SPE 81158
State of the Environment: The Challenges Facing the Energy Industry Sector in
Trinidad and Tobago
Deonarine D.J. Jaggernauth, SPE, Petrotrin
Copyright 2003, Society of Petroleum Engineers Inc.
This paper was prepared for presentation at the SPE Latin American and Caribbean Petroleum
Engineering Conference held in Port-of-Spain, Trinidad, West Indies, 27–30 April 2003.
This paper was selected for presentation by an SPE Program Committee following review of
information contained in an abstract submitted by the author(s). Contents of the paper, as
presented, have not been reviewed by the Society of Petroleum Engineers and are subject to
correction by the author(s). The material, as presented, does not necessarily reflect any
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Abstract
The emergence of the petroleum, petrochemical,
refining, and processing plants, among others
during the past one hundred years in Trinidad has
impacted on the environment. Vegetation has been
removed to accommodate these industries and at the
same time the ecosystem was disturbed. The
wildlife, birds, insects and other reptiles had to
venture into other areas convenient to their lifestyle.
The tributaries, which continue to empty into the
major rivers nearby, have been affected by either
sediment or effluent from the various plants and this
has interfered with the aquatic life.
Indeed the country would like to continue receiving
cheap abundance of gasoline; the country would
like to lead the world in the exportation of
ammonia, urea, methanol, liquefied petroleum gas;
people would like to have a choice of what soaps,
detergents, plastics, or other by-products they use;
but everyone must be mindful of the adverse effect
these and other industries are having on the
environment.
During the last ten years there has a closer view on
the impact industries are having on the
environment. The new industries that are emerging
have more stringent rules and laws to follow now,
than the ones that were constructed during the last
century. Reports such as the Environment Impact
Assessments, and Base Line Studies now play an
integral part in the application to construct a new
plant. Companies now have to apply for Certificate
of Environmental Clearance before any new plant
can be built, new well can be drilled, and existing
plant can be modified, expanded or abandoned.
The many industries, including the energy industry,
that exist in Trinidad have changed the landscape of
the environment both in a positive and a negative
manner. But now there is a culture evolving namely
“we cannot operate like we did in the past.“ Indeed,
profit is the controlling factor for the energy
industry to survive, but not at the expense of the
environment. The paper presented herein looks at
the challenges facing the energy industry as it tries
to survive the stern tests of the environmentalists.
Introduction:
Trinidad is unique because there are several
industries that traverse the landscape of the country.
These industries range from the energy (also
referred to as the petroleum), the agriculture, the
fisheries, the paper, the lumber, the tobacco, the
shipping, among the many that are in the country.
Each has a major impact on the environment in
Trinidad.
The one industry that has the most serious impact is
the energy industry. The report presented herein
looks at the impact the energy (also referred to as
the petroleum) has on the environment. In
understanding the energy industry one has to look at
each component that makes up the energy industry
2 SPE 81158
namely: the petroleum (exploration and production),
the refining, the petrochemicals, and the natural gas.
The energy industry has been in existence for over
one hundred years and contributes significantly to
the economic development of Trinidad and
Tobago1. History has shown us that the discovery
of the pitch lake in 1595 herald the start of the
industry2, although it was not until 1907 that greater
emphasis was place on this industry. The continuing
discovery of natural gas on the East Coast continue
to attract external partners to develop small
industries to utilize the reserves generated3. Thus
the exploration, the production, the refining, the
petrochemicals and the natural gas all form the
components of the energy industry and they cannot
be separated since they account for more than 25 %
GDP (Gross Domestic Product).
But the emergence of the Environmental
Management Act 2000, the Environmental
Management Authority, the Certificate of
Environmental Clearance Rule, the Noise Pollution
Rule among others have caused the energy industry
to re-examine the way they do things. Where before
there were negative impacts on the environment,
now there have to be positive impacts on the
environment.
Overview:
The energy industry can be broken into significant
parts namely the petroleum (which includes
exploration and production), refining,
petrochemicals and natural gas. Each would be
defined in the following section and then they
would be looked at totally on their impact on the
state of the environment in Trinidad and Tobago.
Petroleum:
Petroleum, in its various forms of pitch, crude oil,
and natural gas (chemically classed as
hydrocarbons), helps to make the country one of the
wealthiest countries in the Caribbean. The country
can boast of the largest source of natural asphalt in
the world.
The petroleum industry in Trinidad can be linked to
the discovery of the pitch lake by Sir Walter
Raleigh who used the product to caulk his ships. In
the 1850’s, Merrimac Oil started drilling for
kerosene1. In 1867 the first successful well was drill
in Trinidad signaling the birth of the petroleum
industry. But it was not until 1907 that full
exploration commenced in the east of Trinidad (like
Guayaguayare) and in other areas in the west (like
Point Fortin)2. Since this first commercial venture in
