Introduction to Oil and Gas in

Trinidad and Tobago

Dr. David Alexander

Monday 2nd February, 2015

 History of Trinidad & Tobago’s Energy
Sector
• 1866 - First successful onshore oil
well
• 1904 - Mines department formed
, now MOEEI
• 1908 - Commercial onshore oil
production
• 1910 - First export of oil from
Brighton
• 1968 - Commercial oil discovered
off Mayaro
• 1972 – National Petroleum (NP)
formed

2
 History of Trinidad & Tobago’s
Energy Sector
• 1975 - National Gas Company
(NGC)
• 1978 - Highest oil production
230,000 bopd
• 1980’s - Natural Gas based
Petrochemical Plants established
at Pt Lisas
• 1990’s - Significant gas discovered
east coast marine area
• 1999 - First cargo LNG exported
from Pt. Fortin

3
 Importance of the Petroleum Sector

• Trinidad and Tobago’s

Population - 1. 3 million

• Petroleum Jobs - <5% of

direct employment

• Energy sector provides

approximately 75% of
foreign currency

4
 Trinidad & Tobago’s Production Profile
T&T Oil & Gas Production Profile:- 1970 to 2008

4500 250

4000
200
3500
Gas Rate (mmscfd)

Oil Rate (mbopd)

3000
150
2500
2000
100
1500
ALNG
1000 50
500
0 0
1970 1975 1980 1985 1990 1995 2000 2005
Year

Gas Rate (mmscfd) 5

Petroleum Programmes at UTT
 Petroleum Engineering
What is petroleum engineering?

• Petroleum engineering is a field of engineering

concerned with the activities related to the
production of hydrocarbons, which can be either
crude oil or natural gas.

7
 Vision
• Vision of the UTT is to be an entrepreneurial university
that:
– produces graduates with broad integrated skills
– maximises the benefit of new and emerging
technologies; and
– undertakes R&D activities aimed to keep Trinidad
and Tobago in the vanguard of niche technologies of
key importance to the nation
 Mission

• To be an entrepreneurial university designed

– discover and develop entrepreneurs
– commercialise research and development
– spawn companies for wealth generation and sustainable
job creation

towards the equitable enhancement of the quality of

life of all individuals, families and communities of
the Republic of Trinidad and Tobago and the
Caribbean”
 The UTT Brand

• World class standards – Education with a global

vision
• Industry-ready graduates

• Seamless articulation

• Entrepreneurship inside

• Partnering with industry

 Accreditation

Energy Institute of the UK

B.Sc. Petroleum Engineering 2004 - 2007

M.Sc. Petroleum Engineering 2007 - 2015
M.Sc. Petroleum Technology 2006 – 2007
B.A.Sc. Petroleum Engineering 2011- 2015
M.Eng. Petroleum Engineering 2010 – 2015
M.Sc. Reservoir Engineering 2011- 2015

11
 Doctor of Philosophy
(Ph.D.)

Programme Master of Philosophy

Levels (M.Phil.)

Master of Science (M.Sc.)

Master of Engineering (M.Eng.)

Bachelor of Applied Science

(B.A.Sc.)

National Engineering Technician’s Diploma

(N.E.T.D.)
 National Engineering Technician’s
Diploma (NETD)
Entry Requirements:

• Passes in at least 5 subjects at CXC General

Proficiency (Grades I, II or III) inclusive of
Mathematics, English Language, Chemistry and
Physics

Duration of Study:
2-Years Full Time / 4-Years Part-Time
 B.A.Sc. Programme
Entry Requirements
Pass in CAPE I and II and/or Cambridge ‘A’ level subjects:
Mathematics and either Chemistry or Physics
and
Pass in CAPE Communication Studies and Caribbean Studies and/or
Cambridge General Paper
and
O-Level/CSEC Physics and Chemistry
OR
Diploma Petroleum Engineering

Duration of Study: 3 Years Full Time / 4 1/3 Years Part-Time

14
 B.A.Sc. Programme Credits
Common to all
Year 1 36
B.A.Sc. Disciplines

Petroleum Engineering 75%

Research & Design 8%
Year 2 36
Humanities & Social Science 17%
Industry outplacement – Term 3

Petroleum Engineering 70%

Research & Design 15%
Year 3 36
Humanities & Social Science 15%
Industry outplacement – Term 3

