T introductionsYou may already be in contact with a company with whom you

would like to do business or make an alliance. AmCham T&T will send a letter of introduction for member companies, which will include details such as the length of time your company has been a member of AmCham T&T and your company’s involvement with Chamber activities etc. AmCham T&T will encourage the setting up of a meeting for you to promote your products and services, but will not endorse an individual company product or service, as we represent several competing companies in any one industry.

access to amCham T&T membership DatabaseListed AmCham T&T executives may request at any time from

AmCham T&T the most updated version of our membership database highlighting companies’ names, addresses and executives’ contact information. An excel version is also available.

amCham T&T executive info SessionLaunching a new product or service?AmCham T&T’s InfoSessions are an excellent way of niche

marketing to the decision makers of our 297 member companies, as well as to the wider business community. AmCham T&T will be responsible for sending out notices of the session to our members

what you always wanted to know and never dared to ask about amcham t&t ...

amcham T&T on The inside

amcham T&T commiTTees:

• Communications Committee

• Health, Safety and Environment (HSE) Committee

• Legislative Committee

• Membership Committee

• Programmes and Events Committee

• Security Committee

• Trade and Investment Committee

To join a committee, please contact The amChamT&T Secretariat

[email protected] Tel: (868) 622 4466/0340

and the wider business community, registration, organising the room and refreshments as well as any other administrative duties that may arise.

One-on-One Appointments Through our local and international connections as well as the

international AmCham network, AmCham T&T can arrange one-on-one appointments for companies who are seeking to expand their business in Trinidad and Tobago and the Americas.

incoming & outgoing Trade missionsInformation is available upon request.

amCham T&T monthly meetingsYou will receive notices of our Monthly Meetings, which usually

begin at 8:15 a.m. and end between 9:30 and 10:30 a.m. AmCham T&T business is usually the first item on the agenda, followed by a guest speaker and a discussion session. Occasionally these meetings may take the form of a Luncheon or Dinner. This may be the case if there is a special event or an important overseas visitor. Your company may also choose to become the corporate associate of a particular meeting for a sponsorship fee.

amCham T&T board room rental

AmCham T&T’s conference room is available for meetings, training sessions and board meetings. Send the particular details regarding meeting needs in terms of seating, catering, equipment, etc. and we will arrange it for you.

amCham T&T organsing your event

(Event must be trade or business-related) AmCham T&T can arrange the logistics of your event, all arrangements including sending out invitations via email or otherwise, and special invitation to ministers / diplomatic corps, following up for responses, coordination of logistics at venue before and after function.

Event Email Mailout Service (EEMS)

(Product, seminar or service must be trade or trade-related) EEMS is an email service which gives you the opportunity to detail your event (e.g. conference, seminar, etc.) to the executives listed on the AmCham T&T database (over 1000 executives).

please note that some of amCham T&T services & products carry a nominal fee.

have you ever thought about joInIng

an amchamt&t commIttee?All AmCham T&T's financial members are encouraged

to have representation on the committees in order

to voice their issues and to provide feedback for

the lobbying effort of the AmCham T&T’s Board of

Directors. Committee meetings are another forum

where members can share invaluable experiences and

information with each other. See list of AmCham T&T

Committees.


Coaching on an oil rig is very different to coaching in a corporate environment, but the same processes apply. Caron won people over by showing a genuine interest in the people she lived with. asking them to show her, tell her and help her to really understand their jobs.

The major questions asked were: "What can I do to help you today?"; "What are the main challenges facing you right now?"; "If I gave you a magic wand, what is the one thing that you would fix?" And then getting them to do something about it, same day. By asking these questions, the crew was helped by being able to see her, as making a difference to their lives.

Living on the oil rig with the guys 24 hours a day, with nowhere to go but be in each other's company, Caron used "Corridor Coaching", which was a quick 10min chat while waiting for the kettle to boil. Her genuine interest in people encouraged them to start talking to her and getting help within that 10min break.

There is the belief that some of the most effective coaching happens in short opportunistic exchanges rather than in longer planned sessions

cOrridOr cOaching

by janIce learmond-crIQuI Administrator, Egret Limited

coachIng academy lIcensed traIner caron kIng took In-house coachIng to a completely new level when she accepted a job wIth the oIl and gas Industry for 18 months and spent half that tIme lIvIng aboard an oIl rIg In the north sea. her maIn focus was to help drIve up performance, so anywhere where thIngs weren’t workIng as well as they could do, It was “let’s walk the process, let’s see It, tell me what’s the problem, tell me how It works.”

or as part of a formal coaching programme. This is good news from a manager-coach’s point of view and also good news from an organisational point of view. Coaching is often seen as a heavy burden on people who are already busy; it need not be so.

