Energy-producing nations in the Caribbean, including Guyana and Trinidad and Tobago, could see increased revenues as global oil prices rise amid escalating tensions involving the United States and Iran, according to the Energy Chamber of Trinidad and Tobago.
The chamber said on March 16 that the recent surge in oil prices presents “a mixed outlook” for the Caribbean. “Energy producers such as Trinidad and Tobago and Guyana could benefit from stronger hydrocarbon prices, which may improve revenues for oil and gas producers and support margins in petrochemical and LNG markets.”
The price spike followed attacks on vessels and energy infrastructure across the Gulf region after U.S. and Israeli strikes on Iran in late February.
The tensions have disrupted tanker traffic through the Strait of Hormuz, one of the world’s most important oil transit routes.
“Approximately 20% of global oil consumption and a similar share of LNG trade pass through the narrow channel,” the chamber noted.
Energy analysts warn that a prolonged disruption could significantly tighten global supply.
“Some estimates suggest the conflict could ultimately put up to 15 million barrels per day of supply at risk if production and export infrastructure across the Gulf are severely affected,” the Chamber said.
Oil markets have already reacted to the geopolitical risk. The International Energy Agency has warned that the situation could escalate further, presenting opportunities for increased crude sales.
According to the Chamber, “The conflict could trigger the largest oil supply disruption in modern history.”
Guyana now produces more hydrocarbons in the Caribbean region than veteran producer Trinidad and Tobago (TT).
Trinidad’s hydrocarbon production has been in steady decline, down from approximately 719,000 barrels of oil equivalent per day in 2015.
