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300 250 200 150 100 50 0 Figure 7. Natural Gas: Net Exports of T&T and Net Imports of Other Caribbean Countries (mboepd) 1998-2005 NX Gas T&T NM Gas Other Caribbean Countries 1998 1999 2000 Source of Figures 5-7: OLADE. 2001 2002 2003 2004 2005 In addition to exporting primary energy, the Caribbean has a refining capacity of 1.7 million barrels per day.8 The region’s strategic location between Mexico, Venezuela, and the United States, combined with recent problems with domestic refining capacity in the United States, has led to considerable exports of oil products from the region. Although most refining for export to the United States occurs in the U.S. Virgin Islands, Trinidad and Tobago and Jamaica have recently taken steps to increase their refining capacity. Policy Trends to Increase Competitiveness Despite the slow progress in reducing their dependence on oil imports, Caribbean countries have taken great strides to do so during the past decade. All countries except Trinidad and Tobago have adopted similar energy policies implicitly or explicitly to soften the effect of high oil prices and maintain their competitiveness. These policies attempt to: 1) diversify energy sources; 2) improve energy efficiency; 3) reduce reliance on imported petroleum products; and 4) use innovative financial instruments, such as carbon financing and low-interest loans for petroleum, to lessen or smooth the impact over time.9 The implementation of these policies has taken place at the regional and domestic levels. 8PDF Image | Prospects for the Oil-Importing Countries of the Caribbean
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