Point Fortin, exploration activity spread to virtually
all areas of the country both onshore and offshore.
The southern part of the country proved to be rich in
oil-bearing rocks and many companies were set up
by British and American firms3.
To date over one hundred years have gone and the
petroleum industry is still a major revenue earner in
the country. More than twelve thousand (12000)
wells have been drilled on land. With these wells
are gathering stations, tank batteries, pipelines, and
compressor stations.
Refinery:
With the birth of the petroleum industry, the
refinery came into being. The first refinery was
built in Brighton in 1910 by Trinidad Lake
Petroleum Company. This was a small facility
designed to supply petrol for local assumption. At
this site an export terminal was constructed the
same year with a storage capacity of six tanks each
capable of holding 64,000 barrels.
A few years later, in 1912, another refinery was
built in Point Fortin by Trinidad Oilfields and oil
products were exported to Britain3.
In 1914, a small topping still was built in Tabaquite
to supply petrol for local consumption. This crude
from the Tabaquite field was light and yielded
petrol and kerosene.
In this small country, another refinery was built at
Pointe a Pierre in 1916 by Trinidad Leaseholds
Limited (TLL) with a capacity initially of 3500
barrels oil per day. Lines were constructed from
Barrackpore and Forest Reserve fields to transport
crude oil to the refinery at Pointe a Pierre.
SPE 81158
Over the years a number of expansions were made
to both the Point Fortin and Pointe a Pierre
refineries. After the Second World War, in the
1950’s the capacity of the Pointe a Pierre refinery
(operated by Texaco) and Point Fortin refinery
(operated by Shell) increased to 365,000 bopd and
100,000 bopd respectively. These companies made
use of their deep water berthing facilities. Increase
oil production forced these expansions. The
demands by the export market drove further
expansion of the Pointe a Pierre refinery. With the
merger of companies like Trintoc, Texaco,
Trintopec to form Petrotrin( Figure 1) led to the
closure of the Point Fortin refinery and the upgrade
and expansion of the Pointe a Pierre refinery. To
date the Pointe a Pierre refinery sits on 2000 acres
of land and is one of the largest industries in
Trinidad3.
Crude oils vary in composition and are of very little
use unless refined. The refining process segregates
the crude oil into usable products and prepares them
for marketing. The essential function of an oil
refinery is to manufacture, as economically as
possible, the necessary quantities of liquefied
petroleum gas (LPG), aviation gasoline, gasoline,
kerosene, gas oil, lubricating oil, fuel oil, sulphur,
wax, and asphaltic bitumen among other products
from the crude oil. Some of the main steps in
refining are gas separation, distillation, cracking,
hydro treating, and extraction.
Petrochemicals:
The manufacture of oil-based petrochemicals has
been a well-established feature of the Pointe a
Pierre refinery after the Second World War.
Declining oil production has caused the closure of
the manufacture of oil-based petrochemicals.
The manufacture of gas-based petrochemicals
begun in 1959 and has been expanding since then.
The first company, which started, was Federation
Chemicals Limited, which began to manufacture
and supply a wide range of petrochemical
fertilizers. Other products from this plant were
ammonia, urea, sulphuric acid, and ammonia
sulphate. In 1979 the urea, sulphuric acid and
ammonium sulphate plants were closed, and
3
FedChem was bought by Norsk Hydro and the plant
now called Hydro Agri. This plant utilized gas as its
feedstock.
Between 1981 and present, several plants have been
developed on the Point Lisas Industrial Estate. With
the establishment of the petrochemical estate at
Point Lisas and the construction of world scale
ammonia, methanol and urea plants, Trinidad has
now become a major petrochemical player. Phoenix
Park Gas Processing Plant can be found on the
estate. It removes natural gas liquids (such as
propane and butane) from the gas stream and
converts these liquids into products for export into
international markets. For example, the first
ammonia plant ( as mentioned previously) was built
in 1959 at the Savonetta facility( now called Hydro
Agri Trinidad) , and the technology used was
M.W.Kellogg process. To date there are eight
ammonia plants on the Point Lisas estate, with PCS
Nitrogen housing four (4) plants, Hydro Agri
housing three (3) plants and Farmland MissChem
housing the last one. Of the eight plants, two are the
world’s largest producers of ammonia using the
Kellogg Advanced Ammonia Process.
Natural Gas:
The increasing global demand for natural gas has
provided an ideal opportunity for this country to
develop its natural gas industry. The discovery of
the natural gas has attracted several gas-based
projects from external companies. As mentioned
previously, all the petrochemical companies at Point
Lisas use natural gas as a feed stock or fuel for their
plants. Following a decision to develop the natural
gas industry in 1975, the proven reserves have rose
significantly over the past few years. Recently, it
has been observed that every gas well drilled in the
East Coast (Figure 2) adds one trillion cubic feet of
reserves (1 tcf) to the gas industry.
Some of the plants, in Trinidad, that utilizes natural
gas are : TTEC, PCS (Nitrogen Trinidad), Hydro
Agri, Tringen, TTMC, Titan, ISPAT, PPGPL, and
Petrotrin Refinery.
Located near where the old Point Fortin refinery
was, is the Atlantic Liquified Natural Gas (LNG)
plant, which has changed the landscape of Point
4 SPE 81158
Fortin. Although two plants are in operation, there
is construction on two other plants on the site. The
site occupies 120 acres of reclaimed land. These