B.A.Sc. Graduate 108 credits

 M.Eng. Programme

Entry Requirements

UTT B.A.Sc. Programme

Duration of Study:
1 Year Full Time / 1 1/3Years Part-Time

16
 M.Eng. Programme

Petroleum Engineering 33%

36
Year 4 Research & Design 50% credits
Humanities & Social Science 17%

M. Eng. Graduate 144 credits

 B.A.Sc./M.Eng. Petroleum Engineering Pre-Requisites
MATH110B MATH210B MATH220B DRLG410B
MATH110B Engineering Engineering Engineering Drilling
Engineering Mathematics 11 Mathematics 111 Mathematics IV DRLG310B Engineering 11
Mathematics 1 Drilling PEDP320B
Engineering Petroleum
Design
Project
ENSD110B ENVM310B GSTS310B
Engineering Environmental Intro.
Systems Management PROD310B Geostatistics
PSWK110B Production
Dynamics
Problem Engineering
SCMT110B PENG210B Into. PROD410B
Solving
Scence. of Petroleum Production
Workshop
Material Engineering Engineering
IMOR410B
ELEC110B RESV310B Improved Oil
Introduction Reservoir Recovery
to Electrical Engineering
Systems GEOS210B SDRK220B
PROG110B Intro. Geoscience Sedimentary
Programming RESM410B PERP420B
Rocks
1 GEOL320B Reservoir PGE Project
Pet. Geology Simulation 1
THRM110B
Thermodynamics PBMS220B
1 Phase Behaviour
VEGR110B PETR220B
Visualization WLOG210B Basic Petro-physics 1 NGAS320B
Well Logging Natural Gas
Engineering
FFPM220B
COMM110B PDWK110B Fluid Flow in
Communication Professional Porous Media
RMAL410B
Skills Development Research
WTST320B
Workshop LBWD210B Methods
Well Testing
Laboratory
LWDP110B Workshop
Laboratory
Workshop

PJMT220B QHSE310B FNMT320B BPRE210B PERA420B CTLN410B

ENGS110B LIFE110B
Project Quality Financial Business Petroleum Contract Law
Eng. Seminars Life Sciences
Management Assurance Management Practices Economics &
Negotiation

18
Year 1 (36) Year 2 (36) Year 3 (36) Year 4 (36)
MSc Petroleum Engineering
Student Qualifications

BSc Graduates
Engineering Disciplines
Geoscience Disciplines
Physics and Mathematics
Chemistry
 MSc Degree in Petroleum
Engineering Course Outline
 1st Term – 22 Credits
Industry Overview for Fundamentals of
Drilling, Completions
Petroleum Petroleum
and Workovers
Engineering Geoscience
(2 Credits) (2 Credits)
(4 Credits)
Basic Well Shaly Sand
Logging for Drilling Practices
Masters
Petrophysics
(2 Credits)
(2 Credits) (3 Credits)

Production Basic Introduction to

Operations for Reservoir Natural Gas
Petroleum
Engineering Engineering Engineering
(2 Credits) (3 Credits) (2 Credits)
 2nd Term – 27 Credits
Introduction to Advanced Well Applied Pressure
Research for Petroleum
Masters
Logging Transient Analysis
(3 Credits) (5 Credits) (2 Credits)
Natural Gas
Gas Reservoir Thermal Heavy
Engineering for
Management Oil Recovery
Masters
(2 Credits) (5 Credits)
(3 Credits)

Applied Petroleum Risk

Reservoir
Reservoir and Decision
Characterization
Simulation Analysis
(3 Credits)
(2 Credits) (2 Credits)
 3rd Term –16 Credits

Project Thesis Overview

Field Development Study
Reservoir Evaluation Study
Well Performance Study
Petroleum Related Study
 Project Thesis Review
Year Corporate Support
EOG Repsol bpTT BGTT Petrotrin UTT
2011 2 2 2
2012 3 2 6 1
2013 3 2 2 1 3
 Master of Science (M.Sc.)
Reservoir Engineering
Entry Requirements:
• Bachelor’s degree in Petroleum Engineering from an approved
university or equivalent;

• Other applicants who do not have the above necessary

prerequisites and/or the equivalent of the above training will be
required to take courses as deemed necessary by the Programme
Professor, from those offered in UTT’s B.A.Sc. or M.Eng Programme
prior to entry

• Mature student entry: Applicants with significant industry

experience and practice will be considered as determined by the
Programme Professor.

