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.

have more stringent rules and laws to follow now,
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. than the ones that were constructed during the last
This paper was selected for presentation by an SPE Program Committee following review of century. Reports such as the Environment Impact
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 Assessments, and Base Line Studies now play an
correction by the author(s). The material, as presented, does not necessarily reflect any
position of the Society of Petroleum Engineers, its officers, or members. Papers presented at integral part in the application to construct a new
SPE meetings are subject to publication review by Editorial Committees of the Society of
Petroleum Engineers. Electronic reproduction, distribution, or storage of any part of this paper plant. Companies now have to apply for Certificate
for commercial purposes without the written consent of the Society of Petroleum Engineers is
prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 of Environmental Clearance before any new plant
words; illustrations may not be copied. The abstract must contain conspicuous
acknowledgment of where and by whom the paper was presented. Write Librarian, SPE, P.O. can be built, new well can be drilled, and existing
Box 833836, Richardson, TX 75083-3836 U.S.A., fax 01-972-952-9435.
plant can be modified, expanded or abandoned.
Abstract
The many industries, including the energy industry,
The emergence of the petroleum, petrochemical, that exist in Trinidad have changed the landscape of
refining, and processing plants, among others the environment both in a positive and a negative
during the past one hundred years in Trinidad has manner. But now there is a culture evolving namely
impacted on the environment. Vegetation has been “we cannot operate like we did in the past.“ Indeed,
removed to accommodate these industries and at the profit is the controlling factor for the energy
same time the ecosystem was disturbed. The industry to survive, but not at the expense of the
wildlife, birds, insects and other reptiles had to environment. The paper presented herein looks at
venture into other areas convenient to their lifestyle. the challenges facing the energy industry as it tries
The tributaries, which continue to empty into the to survive the stern tests of the environmentalists.
major rivers nearby, have been affected by either
sediment or effluent from the various plants and this Introduction:
has interfered with the aquatic life.
Trinidad is unique because there are several
Indeed the country would like to continue receiving industries that traverse the landscape of the country.
cheap abundance of gasoline; the country would These industries range from the energy (also
like to lead the world in the exportation of referred to as the petroleum), the agriculture, the
ammonia, urea, methanol, liquefied petroleum gas; fisheries, the paper, the lumber, the tobacco, the
people would like to have a choice of what soaps, shipping, among the many that are in the country.
detergents, plastics, or other by-products they use; Each has a major impact on the environment in
but everyone must be mindful of the adverse effect Trinidad.
these and other industries are having on the
environment. The one industry that has the most serious impact is
the energy industry. The report presented herein
During the last ten years there has a closer view on looks at the impact the energy (also referred to as
the impact industries are having on the the petroleum) has on the environment. In
environment. The new industries that are emerging 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 petroleum industry in Trinidad can be linked to
the refining, the petrochemicals, and the natural gas. the discovery of the pitch lake by Sir Walter
Raleigh who used the product to caulk his ships. In
The energy industry has been in existence for over the 1850’s, Merrimac Oil started drilling for
one hundred years and contributes significantly to kerosene1. In 1867 the first successful well was drill
the economic development of Trinidad and in Trinidad signaling the birth of the petroleum
Tobago1. History has shown us that the discovery industry. But it was not until 1907 that full
of the pitch lake in 1595 herald the start of the exploration commenced in the east of Trinidad (like
industry2, although it was not until 1907 that greater Guayaguayare) and in other areas in the west (like
emphasis was place on this industry. The continuing Point Fortin)2. Since this first commercial venture in
discovery of natural gas on the East Coast continue Point Fortin, exploration activity spread to virtually
to attract external partners to develop small all areas of the country both onshore and offshore.
industries to utilize the reserves generated3. Thus The southern part of the country proved to be rich in
the exploration, the production, the refining, the oil-bearing rocks and many companies were set up
petrochemicals and the natural gas all form the by British and American firms3.
components of the energy industry and they cannot
be separated since they account for more than 25 % To date over one hundred years have gone and the
GDP (Gross Domestic Product). petroleum industry is still a major revenue earner in
the country. More than twelve thousand (12000)
But the emergence of the Environmental wells have been drilled on land. With these wells
Management Act 2000, the Environmental are gathering stations, tank batteries, pipelines, and
Management Authority, the Certificate of compressor stations.
Environmental Clearance Rule, the Noise Pollution
Rule among others have caused the energy industry Refinery:
to re-examine the way they do things. Where before
there were negative impacts on the environment, With the birth of the petroleum industry, the
now there have to be positive impacts on the refinery came into being. The first refinery was
environment. built in Brighton in 1910 by Trinidad Lake
Petroleum Company. This was a small facility
designed to supply petrol for local assumption. At
Overview: this site an export terminal was constructed the
same year with a storage capacity of six tanks each
The energy industry can be broken into significant capable of holding 64,000 barrels.
parts namely the petroleum (which includes
exploration and production), refining, A few years later, in 1912, another refinery was
petrochemicals and natural gas. Each would be built in Point Fortin by Trinidad Oilfields and oil
defined in the following section and then they products were exported to Britain3.
would be looked at totally on their impact on the
state of the environment in Trinidad and Tobago. In 1914, a small topping still was built in Tabaquite
to supply petrol for local consumption. This crude
Petroleum: from the Tabaquite field was light and yielded
petrol and kerosene.
Petroleum, in its various forms of pitch, crude oil,
and natural gas (chemically classed as In this small country, another refinery was built at
hydrocarbons), helps to make the country one of the Pointe a Pierre in 1916 by Trinidad Leaseholds
wealthiest countries in the Caribbean. The country Limited (TLL) with a capacity initially of 3500
can boast of the largest source of natural asphalt in barrels oil per day. Lines were constructed from
the world. Barrackpore and Forest Reserve fields to transport
crude oil to the refinery at Pointe a Pierre.
SPE 81158 3