plants are being built to capture the market for the
abundance of natural gas that exists in Trinidad off
the east coast and the north coast. The liquefied
natural gas is shipped to United States of America,
Puerto Rico and Spain.
Liquefied natural gas (LNG) is composed primarily
of methane, which has been chilled to –161 degrees
Celsius. One cubic foot of LNG would vaporize
into 600 cubic feet of natural gas. Its use is as
follow:
~ as fuel for steam raising, metal working
~ as fuel for process heat for cement production
~ as fuel for dry agricultural produce
~ as fuel for transportation
~ as fuel to power boilers that create heat for homes
and offices in temperate countries
The site also has a port area, which consists of a
LNG jetty, an approach channel and a turning basin.
The jetty handles LNG carriers ranging from 70,000
to 135,000 cubic metres (or 2.5 million to 4.8
million cubic feet) in size. It is built according to
international standards for design and construction
and is capable of operating on a 24-hour basis.
Legislation:
The energy industry in Trinidad and Tobago is
principally governed by the Petroleum Act (1969),
the Petroleum Regulations (1970), and the
Petroleum Taxes Act (1974).
The Petroleum Act establishes a framework for the
grant of licences and contracts for the conduct of
petroleum operations, which include activity on
land, and in marine areas. Under the act the
Ministry of Energy and Energy Industries is
responsible for determining the areas to be made for
petroleum operations. Thus persons or companies
wishing to engage in petroleum exploration and
production operations must apply to the Minister of
Energy and Energy Industries1 who may issue the
following types of licences or contracts namely:
a) An Exploration (Public Petroleum
Rights) Licence, which grants the
licensee the non-exclusive right to carry
out, the petroleum operations provided
by the licence.
b) An Exploration and Production (Public
Petroleum Rights) Licence which grants
the licensee the exclusive right to
explore for, produce and dispose of
petroleum in accordance with the terms
of the licence.
c) An Exploration and Production (Private
Petroleum Rights) Licence.
d) A Production Sharing Contract for
conduct of petroleum operations relating
to the exploration, production, and
disposition of petroleum within a
prescribed contract area.
On the basis of the Petroleum Act and its
subsidiary regulations, The Ministry of Energy and
Energy Industries regulates and give broad direction
and guidance to the petroleum industry.
Further in the petroleum operations, companies and
their personnel must take all necessary precautions
to ensure that the water resources are not damaged
by the escape of petroleum. This is clearly defined
by the Petroleum Regulations.
The Mines, Borings and Quarries Act specifically
identify that all precautions must be taken when
drilling a well so that no gas or oil may escape into
the watercourse.
Energy Industry and the Environment:
The demand for energy on a global scale has risen
astronomically over the past one hundred years.
Consumption levels are expected to reach over 330
million barrels per day (bopd) of crude oil. Over 75
% of the current demand is supplied through the use
of non- renewable fossil fuel resources. The major
factors attributed to the increase in energy
consumption have been the rapid rates of industrial
and economic growth, fueled by new and innovative
technologies, the ease of availability of new, energy
dependant technologies on the consumer market, an
increase in the life expectancy of the human
population and their growth rates.
The abundant supply of energy has come with a
price, not in terms of money but the environment.
SPE 81158
Environmental problems span a continuously
growing range of pollutants, hazards and ecosystem
degradations over local, regional and global areas.
Many of these problems arise from observable,
chronic effects on human and environmental health,
while others stem from perceivable risks associated
with accidental release of hazardous materials.
Ecological Habitat Encountered:
Many areas have been affected by the
industrialization of the energy sector. On the
outskirts of the plants and installations there are a
variety of ecological habitats, which have been
affected initially and even when the plants are in
operation.
These ecological habitats include :
~ agricultural fields ( like sugar cane)
~ rice fields
~ forested areas
~ freshwater ponds/dams
~ rivers/streams
~ mangrove forests
~ salt marshes
~ freshwater swamps
~ roadways
~ rocky intertidal shore
~ sandy beaches
~ gravel beaches
a) Agricultural fields:
Many of the acreage in the south of Trinidad
are sugar cane fields. Although it is one
plant specie it sustains the sugar industry,
which has been in existence since the days
of slavery and indentureship. Thus the
removal of sugar lands to accommodate
energy industries like Point Lisas Industrial
Estate, Incogen Plant and exploration wells
has caused a decrease in the acreage.
b) Rice Fields :
These fields are highly productive wetland
ecosystem, which is important to migrating
waterfowl and a diverse resident fauna.
They are based on the dominant rice plant
together with various species of freshwater
plants, which trap sediments and stabilize
the fields from erosion. These fields are
regarded as high priority because of their
sensitivity to the effluents leaving the
5
various energy plants and the petroleum
wells.
c) Forested Areas:
The tropical forest is a diverse and complex
system consisting mainly of evergreen
woody vegetation, forming a thick canopy.
It contains the largest number of species, of
animals, of any known ecosystem. The
forests are fragile, and once damaged could
never be recovered, or recovery is too slow.
d) Freshwater ponds/Dams:
They have high biodiversity of aquatic
