T&T Energy Sector Must Adapt to Compete Amid Global Shift

Trinidad and Tobago's business model in the energy sector has been criticized for its weaknesses, leading to significant value loss. The country's reliance on foreign capital has resulted in most of the monetary returns and wealth generated going to the owners of that capital, rather than being reinvested in the local economy.

The state-owned Petrotrin was closed, and Heritage Petroleum was created, which some see as an ignominious example of state ownership. However, there are successful national oil companies around the world, such as Saudi Aramco and Petrobras, that demonstrate state ownership can be profitable.

Recently, Venezuela signed a licensing agreement with Shell to develop its Loran offshore natural gas field, which could have implications for Trinidad and Tobago's energy sector. The country must find more efficient ways to invest returns and transition to a different pathway, while controlling its expenditure.