But before taking advantage of such informal and brief coaching opportunities, it is important to be aware of a major challenge. Usually in a formal and planned coaching, the coachee will often have identified a situation that he/she would like to discuss and will arrive at coaching session with an agenda. But in corridor coaching, the opportune moments have to be seized and there isn’t much time. Managers have to develop their “antennae” for good corridor coaching moments and ask his/her staff member’s permission to coach by asking simply questions such as: ‘Would you like to spend a few minutes talking with me about any of this? Is there any way I can help you plan/review this? Is now a good time to talk about what went well and what went badly there?’

Once we don’t bypass the permission of the team member, and we are genuinely open to

the possibility that someone won’t find feedback from us helpful right now, corridor coaching opens the door to some of the most effective feedback people may ever receive.

The most powerful opportunity of corridor coaching is the opportunity for changing the culture of any organisation. Once people are practicing and using it, corridor coaching becomes much more natural and effortless than formal coaching. Of course, formal coaching sessions are needed for big and complex issues, so it is not being suggested that corridor coaching can replace them. But because of the spontaneity of corridor coaching and the way it is woven into the rest of organisational life, it has the potential to become just part of ‘the way things are done around here’. For corridor coaching to spread rapidly through any organisation, it will require senior management to start practicing it.

Managers in the corporate environment, have to be able to coach their teams to develop their abilities, talents and potential so as to achieve the goals of the organisation. Corridor Coaching can be used along the corridor or as a pre-set organized process in the meeting room. This short process will allow the managers to empower and support their team members, on a daily basis. Team members will be able to improve performance, achieve results, overcome “stuck situations”, unleash their talent and express their greatness.

This is an "unbelievably rewarding experience" if Managers are up for it.

busIness


amcham t&t

cIte up lImItedaddress: #269 Max Street, Palmiste, San FernandoTel: (868) 652-9084Website: www.citeup.comType of business: Cite Up Limited is a regional business provider with branches in Trinidad, Jamaica and Barbados. Driven by a strong leadership and powered talented professionals, Cite Up has over 50 years of experience in customer service, sales, marketing, advertising and public relations and represents a culture built on quality, integrity , reliability and service excellence. Cite up measure success as a company by its ability to deliver value to stakeholders and to surpass the expectations of local and international customers.

florIda purchasIng agencyaddress: 262 Commercial Boulevard, USATel: (954) 776-5170email: [email protected]: Type of business: Florida Purchasing Agency is a purchasing and export services company with over 30 years experience serving the Caribbean area and beyond. They are your one stop shop for all of your purchasing and export needs. Florida Purchasing Agency's focus is on providing great customer care and expediting emergencies. By offering competitive prices, immediate response time, and on-time deliveries, they can supply overseas manufactures with all their parts and equipment needs quickly.

jet box lImItedaddress: 33 Picton Street, Newtown, Port of SpainTel: (868) 622-6964, email: [email protected]: www.jetboxinternational.com

Jet Box is an international freight/forwarding company providing International air and ocean freight, logistics, Caribbean and local door to door courier service throughout Trinidad and Tobago. Jet Box has a highly experienced management team and service professionals specialising in providing service in a time sensitive manner, to meet the unique needs and requirements of customers. Since its inception in October 2001, Jet Box Limited have worked diligently to build reputation on trust, reliability, dependability, and professionalism.

mIatrIn medIcal lImItedaddress: 2A Christina Court, Boissiere #1, MaravalTel: (868) 628-4645Website: www.biomedicalintl.comType of business: Biomedical International Corporation was organised under the laws of the State of Florida, incorporated the February 11, 1982. The Corporation was formed for, is and will promote the sale and service of hospital equipment, medical supplies and laboratory equipment and supplies to healthcare providers all over the world.

natIonal energy corporatIon of trInIdad and tobago lImItedaddress: Corner Rivulet and Factory Roads, Brechin Castle, CouvaTel: (868) 636-8471Website: www.nec.co.ttType of business: National Energy Corporation of Trinidad and Tobago Limited (NEC) is a member of The National Gas Company of Trinidad and Tobago Limited (NGC), and for more than 30 years has been committed to supporting the infrastructure of the energy industry, while providing quality service in the area of natural gas based development. Included in their services are optimising and developing local energy services, development and implementation of energy policy and the management and operations of ports and marine facilities. They take pride in providing innovative energy solutions to their stakeholders.