plants and animals found in four distinct
habitats within the ecosystem, existing
through a symbiotic relationship with each
other. The four habitats are the water
surface, open-water habitat, pond
floor/sediment habitat and the shore habitat.
If one of these systems is disturbed then
there is a change to the whole ecosystem.
Thus these areas are very sensitive to the
effluents leaving the energy plants.
e) River/Stream:
A river is an aquatic environment in which
the dominant physical condition is water
current, which is constant and
unidirectional. Rivers and streams are rich
and diverse with their plant and animal
communities.
f) Mangrove forests:
They are wetland ecosystem and include the
entire complex of plant and animal
communities established on the
superstructure created by mangrove trees.
Some trees have prop roots, which are
exposed to the air and provide a large
surface area for other organisms to thrive
upon. These prop roots and trapped
sediments form the framework for the rest of
the ecosystem, which includes a variety of
salt-tolerant species. Mangrove ecosystems
typically occur on relatively flat, sheltered
land between the high and low tide zones in
regions with high year-round precipitation.
g) Salt Marshes:
They are highly productive ecosystems,
which are important to offshore fisheries,
migrating waterfowl and a diverse resident
fauna. They are based upon various species
of salt marsh grasses, which trap sediments
6 SPE 81158
and stabilize the marsh from erosion.
Marshes usually range from areas that are
completely exposed to areas that are forested
and/or shoreline areas.
h) Freshwater Swamps:
Freshwater swamps are highly productive
ecosystems that provide habitats for a wide
mosaic of plant and animal species. Swamps
generally consist of ridges and depressions
(lagoons). The ridges are colonized with
stands of mixed swamp wood and the
lagoons with herbaceous vegetation, which
trap sediments and stabilize the marsh from
erosion. Freshwater swamps are particularly
susceptible to physical disturbance.
i) Roadways:
The many roadways in the industrial areas
are devoid of plant and animal species.
j) Rocky Intertidal Shore:
The rocky intertidal shore is characterized
by solid surfaces for colonization by a
variety of organisms. The many different
rock configurations of the rocky intertidal
shore result in numerous habitats namely
exposed rock faces, sheltered overhangs,
crevices, deep or shallow pools, soft
sediments trapped in fissures or under
boulders. The resulting plant and animal
communities are rich.
k) Sandy Beaches:
Sandy beaches and tidal flats account for a
substantial portion of the marine intertidal
habitat and can be classified into secondary
habitats as exposed sandy beaches, sheltered
sandy beaches and tidal flats.
Exposed sandy beaches contain well-sorted
fine to very coarse sand on a steep beach
slope. These beaches contain simple
communities and are commonly a shorebird
resting and feeding habitat.
Sheltered sandy beaches are composed of
poorly sorted fine sand or mud near the low-
tide zone and medium to coarse sand on the
upper beach. This habitat supports a
moderately rich biological community on a
more stable beach.
Tidal flats are broad low-tide zone, backed
by sandy beaches, salt marshes or mangrove
forests. They contain biologically rich
communities and are commonly shorebird-
feeding areas.
l) Gravel Beaches:
Gravel beaches include a wide variety of
habitats, and the biological community is
composed of a few species.
Variation To The Ecosystem:
Drilling and production, which form major part of
the petroleum industry is also referred to as the
upstream section of that industry. Refining and the
petrochemicals are often referred to as the
downstream industries. Since drilling and
production for both crude oil and natural gas form
the basis of the energy industry they would be
discussed further in this section.
As mentioned there are about 12000 wells drilled on
land traversing the southern part of the country.
Prior to these wells being drilled there were green
vegetation and trees in the areas. But the need for
achieving cheap form of energy saw the need to
drill for crude oil. The geology of the country
showed signs of encouragement and from 1907 to
present acres of vegetation has been removed to
accommodate drilling rigs and well installations. If
each installation used about 1 ½ acres of cleared
area, then the 12000 wells would have used 18000
acres. In removing the vegetation some trees would
have also been removed, insects would have been
removed, animals would have been removed and
watercourses would have been disturbed. The
ecology would have been interfered with in order to
pursue the development of the energy industry.
The preparation of drilling sites can cause local
impact on the environment, including erosion, soil
compaction, and sterilization. The development of a
drilling site involves construction of roads to the
sites, and a level surface at the sites.
The heavy equipment used to prepare the sites can
cause compaction of the soil thus preventing water
and other nutrients from flowing through the pore
system. This retards root development in plants and
limits site restoration after abandonment.
Depending on the site it would take decades before
any sign of vegetation can be observed. Drilling
sites are often sprayed with weedicides to prevent
SPE 81158
growth from around the well and even along the
roadways. Treated areas would remain devoid of
vegetation for many years.
Drilling a well entails:
~ the clearing of the land,
~ construction of roads,
~ movement of heavy equipment
~ resurfacing areas to accommodate the
heavy equipment,
~ generating electricity for the rig via
generators, operating the rig 24 hours per
day,
~ moving equipment regularly,
~ dumping contaminated mud (drilling
