The Trinidad and Tobago Energy Chamber has called for a boost in exploration drilling to sustain the country’s oil and gas industry.
In a recent press release, the Chamber emphasized that while seismic surveys and geological studies provide strong indicators of hydrocarbon potential, actual drilling is necessary to confirm the presence of viable reservoirs.
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“Many exploration wells drilled around the world are unsuccessful and do not find commercial reserves of oil or gas,” the Chamber stated. To maintain production levels, countries and companies must identify and drill exploration targets to discover new reserves.
The Chamber highlighted that even when exploration wells yield positive results, years or even decades can pass before commercial production begins. Furthermore, initial success does not always guarantee long-term viability, as appraisal wells may yield less favorable outcomes.
Calling for a continuous exploration drilling program, the Chamber said this is needed to boost gas production within Trinidad and Tobago’s economic zone. It urged the Ministry of Energy and Energy Industries to allocate unlicensed acreage through bid rounds or direct negotiations and to provide geological data to attract companies to explore potential sites.
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“Having the right fiscal, regulatory, and commercial environment also encourages companies to consider investing in drilling exploration wells,” the release noted. It added that the existence of a downstream gas market with unmet demand strengthens Trinidad and Tobago’s appeal as an exploration destination.
The number of exploration wells drilled is “a key metric to determine the long-term viability” of the country’s oil and gas sector, the release ended.
Trinidad’s hydrocarbon production is on a steady decline, down from approximately 719,000 barrels per day in 2015. Trinidad is hoping that cross-border cooperation with Venezuela will bring some gas projects to fruition to help buoy its declining output, including the highly anticipated Dragon project.
