TRINIDAD & TOBAGO: Energy Dependent
Sep 1, 2010
Trinidad & Tobago’s economy is dependent on oil and gas. An expected rise in energy prices could help erode the deficit, cutting international funding needs.
by Taina Rosa
The government of Trinidad & Tobago (T&T) is forecasting a deficit of 5.4% of GDP this year, but it is possible that rising oil and gas prices could shrink that. This would mean lower financing needs for the government.
About 90% of T&T’s exports are energy-related, according to JPMorgan. Fluctuations in the price of oil and gas can hurt or help GDP growth.
In 2010, T&T is expected to pump 150,000 barrels per day of oil and gas liquids, according to London-based research firm Business Monitor International. In 2008 it produced 154,000 barrels per day and in 2009 it produced 152,000 barrels per day. By 2019, BMI is forecasting T&T’s output will tumble to 90,000 barrels per day, owing to lack of drilling and wells maturing.
According to information from the US-based Energy Information Administration (EIA),...
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