fluids) to pits,
The process of drilling oil and gas wells generates a
variety of different types of wastes, which have
found themselves in the habitats mentioned before.
Drilling a well entails the rotation of a drill bit into
the subsurface rocks until the desired depth is
achieved. The rig and its components are designed
to control how the bit pushes into the rock. Drilling
fluid also called drilling mud is used to control the
reservoir pressure, cool the bit, form a wall cake
along the formation, keep cuttings in suspension,
and brings cutting to surface.
The major ways in which the drilling can impact on
the environment are from drill cuttings (which are
rock fragments which come to the surface), and
contaminated drilling fluids. Drilling fluids are
mostly water-based and additives are used in the
fluid to ensure it can control any abnormal pressures
that may be encountered while drilling. Such
additives5 are used to control viscosity, density, lost
circulation, pH, formation damage among others.
a) Viscosity control – one of the most
important functions of the drilling fluid
is to bring the cuttings to surface. Since
the cuttings are heavier than the water-
based fluid, viscosifiers like hydratable
clay, must be added to assist in
increasing the viscosity. These clays
can contain elements like aluminum,
barium, calcium, copper, iron,
magnesium, and silicon to name a few.
b) Density control – since another function
of the drilling fluid is to control any
abnormal pressures while drilling, barite
( barium sulphate) is added to the fluid
7
to increase its density. Other materials
which can be added are calcium
carbonate, iron carbonate, ilmenite
(FeO-TiO2 ), and hematite ( Fe2O3).
c) Lost circulation control – fluid is lost
to the permeable formation due to
pressure variation. To minimize this
loss, small particles are added to assist in
preventing further loss. This usually
works together with viscosity control
additives.
d) pH control – a high value is needed (
between 9.5 to 10.5) in drilling
operations . This will also prevent
corrosion to the drilling equipment.
e) Formation damage control – many
formations contain active clays that
swell upon contact with water. These
swelling can plug the pores in the
reservoir thus lowering its permeability.
To prevent same from occurring, salts
are added to prevent the water molecules
from exchanging with the cations in the
clays. Sodium and potassium chlorides
are commonly used.
To dispose of the drilling cuttings from onshore
wells, the cuttings and any contaminated drilling
fluids are put into a reserved pit. These pits are
lined so that there is no leaching into the ground so
as to affect the ground water table. After the drilling
rigs moves off location the reserve pits are still
there. Although not in use for drilling operations,
they have been found convenient for the production
operations to dump their oily sludges. As time
passed by these pits became chronic polluted sites,
which are now being remediated.
Just like drilling, production of oil and gas generate
a substantial amount of waste. During the
production phase both water and formation solids
are produced with the crude oil and natural gas. The
produced materials are passed through separation
equipment and separated out. The largest
volume of waste is the produced water. From
mature fields, like the ones in Trinidad, the volume
can be substantial greater than the volume of oil
being produced. The produced water can also
contain dissolved solids like sodium chloride, with
calcium, magnesium, and potassium in high
8 SPE 81158
concentrations. Other metals like cadmium,
chromium, copper, lead, nickel, silver and zinc
occur in very small amounts. But their
concentrations can be large enough to impact on the
environment.
A wide variety of air pollutants are generated and
emitted during the processes of finding crude oil
and natural gas. These air pollutants include
primary oxides of nitrogen, volatile organic
compounds, oxides of sulphur, carbon monoxide
and particulates. The largest source of this air
pollution is the operation of the internal combustion
engines used to power drilling and production
activities such as drilling rigs, compressors and
pumps. These engines use either diesel or natural
gas as their fuel source.
Many of the wastes associated with drilling and
production operations have the potential to impact
on the environment. The potential impacts depend
primarily on the material, its concentration after
release and the biotic community that is exposed.
The most common measure of the potential
environment impact of the material is toxicity.
Toxicity occurs when a material causes a
deleterious effect on an organism, population or
community. These effects can range from
temporary disorientation to lethality. The toxicity of
a substance is the measure of how it impairs the life
and health of living organisms following the
exposure to the substance. In most cases the effects
of the substance on human health and life is of
primary importance. Two types of toxicity
measurements are dose and concentration.
The release of crude oil of natural gas into the
environment can affect marine animals, the
ecosystems, human health, and plant growth.
Marine animals – the actual impact is very
complex. Behavioural changes from exposure to the
hydrocarbons are primarily those involving motility,
while in higher organisms, changes can affect
avoidance, burrowing, feeding, and reproductive
activities.
Ecosystems – there has been no long-term effects
because after the hydrocarbon source has been
removed, full recovery usually takes place.
Human Health – the impact of hydrocarbons on
human depends on whether exposure was from
ingestion, inhalation or dermal contact, and whether
the exposure was acute or chronic.
Plant growth – hydrocarbons can impact on plant