Over the years a number of expansions were made FedChem was bought by Norsk Hydro and the plant
to both the Point Fortin and Pointe a Pierre now called Hydro Agri. This plant utilized gas as its
refineries. After the Second World War, in the feedstock.
1950’s the capacity of the Pointe a Pierre refinery
(operated by Texaco) and Point Fortin refinery Between 1981 and present, several plants have been
(operated by Shell) increased to 365,000 bopd and developed on the Point Lisas Industrial Estate. With
100,000 bopd respectively. These companies made the establishment of the petrochemical estate at
use of their deep water berthing facilities. Increase Point Lisas and the construction of world scale
oil production forced these expansions. The ammonia, methanol and urea plants, Trinidad has
demands by the export market drove further now become a major petrochemical player. Phoenix
expansion of the Pointe a Pierre refinery. With the Park Gas Processing Plant can be found on the
merger of companies like Trintoc, Texaco, estate. It removes natural gas liquids (such as
Trintopec to form Petrotrin( Figure 1) led to the propane and butane) from the gas stream and
closure of the Point Fortin refinery and the upgrade converts these liquids into products for export into
and expansion of the Pointe a Pierre refinery. To international markets. For example, the first
date the Pointe a Pierre refinery sits on 2000 acres ammonia plant ( as mentioned previously) was built
of land and is one of the largest industries in in 1959 at the Savonetta facility( now called Hydro
Trinidad3. Agri Trinidad) , and the technology used was
M.W.Kellogg process. To date there are eight
Crude oils vary in composition and are of very little ammonia plants on the Point Lisas estate, with PCS
use unless refined. The refining process segregates Nitrogen housing four (4) plants, Hydro Agri
the crude oil into usable products and prepares them housing three (3) plants and Farmland MissChem
for marketing. The essential function of an oil housing the last one. Of the eight plants, two are the
refinery is to manufacture, as economically as world’s largest producers of ammonia using the
possible, the necessary quantities of liquefied Kellogg Advanced Ammonia Process.
petroleum gas (LPG), aviation gasoline, gasoline,
kerosene, gas oil, lubricating oil, fuel oil, sulphur, Natural Gas:
wax, and asphaltic bitumen among other products
from the crude oil. Some of the main steps in The increasing global demand for natural gas has
refining are gas separation, distillation, cracking, provided an ideal opportunity for this country to
hydro treating, and extraction. develop its natural gas industry. The discovery of
the natural gas has attracted several gas-based
projects from external companies. As mentioned
Petrochemicals: previously, all the petrochemical companies at Point
Lisas use natural gas as a feed stock or fuel for their
The manufacture of oil-based petrochemicals has plants. Following a decision to develop the natural
been a well-established feature of the Pointe a gas industry in 1975, the proven reserves have rose
Pierre refinery after the Second World War. significantly over the past few years. Recently, it
Declining oil production has caused the closure of has been observed that every gas well drilled in the
the manufacture of oil-based petrochemicals. East Coast (Figure 2) adds one trillion cubic feet of
reserves (1 tcf) to the gas industry.
The manufacture of gas-based petrochemicals
begun in 1959 and has been expanding since then. Some of the plants, in Trinidad, that utilizes natural
The first company, which started, was Federation gas are : TTEC, PCS (Nitrogen Trinidad), Hydro
Chemicals Limited, which began to manufacture Agri, Tringen, TTMC, Titan, ISPAT, PPGPL, and
and supply a wide range of petrochemical Petrotrin Refinery.
fertilizers. Other products from this plant were
ammonia, urea, sulphuric acid, and ammonia Located near where the old Point Fortin refinery
sulphate. In 1979 the urea, sulphuric acid and was, is the Atlantic Liquified Natural Gas (LNG)
ammonium sulphate plants were closed, and plant, which has changed the landscape of Point
4 SPE 81158

