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CARIBBEAN PETROLEUM UPDATE is a monthly Bulletin which highlights petroleum issues affecting or relevant to the Caribbean, international developments that may affect the region’s way of life and movements in oil prices and retail prices for fuel regionally.
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Caribbean Energy Information System (CEIS)
January 2012
The development of the Natural Gas
Industry for years has been linked to
oil prices and the demand for oil
particularly in the more developed
countries. However, the commodity
has not been a globally traded one
mainly due to the fact that the product
was primarily moved by pipelines
hence creating fairly distinct prices and
regional markets across the globe.
With the development
of Liquified Natural
Gas (LNG) in 1964, the
framework has been
dramatically altered as
the product can now be transported
across the globe without the need for
pipeline infrastructure. LNG takes up
much less space, approximately
1/600th the volume of the same
amount of gaseous natural gas. This
allows it to be shipped much more
efficiently via ocean tankers
thereby creating options out-
side of Crude Oil as a primary
petroleum import. The question
brought to mind in recent times is
whether LNG is the future for the pe-
troleum industry?
Trinidad and Tobago has been the
Caribbean’s top producer of Natural
Gas and has developed the industry to
the point where approximately 70% of
the United States demand for LNG has
been met by T&T. LNG from Trinidad
and Tobago has also been transported
to other parts of the world and the
product is also dispatched across the
globe through re-gasification facilities
in other countries such as Canada,
Chile, the Dominican Republic, and
Argentina. In the Dominican Republic,
the use of LNG has been rapidly in-
creasing where the product now forms
approximately one third of the coun-
tries energy matrix with increasing use
in the transportation sector.
The success of the natural gas industry
in Trinidad & Tobago has led to a
boom in the demand for LNG world-
wide. In many other countries across
the globe, the product is increasingly
being used with particular focus on the
electricity and transport sectors. This
increased demand is also partly due to
CARIBBEAN PETROLEUM UPDATE is a monthly Bulletin which highlights petroleum issues affecting or relevant to the
Caribbean, international developments that may affect the region’s way of life and movements in oil prices and retail prices for fuel regionally.
To access CEIS website
CONTACT US
Caribbean Energy Information System
Scientific Research Council
Hope Gardens, Kingston 6, Jamaica
1-876-927-1779 (Telephone)
1-876-977-1840 (Fax)
www.ceis-caribenergy.org
LNG Being Loaded Onto a Tanker Source: Center for Liquefied Natural Gas
continued on page 2/
page 2 Call: 1-876-927-1779 | Caribbean Petroleum Update : January 2012
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
price volatility and supply issues associated with oil and
the obvious need to reduce our dependency on the so
called “Black Gold.” Apart from T&T, Barbados, Domini-
can Republic and Cuba, the other Caribbean countries do
not have the necessary facilities or infrastructure to utilize
LNG resulting in total dependence on imported oil. The
price for oil in comparison to LNG is significantly differ-
ent. The price for Natural gas sells for roughly 4 dollars
per million BTU in the U.S. but as high as 16 dollars in
Japan and Asia. The low LNG prices are mainly a function
of oversupply of gas internationally both due to increased
LNG supply, with significant new capacity coming on
stream globally, and low global demand due to inadequate
infrastructure in some countries to accommodate the
product.
If all Caribbean countries had unrestricted access to LNG
significant economic gains could be achieved. Many
Caribbean nations such as Jamaica that depend heavily on
Crude Oil imports would welcome the idea of LNG
imports. However, many factors have restricted significant
progress in this area. One such factor relates to the
non existence of the local infrastructures such as a
re-gasification plant and pipelines to convert LNG to its
gaseous state and to transport the LNG for use.