growth when released on land. Levels of crude oil
and grease above a few percent in soils have shown
degradation of plant growth.
Both refining and the petrochemical plants depend
on the drilling and production of crude oil and
natural gas. The impacts by these plants also would
have the same effect like the former. The discharge
of their effluent, which consists mostly of water,
would affect the river streams and the oceans that
they eventually empty into. The air emissions would
be the same as that mentioned previously.
Initiatives Taken To Preserve The Environment:
The Government of Trinidad and Tobago, through
The Ministry of Energy and Energy Industries,
continues to promote as its basic policy the
sustainable development of the energy sector, which
includes exploration, production, refining, and
marketing of petroleum and its by-products. These
objectives are achieved through regulations aimed
at ensuring tat operations are conducted safely, with
concerns for human health and minimal impact on
the environment. Some of the regulations are:
~ Petroleum Act (1969)
~ Oil Pollution of Territorial Water Act (1951)
~ Litter Act (1973)
~ Merchant Shipping Act, 1995:Part VI “
Prevention of Pollution”
~ The Environmental Management Act (2000)
~ Draft Merchant Shipping and Marine Security
Bill
As the Government authority responsible for the
prevention, abatement, and combating of oil
pollution in all areas the Ministry of Energy and
Energy Industries has assumed the role of initiator
and coordinator of spill prevention and emergency
response plan in Trinidad and Tobago. Thus to safe
guard the energy industry the National Oil Spill
Contingency Plan (NOSCP) was first drafted in
1974. It is intended to delineate responsibilities for
the operational response to oil spill incidents both
SPE 81158
major and minor. This will assist in minimizing
damages to both land and marine environments. The
main objective of the plan is to ensure timely and
effective response to oil spills or threats of oil spills.
This is accomplished by:
~ Establishing a viable operational
organization with representation from all
concerned agencies.
~ Coordinating the roles of the different
agencies to ensure that effective control is
exercised to protect the environment against
oil spills.
~ Identifying activities/processes that are at
high risk for the release of hydrocarbons
into the environment.
~ Identifying sensitive coastal and other
areas for protection and clean-up.
~ Ensuring that participating agencies within
the energy sector maintain stockpiles of
equipment in readiness for response to oil
spills.
~ Providing training of management and
operational personnel.
Recognizing that the marine environment and the
living organisms it supports are vital to the peoples
of this twin island state, The Government has taken
special interest in ensuring that the country’s
territorial waters are managed so that their quality
and the resources they contain within them are not
impaired. If one were to look at where the energy
industries are located, they are near the Gulf of
Paria on the west coast, and the Atlantic Ocean on
the east coast. Then there are watercourses
emptying into these two major sea bodies. These
watercourses traverse the major producing land
fields.
The Certificate of Environment Clearance Rule,
which is now law, requires companies to conduct
Environment Impact Assessments. This has become
necessary to safe guard the wildlife and forestation
that surrounds us.
Before the emergence of the Environmental
Management Authority, the Ministry of Energy and
Energy Industries through its Inspectorate Division
monitored the environmental quality in the energy
sector which included the following:
9
~ all land and marine operations in exploration and
production of oil and gas.
~ the refinery at Pointe a Pierre
~ all the petrochemicals plants at Point Lisas.
~ all gas stations
~ any other energy related facilities.
The Inspectors are also involved in the following:
~ investigation of all oil spills and chemical
discharge incidents.
~ regular inspections of petroleum installations and
surrounding areas such as drilling and workover
rigs, production platforms, gathering stations, rivers
and coastal areas including beaches.
Companies in the energy sector have established a
Health, Safety and Environment Section to ensure
that all the legislation is adhere. At the same time
each company has developed an Environmental
Policy, which is structured along the framework of
the National Environmental Policy.
In the midst of the operation of the energy sector,
there exists a Wild Fowl Trust near the Point a
Pierre Refinery. This Trust encompasses twenty-six
hectares and two lakes within a large oil refinery
indicating that industry and conservation can work
side by side. The Trust is actively involved in
research and captive breeding of endangered species
of waterfowl and other indigenous birds for the
release and reintroduction into the natural wildlife
areas.
The Economy and The Energy Industry:
Crude oil production begun in 1908, and reached its
peak in 1978, when successful discoveries were
made on the East Coast. As one sector declined over
that past twenty years, another sector increased
namely the natural gas. To understand why the
country enjoyed a healthy economy in 1978, was
because the oil price rose to over USD $ 25 per
barrel, and continued to rise in the early 1980’s
before there was a turn of events which saw oil
price falling to below USD $ 15 per barrel. From
the mid-1980’s the energy sector contribution to the
country’s economy fell to 21 %. This resulted from
the fall in international crude oil prices. In view of
this and not being able to discover new crude oil
reserves, the shift in the energy industry resulted in
more emphasis being placed on natural gas as the
fuel of growth in the economy.
10 SPE 81158

