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| Map of Orinoco Oil Belt shows proximity to Trinidad, which is geologically connected |
The paper quoted Fitzgerald Jeffrey as saying that former Prime Minister Patrick Manning felt it was not cost-effective to pursue deep-sea oil exploration. Jeffrey said it was felt that oil exploration would be too costly.
“We felt diversification of the economy was better. Even though we heard of this vast oil accumulation, it was risky business. The problem in T&T has to do with geology. A lot of the oil is found in tracks and that is what makes the finding of oil difficult,” Jeffrey said.
He was responding to a report from the United States Geological Survey that estimates that 513 billion barrels of "technically recoverable heavy oil" exists in the Orinoco Oil Belt.
The Guardian reported that the oil migrates northwards towards Trinidad from a deeper basin to the shallow southern basin platform forming the Orinoco Oil Belt.
It said the U.S. report estimates of the oil resource are based on work done by a team of US geologists along the East Venezuelan Basin Province. The report, which was published in October 2009, stated that the actual oil volume is 513 billion barrels and probable volumes could be in excess of one trillion barrels.
Jeffrey admitted that the PNM was aware of the potential and remarked that the "Jubilee" oil find off Trinidad’s south-western coast announced last by Prime Minister Kamla Persad-Bissessar last week may be "the tip of the iceberg”.
Jeffrey's leader, Keith Rowley, has stated that the find is bogus and that it is not possible to evaluate the amount of oil.
He said, "48 million barrels of oil...cannot be evaluated by any known standard. The standard by which we evaluate reservoirs is not there. Therefore, one has to ask of the Ministry of Energy, what is the basis of this misrepresentation coming from the Ministry?"
Rowley stated further that the find was not new because since 2007 Petrotrin had commissioned the Venezuelan firm Vetra Consultants to do a field development plan for the area. He said the firm evaluated two scenarios:
"In Trinidad, because of the geological faults in the southern basin, oil exploration is expensive and risky because of migration.
"I think there is more oil and gas to be found but one of the problems is that the good crude tends to be more in the marine environment and we have to go in deeper horizons to get that crude. With the cost of oil per barrel, it is not feasible to go into the deep,” Jeffrey said.
He said the PNM did't care to investigate the possibility of finding new oil, choosing instead to to diversify into plastics and aluminium. He told the Guardian, “We have to get away from the petroleum industry and diversify."
The paper also quoted the president of the Granville Community Council, Shankar Teeluchsingh, as saying the PNM tried to deny T&T access to the oil riches of the Orinoco.
He said Venezuela is capitalising on this vast oil reserve and the U.S. is now looking to invest in Venezuela’s oil industry.
Jeffrey admitted that the PNM was aware of the potential and remarked that the "Jubilee" oil find off Trinidad’s south-western coast announced last by Prime Minister Kamla Persad-Bissessar last week may be "the tip of the iceberg”.
Jeffrey's leader, Keith Rowley, has stated that the find is bogus and that it is not possible to evaluate the amount of oil.
He said, "48 million barrels of oil...cannot be evaluated by any known standard. The standard by which we evaluate reservoirs is not there. Therefore, one has to ask of the Ministry of Energy, what is the basis of this misrepresentation coming from the Ministry?"
Rowley stated further that the find was not new because since 2007 Petrotrin had commissioned the Venezuelan firm Vetra Consultants to do a field development plan for the area. He said the firm evaluated two scenarios:
- the total value for the project life of 20 years is US$703 million with investments of US$107 million
- For the same period of 20 years for revenues of US$140 million and expenses of about US$165 million
"In Trinidad, because of the geological faults in the southern basin, oil exploration is expensive and risky because of migration.
"I think there is more oil and gas to be found but one of the problems is that the good crude tends to be more in the marine environment and we have to go in deeper horizons to get that crude. With the cost of oil per barrel, it is not feasible to go into the deep,” Jeffrey said.
He said the PNM did't care to investigate the possibility of finding new oil, choosing instead to to diversify into plastics and aluminium. He told the Guardian, “We have to get away from the petroleum industry and diversify."
The paper also quoted the president of the Granville Community Council, Shankar Teeluchsingh, as saying the PNM tried to deny T&T access to the oil riches of the Orinoco.
He said Venezuela is capitalising on this vast oil reserve and the U.S. is now looking to invest in Venezuela’s oil industry.
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