Like Jamaica, many other Caribbean countries are desir-
ous of using the product to fuel the electricity sector. How-
ever, most of the existing generating plants are not
equipped to use the product and as such a complete mod-
ernization of these electricity generating facilities would
be required. To do so would require great capital invest-
ments on the part of investors which many are reluctant to
take on not having any guaranteed LNG supply arrange-
ments in place. The modernization or building of generat-
ing facilities to accommodate the use of LNG as the pri-
mary generating fuel would also take years as this would
not happen at the snap of a finger. The necessary legisla-
tions and framework would also have to be in place to ad-
dress issues regarding storage, use and transportation of
the product inland
The availability and supply of LNG from Trinidad at
agreed or affordable prices is another factor. Inadequate
supply at any one time can lead to price increases, which
Is Shale Gas/LNG the Future for the Caribbean Petroleum Industry?.................continued from page 1/
continued on page 3/
signal to production companies the need to increase the sup-
ply of natural gas to the market. Trinidad over the years has
increased production to satisfy demand contracts with the
United States. However, the pace at which T&T has sought
to develop supply contracts with its regional neighbours has
been slow as the necessary infrastructure and consensus on
pricing have not materialized. This situation may very well
be dispelled in the near future with the United States an-
nouncing increased production of Shale gas and their possi-
bility of becoming a net exporter by sometime in 2012. This
could impact and reconfigure the regional energy market of
which price is an important corollary. A new era and restruc-
turing of where and how present and prospective natural gas
importing nations of the world source their supplies could be
at hand. The diversification of the Caribbean nations energy
mix may possibly be closer with U.S. possible intervention
into the Caribbean market. Despite this new development,
Trinidad & Tobago LNG experts are confident that the na-
ture of their gas contracts remains sound. However, that
said, the question at hand is whether Trinidad & Tobago is
in a state of denial or fooling themselves? Supply and de-
mand are interlinked and both drive prices, If U.S. is able to
satisfy its local demand for LNG, exports from Trinidad &
Tobago may no longer be required in such large quantities
thereby forcing the twin island to find new markets. Addi-
tionally the U.S. may look at tapping into the Trinidad’s ex-
port market and possibly there might be some level of price
convergence. Oil may no longer be the primary petroleum
product if plans by nations having Natural Gas or Shale Gas
resources are expedited. It would be “a dream come”
through for many Caribbean nations if they too, could boast
a less than US$0.10/Kwh for electricity from Natural Gas.
Bearing in mind that demand and supply determine prices,
there is a strong likelihood that if the necessary steps are
taken to put the necessary infrastructures in place to accom-
modate the use of LNG then this product could become the
primary fuel of choice for Caribbean nations and the World
at large.
Caribbean Petroleum Update : January 2012 | Call: 1-876-927-1779 page 3
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
Below is a Map of the World Shale Gas Resources.
continued on page 4/
Is Shale Gas/LNG the Future for the Caribbean Petroleum Industry?.................continued from page 2/
ADVANTAGES OF LNG
LNG has very low particulate emissions because of its low
carbon to hydrogen ratio.
There are negligible evaporative emissions, requiring no rele-
vant control.
Due to its low carbon-to-hydrogen ratio, it produces less car-
bon dioxide per GJ of fuel than diesel.
It has low cold-start emissions due to its gaseous state.
It has extended flammability limits, allowing stable combus-
tion at leaner mixtures.
It has a lower adiabatic flame temperature than diesel, leading
to lower Sulphur emissions.
It has a much higher ignition temperature than diesel, making
it more difficult to auto-ignite, thus safer.
It contains non-toxic components.
When released to the atmosphere and evaporated it is much
lighter than air and thus it is safer than spilled diesel.
Methane is not a volatile organic compound (VOC).
Engines fuelled with natural gas in heavy-duty vehicles offer
more quiet operation than equivalent diesel engines, making
them more attractive for use in urban areas.
It has nearly zero sulfur levels and, thus, negligible sulfate
emissions.
LNG has little to no chance of igniting or exploding should a
spill occur.
page 4 Call: 1-876-927-1779 | Caribbean Petroleum Update : January 2012
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
Rank Country
Proved Natural Gas
Reserves
(million cubic
meters)
Per capita
(thousand cubic
meters)
per square km
(thousand cubic
meters) Date Rank Country
Proved Natural
Gas Reserves
(million cubic
meters)
Per capita
(thousand
cubic meters)