neal & massy groupaddress: 63 Park Street, Port of SpainTel: (868) 625- 3433fax: (868) 627-9061Website: www.neal-and-massy.com

Neal & Massy’s 50 plus companies are grouped into two (2) major portfolios: (1) the integrated consumer portfolio and (2) the strategic investment portfolio, to services diverse industries, namely: food retail, distribution and logistics; consumer finance; automotive and industrial equipment; insurance; energy and industrial gases; information technology and communication; real estate and property management. Main operations located in Trinidad and Tobago, Barbados, Guyana and Jamaica.

nwt enerprIses lImItedaddress: Lot #3, Chanka Trace, El Socorro, San JuanTel: (868) 675- 9676fax: (868) 638-3438email: [email protected] of business: In 1999, Nicholas Ward Tannous envisioned a complete supply chain company providing first class service for retailers and brand builders of any item anywhere in the world. The company started up with minimal staff, a few SKUs coming out of the USA and one van. NWT Enterprises Ltd., headquartered in El Socorro, Trinidad, now more than ten years later, has grown into a multi-million dollar full service general merchandise distribution business importing thousands of SKUs from Asia, Europe, North and South America. While mainly servicing the local market of Trinidad and Tobago, NWT has also managed to expand its services to other Caribbean islands. Staff has grown to more than 50 personnel with a viable vehicle fleet.

pepper advertIsIng lImItedaddress: 9 Warner Street, NewtownTel: (868) 622-2762fax: (868) 628-5788email: [email protected]: www.peppertt.com

Type of business: Based in Trinidad & Tobago, Pepper Advertising Limited was launched in September 2005. Pepper is a full service advertising agency that offers traditional advertising & digital (internet) marketing services.

superIor energy servIces trInIdad lImItedaddress: Edoo’s Industrial Estate, 8A Bamboo Junction, La RomaineTel: (868) 657- 7040fax: (868) 697- 7719Website: www.superiorengergy.comType of business: Founded in 1989 by Terence Hall, Superior Energy has grown from 125 employees and $12 million in revenues to a publicly traded company with revenues in excess of $4.5 billion and nearly 14,000 employees worldwide. By the mid-1990s, Superior offered a full inventory of specialised tools for drilling, production and well workover activities. Following its public offering in 1995, Superior grew quickly by acquiring more than 10 small- and mid-sized well intervention and oilfield tool rental companies in just three years, growing revenues from $23.6 million to $91.3 million in that time. In 1999, Superior Energy Services merged with Cardinal Services, the market leader in mechanical wireline services in the Gulf of Mexico and also the largest owner and operator of liftboats in the region.

seaboard marIne (trInIdad) lImItedaddress: 29 Gallus Street, WoodbrookTel: (868) 627- 7746fax: (868) 627-5676email: [email protected]: www.seaboardmarine.comType of business: Seaboard Marine is a world class ocean carrier with container shipping services between the United States, the Caribbean and Central and South America. Seaboard Marine’s operations include warehousing in Miami for cargo consolidation and storage and an 80 acre terminal at the Port of Miami. At the Port of Houston, Seaboard operates a 62 acre cargo terminal facility with over 690,000 square feet of on-dock warehouse space for storage of bagged grains, resins and other cargoes. Scheduled vessel calls are also made in Brooklyn, New York, Fernandina Beach, Florida and New Orleans, Louisiana. Seaboard’s fleet consists of nearly 40 vessels and over 50,000 dry, refrigerated specialised containers and related equipment.

trInmesh lImItedaddress: Lot 8A – C, O’Meara Industrial Estate, ArimaTel: (868) 642-3309fax: (868) 646- 3730email: [email protected]: www.trinmesh.comType of business: Trinmesh is a manufacturer of steel products including BRC, chainlink and roofing materials.

aMchaM t&t'S new MeMBerS


T h o u g h T L e a d e r s h i p

how long can this continue and how will it alter the relationship between manufacturers, consumers and products? a single disruptive technology may show us just how far things can go.

Additive Manufacturing or 3D Printing has been used by manufacturers for decades as a means of prototyping. Using processes not dissimilar to an inkjet printer, 3D printers lay down material in a repetitive, highly controlled manner. But instead of depositing ink in an X-Y matrix, 3D printers utilise a third Z-axis. Using a variety of feedstock materials, the product is gradually built up in a series of layers.