Duration of Study: – 1 Year Full-time

 Master of Science (M.Sc.)
Reservoir Engineering
Programme Overview:
• Offered to students who possess a Bachelors Degree in
Petroleum Engineering;

• Provides hands-on training in the use of software

applications for Reservoir Simulation, Well Test Analysis
and Fluid Flow from Reservoir to Surface

• Prepares graduates for a specialized career in reservoir

engineering.
 M.Sc. Reservoir Engineering
Advanced Engineering Mathematics Credits

Advanced Petroleum Geoscience

Term 1 16
Modern Petroleum Management
Reservoir Characterization

Advanced Reservoir Engineering

Advanced Reservoir Simulation 16
Term 2
Advanced Well Test Analysis
Improved Oil Recovery

Term 3 Project 16 credits

 Master of Philosophy (M.Phil)
Entry Requirements:
• Taught Master’s Degree from an approved university
with a B average GPA.

• Bachelor’s degree from an approved university with

a B+ average or Upper Second Class Honours or
equivalent GPA.

• Other qualifications and experience deemed to be

suitable by the Board for Post Graduate Studies,
Research and Development

• A student initially registered for an M.Phil. may be

upgraded to a Ph.D. program
MSc by Employment Type
2005 – 2011(87 graduates)
B.Sc / B.A.Sc/M.Eng by Employment Type
2006 – 2011(40 Graduates)
MSc by Operator Company
 MSc by Service Company

weatherford; 1
Tucker; 1
baroid; 0 MSc Company by
Tuscany Drilling; 0
Company

Kenson Group of company; 0 Schlumberger; 5

Schlumberger
Baker
Kenson Group of company
Tucker
weatherford
baroid
Baker; 5
Tuscany Drilling
B.Sc/B.A.Sc /M.Eng by Operator Company
 B.Sc/B.A.Sc /M.Eng by Service Company

BSc, MENg, BASc by Company

Schlumberger; 0

Tuscany Drilling; 1

Baker; 3

baroid; 2

Schlumberger

Baker

Kenson Group of
company
Tucker

weatherford

baroid

Tuscany Drilling
Tucker; 0 weatherford; 0 Kenson Group of company; 1
MSc by Job Type
BSc/BASc/MEng by Job Type
Petroleum Engineering
As A Career

37
Role of Petroleum Engineer

• Economic & environmentally safe

production of petroleum resources

• Maximum possible recovery of petroleum

from a reservoir

38
Petroleum Geologist
• Petroleum geologists
look at the structural and
sedimentary aspects of
the stratum / strata to
identify possible oil
traps. Petroleum
geologists make the
decision on where
drilling occurs.
39
Reservoir Engineers
• Reservoir engineers work to
optimize production of oil and
gas via proper well placement,
production levels, and
enhanced oil recovery
techniques

• Develop, control and operate

petroleum reservoirs for
maximum recovery of oil & gas

40
Reservoir Engineers
• Reservoir engineers work to
optimize production of oil
and gas via proper well
placement, production
levels, and enhanced oil
recovery techniques

• Develop, control and operate

petroleum reservoirs for
maximum recovery of oil &
gas

41
Drilling Engineers
• Drilling engineers manage the
technical aspects of drilling both
production and injection wells.

• Select equipment & material for a

drilling rig

• Prepare cost estimates for drilling

wells

• Supervise drilling operations

42
MWD/LWD & Logging Engineer

• Measure and
record well
variables, for
reservoir
characterization.

43
Cementing Engineer
• Responsible for specialized
cementing operations

• Cementing is performed by
circulating a cement slurry
through the inside of the
casing and out into the
annulus through the casing
shoe at the bottom of the
casing string.

44
Drilling Fluids Engineer
• Mud engineer (correctly called a
Drilling Fluids Engineer, but
sometimes referred to as the "Mud
Man", though women also do this
job today) works on an oil well
drilling rig, and is responsible for
the drilling fluid, also known as
drilling mud which lubricates the
drill bit and clears cuttings from the
borehole.

45
Completion & Workover Engineers
• Design & supervise
the installation of
equipment needed
to transport oil &
gas from the
reservoir to the
surface.