per square km
(thousand cubic
meters) Date
1 Russia 47,570,000 339.69 2,904.60 January 2009 est. 51 Philippines 98,540 1.01 330.5 January 2009 est.
2 Iran 29,610,000 441.69 19,332.80 January 2010 est. 52 Chile 97,970 5.9 131.7 January 2009 est.
3 Qatar 25,260,000 30,313.76 2,180,217.50 January 2009 est. 53 Italy 94,150 1.62 320.1 January 2009 est.
4 Turkmenistan 7,940,000 1,625.42 16,896.10 January 2009 est. 54 Bahrain 92,030 126.45 124,197.00 January 2009 est.
5 Saudi Arabia 7,319,000 255.14 3,404.70 January 2009 est. 55 Congo (Republic) 90,610 22.58 265.3 January 2009 est.
6 United States of America 6,731,000 21.91 734.7 January 2009 est. 56 Sudan 84,950 2.07 35.8 January 2009 est.
7 United Arab Emirates 6,071,000 1,265.19 72,619.60 January 2009 est. 57 Cuba 70,790 6.18 644.6 January 2009 est.
8 Nigeria 5,215,000 34.95 5,725.90 January 2009 est. 58 Tunisia 65,130 6.21 419.2 January 2009 est.
9 Venezuela 4,840,000 180.5 5,487.20 January 2009 est. 59 Romania 63,000 2.84 274 January 2009 est.
10 Algeria 4,502,000 131.72 1,890.20 January 2009 est. 60 Namibia 62,290 29.54 75.7 January 2009 est.
11 Iraq 3,170,000 109.52 7,247.90 January 2009 est. 61 Denmark 61,300 11.14 1,444.60 January 2009 est.
12 Indonesia 3,001,000 12.49 1,656.60 January 2009 est. 62 Rwanda 56,630 5.41 2,295.70 January 2009 est.
13 Kazakhstan 2,407,000 156.3 891.6 January 2009 est. 63 Korea (South) 50,000 1.02 515.9 January 2008 est.
14 Malaysia 2,350,000 91.38 7,150.30 January 2009 est. 64 Afghanistan 49,550 1.74 76 January 2009 est.
15 Norway 2,313,000 496.29 7,601.50 January 2009 est. 65 Serbia 48,140 6.52 621.4 January 2009 est.
16 China 2,265,000 1.69 236.7 January 2009 est. 66 Equatorial Guinea 36,810 58.11 1,312.30 January 2009 est.
17 Uzbekistan 1,841,000 66.69 4,327.70 January 2009 est. 67 New Zealand 33,980 8.06 126.9 January 2009 est.
18 Kuwait 1,794,000 666.63 100,684.70 January 2009 est. 68 Croatia 30,580 6.81 546.3 January 2009 est.
19 Egypt 1,656,000 19.93 1,663.60 January 2009 est. 69 Israel 30,440 4.21 1,406.50 January 2009 est.
20 Canada 1,640,000 48.97 180.3 January 2009 est. 70 Cote d'Ivoire 28,320 1.37 89.1 January 2009 est.
21 Libya 1,540,000 244.04 875.2 January 2009 est. 70 Gabon 28,320 18.69 109.9 January 2009 est.
22 Netherlands 1,416,000 84.71 41,778.50 January 2009 est. 70 Mauritania 28,320 9.05 27.5 January 2009 est.
23 Ukraine 1,104,000 24.16 1,905.60 January 2009 est. 73 Ethiopia 24,920 0.29 24.9 January 2009 est.
24 India 1,075,000 0.92 361.6 January 2009 est. 74 Ghana 22,650 0.95 99.5 January 2009 est.
25 Pakistan 885,300 5.02 1,148.40 January 2009 est. 75 Japan 20,900 0.16 57.3 January 2009 est.
26 Australia 849,500 39.95 110.6 January 2009 est. 76 Austria 16,140 1.97 195.8 January 2009 est.
26 Azerbaijan 849,500 103.11 10,280.90 January 2009 est. 77 Slovakia 14,160 2.59 294.4 January 2009 est.
26 Oman 849,500 248.53 2,744.70 January 2009 est. 78 Ireland 9,911 2.36 143.9 January 2009 est.
29 Bolivia 750,400 76.77 692.7 January 2009 est. 79 Ecuador 8,919 0.61 32.2 January 2009 est.
30 Vietnam 610,000 7.01 1,967.30 January 2009 est. 80 Georgia 8,495 1.84 121.9 January 2009 est.
31 Trinidad & Tobago 531,500 432.13 103,646.60 January 2009 est. 80 Turkey 8,495 0.11 11 January 2009 est.
32 Yemen 478,500 20.09 906.3 January 2009 est. 82 Hungary 8,098 0.82 90.4 January 2009 est.
33 Argentina 441,700 10.8 161.4 January 2009 est. 83 France 6,937 0.11 12.6 January 2009 est.
34 Brunei 390,800 1,006.72 74,226.00 January 2009 est. 84 Tanzania 6,513 0.16 7.4 January 2009 est.
35 Mexico 372,700 3.35 191.7 January 2009 est. 85 Taiwan (Rep. of China) 6,229 0.27 193.1 January 2009 est.
36 Brazil 365,000 1.84 43.1 January 2009 est. 86 Jordan 6,031 0.95 67.9 January 2009 est.
37 Great Britain & Northern Ireland 342,900 5.61 1,417.40 January 2009 est. 87 Bulgaria 5,663 0.79 52.2 January 2009 est.