Perhaps most importantly, 3D printing is progressively being used not just for prototyping, but for actual manufacturing as well. Consider the possibilities: readily shareable, digital designs can be used to create anything from trinkets to clothing to replacement parts for the 3D printers themselves. Even food has been assembled using these techniques. The possibilities are endless.

But why stop there? Giant versions of this concept are being explored as a means of manufacturing buildings – literally “printing” them on site. In a far more personal implementation, in 2012, a woman had her lower jaw replaced with one printed using titanium powder. Currently, work is being done in labs to clone living cells and use 3D printers to build structures and organs such as a bone or kidney, effectively creating replacement parts for bodies without fear of rejection.

So if we can print virtually anything, why not print the printers themselves? This is actually one of the goals of the RepRap Project. (Short for replicating rapid prototyper.) The RepRap printer has been designed so that nearly all of its parts can be self-manufactured. (While assembly still requires human hands, this isn’t likely to remain the case for long.) This means that for an extremely small investment, any village in any part of the world could acquire the ability to manufacture all manner of goods. As least as importantly, they would have the ability to self-manufacture a fleet of these printers, allowing them to scale to meet the needs of a sizeable population. Printers could be dedicated to a particular group or type of product. As parts wore out or individual printers broke down, replacements could be made using the other machines.

Such a technology stands to completely transform our world and how we do things. As 3D printing develops and matures, what will it do to product cycles, the manufacturing

process and profitability, not to mention the world economy?

3D printing is still in the early stages of its development and is a considerable number of years from being a mature technology. Assuming that as with so many technologies, it continues to improve both in terms of performance and usability, in its mature phase it could be very sophisticated. Product quality could be equivalent to that achieved using current manufacturing techniques and at a tiny fraction of the cost. The progression to this mature phase will probably occur over the next decade.

A related, but even more transformative technology will be molecular assemblers. An outgrowth of nanotechnology, such assemblers are still some ways off, with commercial implementation not arriving until the mid- to late- 2020s. Unlike 3D printing which even at high resolution lays down millions of molecules at a time in a “top-down” approach, molecular assembly will build from the “bottom-up” using individual atoms and molecules. This process will allow a degree of control that is unattainable using conventional manufacturing methods. Though there are many technical hurdles still to overcome, in time previously unimaginable materials, structures and devices will become possible using these methods.

Perhaps as disruptive as the technologies themselves is the potential for decentralisation. Much production would no longer need expensive factories. If such devices become widely available at the consumer level, distribution for many types of goods could all but disappear.

3d Printing and the FUtUre OF cOnSUMeriSM

the next bIg thIng:

it’s long been acknowledged that the rate of technological change is accelerating. one outgrowth of this is that manufacturing processes are speeding up and product development times are shrinking. as a result, processes that once took months, can now take days or even hours.by rIchard yonck

“currently, work Is beIng done In labs to clone lIvIng cells and use 3d prInters to buIld structures and organs such as a bone or kIdney, effectIvely creatIng replacement parts for bodIes wIthout fear of rejectIon.”

richard yonck is a foresight analyst with Seattle-based Intelligent Future LLC, and is Computing /Artificial Intelligence Contributing Editor for The Futurist magazine. He writes and speaks about future technology and its potential impact on society.


Such a technology could go a long way toward filling basic material needs for nearly all of the world’s population. Poverty as we currently define it could rapidly become a thing of the past.

It may seem trivial, but in such a world, how would the haves distinguish themselves from the have-nots? One way might be through the particular designs available to them. As with so many definers of status, exclusivity would still be one of the factors that distinguishes a high-end product. While hand-craftsmanship will always be one such measure, the fact is if the end result is visually and functionally indistinguishable, much of the cachet could be lost. However, the discriminating buyer could still look to top-end designs and designers for that unique item.

But this assumes very tight intellectual property (IP) protection. In a world where such designs exist as distributed electronic blueprints, there would be considerable incentive to acquire those designs of significant value. Over the past few decades, we’ve seen the many issues and difficulties that have arisen with digital rights management (DRM) for the music and movie industries. No matter how clever the anti-piracy measures implemented, counter measures are quickly developed as a means of “cracking” and circumventing them. This state of affairs will likely continue as long as sufficient economic incentive exists.