The fiscal regime in Trinidad and Tobago can best develop petrochemicals companies in the
be described as an enhanced two-tier system energy sector.
consisting of production based Royalty, Production 10) The energy industry has changed the
levy and Supplemental Petroleum Tax (SPT) landscape of the environment in Trinidad
supported by a profit based corporation tax which and Tobago.
includes Petroleum Profits Tax (PPT) and an
Unemployment Tax. Incentives and allowances are
structured to encourage investment. Recommendations:
The Minister of Finance through the Board of
Inland of Revenue administers the Petroleum Taxes 1) Energy companies must adhere to the strict
Act. The Act establishes the system of taxation for environmental laws governing their
companies engaged in petroleum operations. operations.
2) Companies have to apply for Certificate of
The main statues that govern the operations and Clearance before any drilling of a well,
taxation of the petroleum industry are: expansion, modification, or abandonment of
~ The Petroleum Act their plant can take place.
~ The Petroleum Production Levy and Subsidy Act 3) Companies must ensure that their workers
~ The Petroleum Taxes Act are familiar with their health, safety and
~ Income Tax (In Aid of Industry) Act environmental policies.
~ The Income Tax Act 4) All employees should have a basic training
~ The Unemployment Levy Act in health, safety and environment.
5) Each company should adopt as their
Conclusions : watchwords “ zero accidents equal to zero
tolerance”.
1) The energy industry, which comprises 6) Each company should adopt the new
petroleum (exploration and production), “Health, Safety and Environment Culture
refining, petrochemicals and natural gas, “as the returns on their investment.
plays a significant role in the economy of 7) Each company should educate the
Trinidad and Tobago. communities where their installation are
2) The energy industry has been in existence near, and should set up an action group
for more than 100 years. emphasizing “ Community Awareness in
3) It contributes to more than 25% GDP. Response to Emergencies –(CARE)”.
4) It can impact on human health, animals, 8) Profits should not be made at the expense of
plant growth and marine life if released into the environment.
the environment.
5) Agricultural lands (like sugar cane), rice
lands, mangrove areas, forest, beaches, Conversion Factors:
rivers, roadways are the existing habitats
that surrounds these plants. Multiply By To Obtain
6) The fact that the Wild life Trust has been in Acres 0.4047 Hectares
Barrel 0.1589 Cubic Metre
existence near the Pointe a Pierre refinery is Feet 0.3048 Metres
evidence that both can co-exist. Cubic Feet 0.0283 Cubic Metres
7) The release of toxic gases into the Miles 1.6090 kilometres
atmosphere can have an adverse effect on
the ozone layer.
8) Producing cheap form of energy cannot be Abbreviations:
done at the expense of the environment.
9) The abundance of natural gas reserves has TTEC Trinidad and Tobago Electricity
attracted several international companies to Commission
PPGPL Phoenix Park Gas Processors Limited
SPE 81158 11

