There’s been a growing conversation in Trinidad and Tobago about the potential of restarting the Petrotrin refinery and sourcing crude oil from Guyana. This idea, largely championed by supporters of the current ruling party, hinges on the belief that a partnership with Guyana could supply the refinery with the oil it needs.
However, there’s a crucial detail that often gets overlooked: the oil produced in Guyana isn’t owned by the Guyanese government or the nation itself. The primary operator in Guyana’s oil fields is ExxonMobil, a multinational corporation that holds the rights to the crude. This means the decision of where the oil is refined lies predominantly with ExxonMobil, not the Guyanese government.
Historically, Trinidad and Tobago’s refinery operations have faced similar challenges. When the Petrotrin refinery was operational, it struggled with underutilization. Even then, multinational oil companies operating in Trinidad, such as BP, did not send their crude to the local refinery. Instead, they preferred to ship it to refineries in places like Texas, where the infrastructure and market dynamics were more favorable.
Moreover, during its operational years, Petrotrin heavily relied on domestic production from offshore and onshore fields. When local production dwindled, the refinery occasionally imported oil, notably from Venezuela. The idea that ExxonMobil would divert its Guyanese crude to Trinidad is, therefore, more of a hopeful notion than a practical reality. ExxonMobil’s primary interest is in refining its oil in the U.S., where it can efficiently serve its market.
In essence, while the idea of reviving Trinidad and Tobago’s refinery with Guyanese oil may seem appealing, the ownership and business interests involved make it an unlikely prospect. The geopolitical and economic realities suggest that Trinidad and Tobago must look beyond this simplistic solution and address the complexities of global oil markets and ownership structures. As such, the path to revitalizing the refinery will require more strategic planning and realistic partnerships that align with current global energy dynamics.
The primary company conducting the current exploration and production of oil in Guyana is ExxonMobil. They lead a consortium that includes Hess Corporation and China National Offshore Oil Corporation (CNOOC). This consortium has been responsible for the major oil discoveries and production activities in Guyana’s offshore Stabroek Block.