46
Production Engineers
• Production engineers
manage the interface
between the reservoir and
the well
– including perforations, sand
control, artificial lift,
downhole flow control, and
downhole monitoring
equipment
• Responsible for optimizing
gas & oil rates for the well

47
Energy in Trinidad and Tobago
 Agenda
• Government revenue and expenditure
• Trends in oil and gas price
• Main contributors to GDP
• T&T as an oil producer (global context)
• Reason for slump in oil prices
• Overview of Natural Gas sector in T&T
• Recent developments
• Future of T&T
T&T Energy, Non-Energy and Total GDP
Energy GDP (TT$ Billions, 2000 Prices)
Non Energy GDP (TT$ Billions, 2000 Prices)
GDP (TT$ Billions, 2000 Prices)

100
90
80
70
60
50
40
30
20
10
0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013
General oil price trend – 1 year

Source: EIA
 General oil price trend – 10 years
Europe Brent Spot Price FOB (Dollars per Barrel)

160

140

120

100

80

60

40

20

Source: EIA
General oil price trend - 50 years+

http://www.macrotrends.net/1369/crude-oil-price-history-chart
 Though the Energy Sector Remains
the Main Contributor to GDP
Sectoral Composition of GDP At Current Market Prices (%),
p
Sector 1966 1972 1981 1989 1994 2002 2008 2012
Agriculture 6.7 7.1 2.6 2.5 2.2 1.4 0.4 0.6
Petroleum 26.5 20.8 35.7 27.2 29.9 26.2 50.8 43.7
Manufacturing 7.0 10.7 5.0 9.6 7.8 8.0 4.0 6.0
Electricity and Water 1.8 1.9 0.2 1.4 1.3 1.4 0.9 1.3
Construction 4.3 7.7 14.6 8.9 7.6 7.3 8.3 5.0
Transport, Storage and 14.0 12.9 9.7 9.3 8.3 10.1 4.0 5.4
Communications
Distribution 18.2 15.4 11.6 17.4 13.7 16.5 12.1 13.8
Finance, Insurance and Real 7.4 7.0 11.0 11.3 12.4 15.8 8.9 11.0
Estate
Government 8.4 11.3 8.8 11.9 2.1 1.6 7.1 8.7
Other services 7.3 7.1 5.1 7.0 13.6 11.4 3.1 4.3

Source: CSO 54
 Global production of oil

2012 2013 2014

(million barrels per day)
Non-OPEC Production 52.76 54.13 56.00
OPEC Production 37.00 36.03 35.96
Total World Production 89.76 90.16 91.96
T&T Production 0.08 0.08 0.08

Source: EIA and TTCB

T&T Oil Production
81200 BPD

SPE,2014
 Oil Production
• Mature Fields

• Aging Infrastructure

• 16% derived from Gas

 Reasons for global slump in oil prices
A number of forces in the international petroleum
markets have set off this downward trend, namely:
• The application of new technology which has
increased Shale oil and gas production in North
America;
• the economic slowdown which has reduced oil
demand by some of the world’s largest oil
consumers, including China, Japan, and Europe,
• geopolitical objectives, and
• the surplus of oil available in the market with
continuing production by oil producing
countries.
 Reasons for global slump in oil prices
U.S. Field Production of Crude Oil Imports of Crude Oil and
(Thousand Barrels per Day) Petroleum Products (Thousand
Barrels per Day)
10,000

9,000 16000

8,000 14000

12000
7,000
10000
6,000
8000
5,000
6000
4,000
4000
3,000
2000
2,000
0
1,000

0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
 Average price to produce oil from
various sources
Cost of producing one additional barrel of oil
Regions Dollars per barrel ($/bbl)
Arctic 115 to 122
Brazil Ethanol 63 to 69
Central and South America 29 to 35
Deepwater Offshore 54 to 60
EU Biodiesel 106 to 113
EU Ethanol 98 to 105
Middle East Onshore 10 to 17
North Sea 46 to 53
Oil Sands 89 to 96
Former Soviet Union Onshore 18 to 25
Russia Onshore 15 to 21
US Ethanol 80 to 87
US Shale Oil 70 to 77
WAF Offshore Source: Reuters 38 to 44
Breakeven point for select North
American Oil Plays

IHS North America Supply Analytics

Natural Gas
 Natural Gas Price
Natural Gas Price: Henry Hub (US$/MMBTU)
10
9
US$/MMBTU

8
7
6
5
4
3
2
1
0

Natural Gas Price: Henry Hub (US$/MMBTU)