38 Peru 335,300 11.35 262 January 2009 est. 87 Kyrgyzstan 5,663 1.04 29.5 January 2009 est.
39 Thailand 317,100 4.81 620.7 January 2009 est. 87 Somalia 5,663 0.58 9 January 2009 est.
40 Myanmar 283,200 5.88 433.4 January 2009 est. 87 Tajikistan 5,663 0.77 40 January 2009 est.
41 Angola 269,800 21.08 216.4 January 2009 est. 91 Czech Republic 3,964 0.39 51.3 January 2009 est.
42 Syria 240,700 11.93 1,310.80 January 2009 est. 92 Guatemala 2,960 0.24 27.6 January 2006 est.
43 Papua New Guinea 226,500 37.39 500.2 January 2009 est. 93 Belarus 2,832 0.29 14 January 2009 est.
44 East Timor 200,000 188.19 13,446.30 January 2006 est. 94 Spain 2,548 0.06 5.1 January 2009 est.
45 Germany 175,600 2.13 503.6 January 2009 est. 95 Greece 1,982 0.18 15.2 January 2009 est.
46 Poland 164,800 4.28 541.7 January 2009 est. 96 Morocco 1,501 0.04 3.4 January 2009 est.
47 Bangladesh 141,600 0.91 1,087.80 January 2009 est. 97 Benin 1,133 0.13 10.2 January 2009 est.
48 Cameroon 135,100 7.16 285.8 January 2009 est. 98 Congo (Dem. Rep.) 991 0.01 0.4 January 2009 est.
49 Mozambique 127,400 5.88 162 January 2009 est. 99 Albania 850 0.23 31 January 2009 est.
50 Colombia 105,900 2.32 95.5 January 2009 est. 100 Barbados 142 0.5 329.3 January 2009 est.
101 South Africa 27 0 0 January 2006 est.
For non-listed countries is no information available.
1 cubic meter corresponds to 1.308 cubic yards.
Source: CIA World Factbook (2010-08-04)
Proved Natural Gas Reserves of the WorldTable 1
Is Shale Gas/LNG the Future for the Caribbean Petroleum Industry?.................continued from page 3/
ADVANTAGES OF LNG (cont’d)
When LNG is vaporized into its gaseous form, the fuel will
only burn when mixed with air in concentrations of 5 and
15%.
LNG and the vapors associated with it do not explode in an
open environment making the product safer than any other
Petroleum fuel.
Compared with other fossil fuels, Natural gas is relatively
clean with regards to air pollution and greenhouse gas emis-
sions and has larger proven reserves than Crude Oil.
Liquefaction makes it possible to market important gas re-
serves located in remote areas, far away from consumer
countries, as it reduces the volume: 1litre of liquefied natural
gas (LNG) corresponds roughly to 600 litres of natural gas.