3D printing stands to turn current economic models on their heads. A decentralised, high-quality, easy-to-use, digitally driven manufacturing process would change everything. The increasingly shorter product development cycles made possible by this and other technologies which automate invention would be impossible for consumers to support given today’s approach to purchasing and ownership. For instance, if a new version of a product was being released each week, the cost to users of keeping up couldn’t be sustained. Additionally, there would be a disincentive to completing a purchase if you knew something newer and better was just around the corner. Finally, ease of piracy and reverse engineering would result in shortening the time a design or device could remain profitable. Without a change in the economics surrounding manufacturing and consumerism, widespread collapse could result.

Implication for business: One solution might be a subscription-based model. As manufacturing and distribution costs approach zero, access to the latest designs and devices based on a regularly recurring payment scheme could be sustained by end-users while maintaining profits. Levels or tiers of access could also provide flexibility for consumers while maximizing profits. Such an overhaul would radically alter the way economies are driven, but such a radical change in technology may make this necessary.

What’s in your Office?

T: 625-3486 • F: 625-4216 • Email: [email protected]

We provide a wide range of Office Furniture

Solutions

• Modular Stations

• Partition Systems

• Conference & Training Tables

• Executive

Workstations

• Clerical Workstations

• Reception Centres

• Filing & Storage Cabinets

• Executive Chairs

• Visitor & Task Chairs

3D prinTer maKinG replaCemenT parTS


polIcy Issues

Counterfeited products and illicit trade of unregulated products has a high impact on public health. These activities also violate contraband and intellectual property laws. also involved can be fraud, tax evasion and money laundering.

Counterfeit medicines are fake products

produced without any standards or oversight.

They may contain toxins, inappropriate active

ingredients, no active ingredients or incorrect

dosages of the proper active ingredients.

Counterfeit medicines compromise patients’

health and safety and are responsible for

numerous deaths each year.

Unregulated products are those that do not

comply with local marketing and registration

approvals. These are products that do not have

authorisation to be marketed in Trinidad &

Tobago because they have a different origin or

source, and they do not observe local legislation

in terms of language, information to the

public, etc.

Manufacturing and distributing counterfeit

medication and illicit trade of unregulated

products are growing criminal activities that

threaten the safety of the world’s medicine

supply. There are two principal ways in which a

counterfeit or illegally traded medicine can reach

a patient. The first is through illegal sales directly

to the patient. The second means of exposure is

if counterfeit medicines make their way into the

legitimate supply chain.

A number of factors have contributed to the

increase of these criminal activities. Included

among them are the involvement of under-

regulated wholesalers and re-packagers, the

proliferation of uncertified internet pharmacies,

advancements in technology that make it easier

for criminals to make counterfeit medicines, and

the relatively small risk and penalty faced by

counterfeiters or illegal traders.

Pharmaceutical companies and Trade

Associations like FEDEFARMA are committed

to working with governments and authorities

around the world to address the serious public

health threat posed by counterfeit medicines

and the presence of unregulated products in the

market. We have worked with the governments

of several countries to conduct training

sessions and workshops with customs, tax and

law enforcement officials, and to develop a

common agenda.

When strong anti-counterfeiting laws

and importing regulations are well-enforced,

physicians, pharmacists, and patients can

continue to be confident that the prescription

medicines that reach their patients through

certified pharmacies are authentic. These efforts

enable physicians, pharmacists and hospitals

to prescribe and dispense safe and effective

medicines, helping patients achieve the best

health outcomes possible.

Given the dangers posed to patients by

counterfeit medicines, numerous organisations

have devoted significant resources to fighting

this problem. The FDA has opened up offices

in China, India, Europe, Latin America and

the Middle East to help foster international

cooperation on this global issue. INTERPOL

conducts anti-counterfeiting operations on a

yearly basis through Operation Pangaea.

Additionally, organisations like the Partnership

for Safe Medicines work to inform consumers of

the dangers of counterfeit medication. Members

of the pharmaceutical industry work with all

these groups to help ensure the safety of patients

throughout the world.

The good news is that Trinidad & Tobago

has recognised the impact of this global threat

and is committed to implementing controls. The

selling of counterfeited products in Trinidad &

Tobago has been identified at the highest levels

of Government as manslaughter.

Anti-counterfeiting laws and strong

enforcement efforts help prevent counterfeits

from reaching patients through illegal online

pharmacies or through the pharmaceutical

supply chain. Counterfeit products create harm

to patients and exacerbate health problems by

failing to treat the medical conditions for which

they were prescribed. This creates significant

incremental costs to the health care system.

