Prospects for the Oil-Importing Countries of the Caribbean

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Current Energy Context Caribbean countries1 are highly dependent on hydrocarbons for their energy needs. Table 12 demonstrates that the vast majority of primary energy consumed in 2005 was oil, while gas consumption played an important role in the energy matrices of Trinidad and Tobago, the Dominican Republic, and Barbados.3 Trinidad and Tobago and Suriname, the two largest hydrocarbon-producing countries, rely on hydrocarbons for 94 and 72 percent of their energy consumption, respectively. Jamaica, which depends on fuel oil for its bauxite/aluminum industry, is the second most dependent (79 percent). Barbados and the Dominican Republic count on hydrocarbons for more than 60 percent of their energy. Guyana and Haiti – the two poorest countries in this group – are less dependent on hydrocarbons because they rely on less expensive primary energy sources – firewood and bagasse – for more than half of their energy consumption. Although the region is a net exporter of hydrocarbons, all Caribbean countries, except for Trinidad and Tobago, rely on imports to satisfy their consumption of hydrocarbons.4 The major Caribbean importing countries5 had net imports of 179,000 barrels of oil per day (mbd) and 23,000 oil equivalent barrels per day (mboepd) of natural gas in 2005. The region’s dependence on oil reflects its inability to diversify its energy sources. Caribbean countries have not expanded their consumption of natural gas significantly despite Trinidad and Tobago’s high production levels. Nor have they realized their potential for solar, wind, hydropower, and geothermal energy use, in spite of recent efforts in this area. If the current context of rising petroleum prices persists, the reliance of all Caribbean countries – except Trinidad and Tobago – on imported hydrocarbons, especially oil from outside the region, will have an adverse long-run impact on the region’s competitiveness. Table 1. Final Consumption of Primary Energy & Hydrocarbons Products 2005 (% of total energy and mboe/year/10,000 persons) Oil + Products Gas + Products Coal Firewood Bagasse Total Primary + Products % pc % pc % pc % pc % pc % pc Barbados 54% 40.8 8% 2.0 0% 0.0 0% 0.0 11% 8.3 73% 54.8 DR 47% 20.0 14% 0.0 0% 0.0 13% 5.5 5% 2.0 78% 33.3 Guyana 40% 29.1 1% 0.0 0% 0.0 32% 23.2 19% 13.9 92% 67.3 Haiti 26% 5.2 1% 0.0 0% 0.0 63% 12.3 3% 0.6 92% 18.2 Jamaica 77% 80.1 2% 0.0 1% 1.1 2% 1.9 2% 2.4 84% 87.8 Suriname 68% 69.6 4% 0.0 0% 0.0 7% 7.5 0% 0.0 79% 81.1 T&T 7% 38.4 87% 476.0 0% 0.0 0% 0.0 0% 1.4 94% 518.8 Source: OLADE; World Bank World Development Indicators (WDI). 3

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