Natural Gas Utilization
3854 MMSCFD

BP Statistical Review
 T&T LNG Exports to Various Markets
70%

60%
North America
50% S. & Cent. America

40% Europe & Eurasia

Asia Pacific
30%

20%

10%

0%
2009 2010 2011 2012 2013
BP Statistical Review
 Natural Gas Market
• Challenges from US Shale Gas

• Consuming 1.4 to 1.5 TCF per year

• Savonette Discovery (1 TCF)

Recent Developments in T&T
 Oil and gas reserves

• Proven crude oil reserves - 728 million barrels -24.93 years

• Proven natural gas reserves - 12.3 BCF -8.2 years

 Investments
• 2014 - US $3.3 billion
2015 – US $3.2 billion
2016 – US $ 3.0 billion

• Juniper US $2.1 billion

Platform to be built at Labidco
Production start up 2017
• Starfish
Production start up 2014

Alleyne, 2014
Drilling Activity
• 2010 – 1132 Rig days

• 2013 – 2485 Rig days

• Active drilling
programme critical for
sustaining production

Alleyne, 2014
 Exploration Success
• Recent Successes
East Galeota Field - 27 MMBO
Trinmar Cluster 6 - 48 MMBO
Savonette – 4 - 1 TCF
Trinity TGAL-1 - 26 MMBO
Repsol TSP - 40 MMBO
• Exploration Success in mature fields is
encouraging
• Continuous Spending is required

Alleyne, 2014
Deep Water Activity

Alleyne, 2014
 Downstream Activity
• US $850 million Methanol to Di-Methyl Ether
plant
• Technical concept is at advanced stage
• Plant will produce methanol from natural gas
• Methanol will be taken to di-methyl ether to
replace propane and diesel

Alleyne, 2014
 Support Services
Galeota Energy Port Providing logistical
support for:

T&T East Coast

Suriname

Guyana

Alleyne, 2014
 Transportation Fuel
• Meeting the challenge of the fuel subsidy
through:

Conversion from liquid fuel to CNG

35 Fueling stations in T&T by 2016

Use of hybrid vehicles

Alleyne, 2014
Energy Policy
 What's constant in Energy?
• These taxes would apply to companies
involved mainly in the Production and Refining
Business of Petroleum and Petroleum
products. There have been no changes made
to the following:
– Petroleum Profits Tax rate of 50% on profits
from Land and Shallow Water Blocks.
– Unemployment Levy rate of 5%.
– Petroleum Profits Tax rate of 35% on profits
from Deep Water Blocks.

77
 What's new under taxes?
From January 1, 2014:
• Under the Supplemental Petroleum Tax regime, an
Investment Tax credit took effect from January 1, 2011,
which allowed companies to claim 20% of expenditure
on development activity for mature fields and
enhanced oil recovery projects as a credit against their
Supplemental Petroleum Tax liability.
• This credit was only available for use in the financial
year within which the expense was incurred; however,
any unused credits would now be allowed to be carried
forward for one year.

78
 What's new for Exploration?
• The existing initial and annual allowances would
be replaced by a new allowance of 100% of
exploration costs to be written off in the year the
expenditure is incurred.
• This allowance would be applicable over the
period 2014 to 2017.
• From 2018, the allowance would be amended to
provide for write off of 50% of the exploration
costs in the first year of expenditure, 30% in the
second year and 20% in the third year.
79
 What's new for Development?
• The existing initial and annual allowances
would be replaced by a new allowance of 50%
of costs in the first year of expenditure, 30% in
the second year and 20% in the third year.
• This allowance would be applicable to both
plant and machinery and the drilling of wells.

80
 What's new for Workovers and
Qualifying Side-tracks?

• An allowance of 100% of the total costs of

work-overs and qualifying side-tracks to be
written off in the year incurred.

81
Future of T&T
 With Seven Sectors Targeted for
Diversification
• Down Stream Energy.
• Tourism.
• Food Sustainability.
• Information Communication Technologies
(ICT).
• Culture and the creative industries.
• Maritime industries.
• Financial Services.

83
 The Future?

After
knowledge
Knowledge based?
based
Industrial

Agricultural

84
 Conclusion
• Energy Sector drives the economy
• Diversification efforts needs to continue
• T&T to become knowledge base hub
• Paradigm shift needed to extract full value
from our hydrocarbon resources
– R&D into new and unconventional methods
– Hub for generating competent professionals

85
Closing Remarks