FEDEFARMA encourages policy changes that

strengthen international anti-counterfeiting

laws, enforce harsh penalties for offenders and

provide additional resources to law enforcement

agencies to coordinate counterfeit detection

efforts internationally. FEDEFARMA is committed

to working with authorities, lawmakers,

and international organisations to prevent

counterfeiting. Given the counterfeiting risks

inherent in medicine importation, FEDEFARMA

strongly supports importation policies that

require health authorities’ certification that

imported medicinal products would be safe for

patients. FEDEFARMA encourages government

monitoring programs as part of the efforts to stem

illegal trade.

about fedefarmaThe Central American Federation of

Pharmaceutical Laboratories (FEDEFARMA for its

initials in Spanish), is the IFPMA regional chapter

clustering fifteen multinational pharmaceutical

research companies, that commercialise their

products in Central America and the Caribbean.

Fedefarma is strongly committed with the

health of the population in all the countries of

this region, and therefore supports all efforts

made to continuously improve the quality, safety

and efficacy of the pharmaceutical products,

through an active relation between the industry

and the regulatory authorities that will provide

clear and stringent regulations.

Battling cOUnterFeit MedicineS

counterfeIted medIcInes are a serIous publIc health threat that reQuIres strong commItment from government, regulatory agencIes, health care professIonals, pharmaceutIcal Industry, trade assocIatIons, dIstrIbutors, pharmacIes and patIents. thIs Is a serIous Issue that reQuIres everyone’s Involvement.

by rodolfo lambourExecutive Director of Fedefarma


2013aMchaM t&t UPcOMing eVentS

august september october

november december

• E-Work Permit Training

AmCham T&T will train 10 companies to use the TTBiZ Work Permit application to electronically submit work permit applications to the Work Permit Secretariat (WPS) of the Ministry of National Security (MNS)

• 17th Annual Health, Safety, Security and Environment (HSSE) Conference & exhibition: hSSe excellence – “achieving economic Success through integrated, innovative hSSe Strategies”

This is the country’s leading HSSE event!

As the only local and regional Conference of its scope and nature, the AmCham T&T Conference & Exhibition continues to provide a unique forum through which businesses can learn extensively about HSSE best practice and apply this knowledge to all aspects of their operations. The event promises to attract over 300 participants, 40 vendors and a wide range of local and international speakers and subject matter experts. The Conference includes Technical Sessions and Panel Discussions on the topics of Occupational Health, Safety, Process Safety, Security, Environment and Disaster Management and Business Continuity. The event also includes a Youth Forum which is attended by secondary school students.

• Post Budget Discussions

AmCham T&T expert panel will discuss the implications for the national community based on the National Budget 2013/2014

monthly meeting: Tba



• 4th Annual Excellence in Health, Safety and Environment (H.S.E.) Awards

The 4th Annual Excellence in HSE Awards Scheme and Ceremony seeks to promote the view that excellence in safety and health and environmental management is integral to sustainable business success by recognizing entities that have HSE well integrated as a key organizational value and in which measurable achievement in HSE performance is linked to productivity and profitability. This event is endorsed by the Ministry of Labour and Small and Micro – Enterprise Development.

Participating organisations will compete for the following awards: 1. Excellent HSE Performance 2. Most Improved HSE Performance & 3. Outstanding HSE Project



• Defensive Driving

Participants will receive practical and theory classes on safe driving

• monthly meeting: Tba

amCham T&T’s annual appreciation partyAmCham T&T’s final event for the year - where we say thank you to all our Members at our final networking event for the year!

interested parties should contact amChamT&T at [email protected] to participate or sponsor an event


download back issues of linkage on our website: www.amchamtt.com

to purchase your copy of the amcham t&t business guide or book advertisements and/or contribute articles in linkage, contact melissa pierretel: (868) 622-4466 / 0340 / 628-2508email: [email protected]

be seen locally, regIonally

and InternatIonally

panel of amcham t&t's july monthly meetIng on the topIc "ImperatIves for competItIveness and sustaInable development":L-R Hugh Howard, President, AmCham T&T; Jwala Rambarran, Governor, Central Bank of T&T; Gerry Brooks, Ansa McAL; Indera Sagewan-Alli, Centre for Competitiveness

.875” spine

Business Guide

Your door

to opportunities in a

globalised environment

AmCham T&T

2012 - 2013

Trinidad & TobagoAmerican Chamber of Commerce of

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advertise on the amcham t&t websitefor very low rates.

Contact melissa pierre, Trade and Communications officer at [email protected]

amcham t&t linkage q2 2013

Documents

energy sector

energy competitiveness

energy efficiency

inexpensive energy

sources of clean energy

sustainable world

issue of linkage

business sector