Fortin. Although two plants are in operation, there out, the petroleum operations provided
is construction on two other plants on the site. The by the licence.
site occupies 120 acres of reclaimed land. These b) An Exploration and Production (Public
plants are being built to capture the market for the Petroleum Rights) Licence which grants
abundance of natural gas that exists in Trinidad off the licensee the exclusive right to
the east coast and the north coast. The liquefied explore for, produce and dispose of
natural gas is shipped to United States of America, petroleum in accordance with the terms
Puerto Rico and Spain. of the licence.
Liquefied natural gas (LNG) is composed primarily c) An Exploration and Production (Private
of methane, which has been chilled to –161 degrees Petroleum Rights) Licence.
Celsius. One cubic foot of LNG would vaporize d) A Production Sharing Contract for
into 600 cubic feet of natural gas. Its use is as conduct of petroleum operations relating
follow: to the exploration, production, and
~ as fuel for steam raising, metal working disposition of petroleum within a
~ as fuel for process heat for cement production prescribed contract area.
~ as fuel for dry agricultural produce
~ as fuel for transportation On the basis of the Petroleum Act and its
~ as fuel to power boilers that create heat for homes subsidiary regulations, The Ministry of Energy and
and offices in temperate countries Energy Industries regulates and give broad direction
The site also has a port area, which consists of a and guidance to the petroleum industry.
LNG jetty, an approach channel and a turning basin.
The jetty handles LNG carriers ranging from 70,000 Further in the petroleum operations, companies and
to 135,000 cubic metres (or 2.5 million to 4.8 their personnel must take all necessary precautions
million cubic feet) in size. It is built according to to ensure that the water resources are not damaged
international standards for design and construction by the escape of petroleum. This is clearly defined
and is capable of operating on a 24-hour basis. by the Petroleum Regulations.

The Mines, Borings and Quarries Act specifically

Legislation: identify that all precautions must be taken when
drilling a well so that no gas or oil may escape into
The energy industry in Trinidad and Tobago is the watercourse.
principally governed by the Petroleum Act (1969),
the Petroleum Regulations (1970), and the Energy Industry and the Environment:
Petroleum Taxes Act (1974).
The demand for energy on a global scale has risen
The Petroleum Act establishes a framework for the astronomically over the past one hundred years.
grant of licences and contracts for the conduct of Consumption levels are expected to reach over 330
petroleum operations, which include activity on million barrels per day (bopd) of crude oil. Over 75
land, and in marine areas. Under the act the % of the current demand is supplied through the use
Ministry of Energy and Energy Industries is of non- renewable fossil fuel resources. The major
responsible for determining the areas to be made for factors attributed to the increase in energy
petroleum operations. Thus persons or companies consumption have been the rapid rates of industrial
wishing to engage in petroleum exploration and and economic growth, fueled by new and innovative
production operations must apply to the Minister of technologies, the ease of availability of new, energy
Energy and Energy Industries1 who may issue the dependant technologies on the consumer market, an
following types of licences or contracts namely: increase in the life expectancy of the human
population and their growth rates.
a) An Exploration (Public Petroleum
Rights) Licence, which grants the The abundant supply of energy has come with a
licensee the non-exclusive right to carry price, not in terms of money but the environment.
SPE 81158 5