ALNG Atlantic liquefied Natural Gas Company Figure 1- Evolution of Petrotrin

of Trinidad and Tobago
Bopd barrels of oil per day UBOT ( 1912-1956) ,TTL (1911-1956
Tcf trillion cubic feet ⇓
TTMC Trinidad and Tobago Methanol Company SHELL (1956-1974, TEXACO (1956-1985
⇓
TRINTOC(1974-1985
References: ⇓
TRINTOC(1985-1993
1) Ministry of Energy and Energy Industries, “ ⇓
An Information Guide on the Energy PETROTRIN (1993-
Industry of Trinidad and Tobago”, 1998
2) Higgins, George : “ A History of Oil”,
1996.
3) KPA and Associates,: “ The Petroleum
Encyclopedia of Trinidad and Tobago”,
1993
4) Wilson, Mary Jane and Frederick, Jesse : “
Environmental Engineering For Exploration
and Production Activities”, SPE Monograph
Series, 1999
5) Reis, John : “ Environmental Control In
Petroleum Engineering”, Gulf Publishing
Company,1996
12 SPE 81158

Figure 2

MAP SHOWING OIL FIELD AND GAS FIELD

BLOCK 29 Caribbean Sea

O IL FIE LDS

G AS FIE LDS STATUTE MILES

0 2 4 6 8 10

0 10 20

KILOMETERS
NO RTHE RN L IMIT O F N .B .C. B . H . P.
BHP / E . L . F.
TA L I S M A N 2 (c)

TRINIDAD 2 (ab )

BLOCK S 1
ARENA
MAHAIC A

A
PET ROT RIN X ILL
Z AN
Y BLOCK 1 AN
M
BELP ETCO BLOCKS
Z W , X , Y, & Z TA B A Q U I T E

TE
W B A L ATA IS
B A L ATA CENTRAL LM
NM - PA
5 PET ROT RIN WE ST
E AS T
T
B R I G H TO N S TA
EA EO
AL
G
MORA
B A R RA C K P O RE
E AST
BEACH

TRINMAR
S. E. C. C.
PET ROT RIN
a PETROTRIN
b O PE N
TR I N TO M A R
PEL ICAN
( S 11 a ) OPEN PETROTRIN 80%
SOUTH MARI NE ( S 11 b ) N.G .C 2 0%
CO LUMBUS CH ANNEL
UPPER REVERS E
AM OCO - 100 % 'L' BLOCK
ENRON 95% OPEN
PE TRO TR IN 4 %
N. G. C. 1%

449-PETLJVT2.CDR-96/05