Caribbean Petroleum Update : January 2012 | Call: 1-876-927-1779 page 5
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
CC A R I BA R I B PP E T R O L E U ME T R O L E U M NN E W SE W S & H& H A P P E N I N G SA P P E N I N G S
CUBA
Oil rig already in Cuban waters after US
inspection >> 20/01/2012
Fidel Castro warns again about nuclear war and climate
change >> 09/01/2012
Cuba boosts use of sugarcane biomass to generate
electricity >> 22/12/2011
Cuba and Venezuela sign $1.6 billion in cooperation
accords >> 21/12/2011
HAITI
Haiti leader launches power programme >> 24/01/2012
GUYANA
Guyana has a great deal of promise in oil and gas, says
energy executive >> 28/01/2012
Guyana continues hunt for offshore oil >> 26/01/2012
JAMAICA
Private equity firm, Blue Equity LLC, on Tuesday ac-
quired control of Cool Petroleum Holdings Limited
which operates the Shell gas station and oil
distributorship in Jamaica. >> 11/01/2012
MONSTERRAT
Shortage of aviation fuel expected to affect air travel to
Montserrat >> 20/12/2011
VENEZUELA
Petrobras' CEO participates in Global Pact meeting at
UN Headquarters >> 16/12/2011
Venezuela Increasing Influence in Region Through
Petrocaribe >> 13/12/2011
Venezuelan government "prepared to amicable arrange-
ment" with Exxon >> 06/12/2011
Petrocaribe to boost Caribbean refining
storage >> 06/12/2011
Venezuela Confirms Buys Jets From Brazil’s
Embraer >> 03/12/2011
Venezuelan oil exports to the US down to 1992
levels >> 01/12/2011
INTERNATIONAL
UN watchdog group visits Iran as conflict over oil em-
bargo continues >>30/01/2012
No energy industry backing for the 'F word' >>
29/01/2012
Iran nuclear scientist killed in car bomb attack >>
12/01/2012
Iran tests cruise missiles over Strait of Hormuz
(Threatens closure of strait, passageway for one-sixth the
world's oil supply) >>03/01/2012
Oil price soars on promising economic news >>
21/12/2011
Drilling in the caribbean sea courtesy embassy of
Colombia Washington
page 6 Call: 1-876-927-1779 | Caribbean Petroleum Update : January 2012
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
REGULAR UNLEADED GASOLINE AVERAGE PRICES AT THE PUMP
January 2012
Retail prices for Regular Unleaded Gasoline in the sixteen Caribbean countries reviewed at the end of January 2012, re-
mained relatively stable in nine countries. Marginal decreases were seen in Belize and BVI while the other five countries
saw increases in the range of 1% and 5% when compared to the previous month. The average retail price at the end of Janu-
ary 2012 for the product over the sixteen countries when compared to the average retail price seen in December 2011 re-
mained relatively the same.
NOTE:
*US Gallon = 3.785 L
*Imperial Gallon = 4.546 L
*As at November 1, 2009
MTBE was phased out from
all gasoline blends in Ja-
maica and replaced with
10% Ethanol.
CHART:
See prices for other products at See prices for other products at See prices for other products at www.ceiswww.ceiswww.ceis---caribenergy.orgcaribenergy.orgcaribenergy.org ...
Regular Unleaded Gasoline Average Retail Price (US$/Litre) 2012
COUNTRIES J A NJ A N
ANTIGUA/ BARBUDA 1.23
BAHAMAS [91 OCT] 1.33
BARBADOS 1.55
BELIZE [87 OCT] 1.41
B.V.I. [87 OCT] 1.26
DOMINICA 1.12
GRENADA (95 OCT) 1.23
GUYANA 1.11
JAMAICA 87 Octane[E10] 1.23
MONTSERRAT 1.19
ST. KITTS/ NEVIS 1.20
ST. LUCIA 1.21
ST. VINCENT/GRENADINES 1.19
SURINAME [95 OCT] 1.40
TRINIDAD/[92 OCT] 0.42
TURKS/ CAICOS 1.58
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
US$
/Litr
e
16 Caribbean Countries
Comparative Retail Pump Prices
Regular Unleaded GasolineJANUARY 2012
Caribbean Petroleum Update : January 2012 | Call: 1-876-927-1779 page 7
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
International Crude Oil prices over the period Novem-
ber 2011 to January 2012 saw prices on the upward
trend in January when compared to the two previous
months. The highest weekly price seen in January for
the product was US$102.39/BBL - reflected at the
end of the 1st week. Crude Oil prices for the month
of January remained close to US$100/BBL for the
entire month. The average price for the product in
January (US$100.05/BBL) was approximately 2% and
4% higher than December and November 2011 re-
spectively.
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primary report of historical annual petroleum energy
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US$/B
BL
76.19
88.14
109.61
38
48
58
68
78
88
98
108
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Yr Avg
US$
/BBL
Period
Average Monthly World Crude Oil Prices (2009 - 2011)
2009 2010 2011
99.32100.08102.39
80.00
85.00
90.00
95.00
100.00
105.00
110.00
115.00
120.00
WK 1 WK 2 WK 3 WK 4 Mth Avg
US$
/BBL
Period
Average Weekly & MonthlyCrude Oil Prices
(Nov-11 - January 2012)
Nov-11
Dec-11
Jan-12