Environmental problems span a continuously various energy plants and the petroleum
growing range of pollutants, hazards and ecosystem wells.
degradations over local, regional and global areas. c) Forested Areas:
Many of these problems arise from observable, The tropical forest is a diverse and complex
chronic effects on human and environmental health, system consisting mainly of evergreen
while others stem from perceivable risks associated woody vegetation, forming a thick canopy.
with accidental release of hazardous materials. It contains the largest number of species, of
animals, of any known ecosystem. The
forests are fragile, and once damaged could
Ecological Habitat Encountered: never be recovered, or recovery is too slow.
d) Freshwater ponds/Dams:
Many areas have been affected by the They have high biodiversity of aquatic
industrialization of the energy sector. On the plants and animals found in four distinct
outskirts of the plants and installations there are a habitats within the ecosystem, existing
variety of ecological habitats, which have been through a symbiotic relationship with each
affected initially and even when the plants are in other. The four habitats are the water
operation. surface, open-water habitat, pond
These ecological habitats include : floor/sediment habitat and the shore habitat.
~ agricultural fields ( like sugar cane) If one of these systems is disturbed then
~ rice fields there is a change to the whole ecosystem.
~ forested areas Thus these areas are very sensitive to the
~ freshwater ponds/dams effluents leaving the energy plants.
~ rivers/streams e) River/Stream:
~ mangrove forests A river is an aquatic environment in which
~ salt marshes the dominant physical condition is water
~ freshwater swamps current, which is constant and
~ roadways unidirectional. Rivers and streams are rich
~ rocky intertidal shore and diverse with their plant and animal
~ sandy beaches communities.
~ gravel beaches f) Mangrove forests:
a) Agricultural fields: They are wetland ecosystem and include the
Many of the acreage in the south of Trinidad entire complex of plant and animal
are sugar cane fields. Although it is one communities established on the
plant specie it sustains the sugar industry, superstructure created by mangrove trees.
which has been in existence since the days Some trees have prop roots, which are
of slavery and indentureship. Thus the exposed to the air and provide a large
removal of sugar lands to accommodate surface area for other organisms to thrive
energy industries like Point Lisas Industrial upon. These prop roots and trapped
Estate, Incogen Plant and exploration wells sediments form the framework for the rest of
has caused a decrease in the acreage. the ecosystem, which includes a variety of
b) Rice Fields : salt-tolerant species. Mangrove ecosystems
These fields are highly productive wetland typically occur on relatively flat, sheltered
ecosystem, which is important to migrating land between the high and low tide zones in
waterfowl and a diverse resident fauna. regions with high year-round precipitation.
They are based on the dominant rice plant g) Salt Marshes:
together with various species of freshwater They are highly productive ecosystems,
plants, which trap sediments and stabilize which are important to offshore fisheries,
the fields from erosion. These fields are migrating waterfowl and a diverse resident
regarded as high priority because of their fauna. They are based upon various species
sensitivity to the effluents leaving the of salt marsh grasses, which trap sediments
6 SPE 81158

and stabilize the marsh from erosion. communities and are commonly shorebird-
Marshes usually range from areas that are feeding areas.
completely exposed to areas that are forested l) Gravel Beaches:
and/or shoreline areas. Gravel beaches include a wide variety of
h) Freshwater Swamps: habitats, and the biological community is
Freshwater swamps are highly productive composed of a few species.
ecosystems that provide habitats for a wide
mosaic of plant and animal species. Swamps
generally consist of ridges and depressions Variation To The Ecosystem:
(lagoons). The ridges are colonized with
stands of mixed swamp wood and the Drilling and production, which form major part of
lagoons with herbaceous vegetation, which the petroleum industry is also referred to as the
trap sediments and stabilize the marsh from upstream section of that industry. Refining and the
erosion. Freshwater swamps are particularly petrochemicals are often referred to as the
susceptible to physical disturbance. downstream industries. Since drilling and
i) Roadways: production for both crude oil and natural gas form
The many roadways in the industrial areas the basis of the energy industry they would be
are devoid of plant and animal species. discussed further in this section.
j) Rocky Intertidal Shore:
The rocky intertidal shore is characterized As mentioned there are about 12000 wells drilled on
by solid surfaces for colonization by a land traversing the southern part of the country.
variety of organisms. The many different Prior to these wells being drilled there were green
rock configurations of the rocky intertidal vegetation and trees in the areas. But the need for
shore result in numerous habitats namely achieving cheap form of energy saw the need to
exposed rock faces, sheltered overhangs, drill for crude oil. The geology of the country
crevices, deep or shallow pools, soft showed signs of encouragement and from 1907 to
sediments trapped in fissures or under present acres of vegetation has been removed to
boulders. The resulting plant and animal accommodate drilling rigs and well installations. If
communities are rich. each installation used about 1 ½ acres of cleared
k) Sandy Beaches: area, then the 12000 wells would have used 18000
Sandy beaches and tidal flats account for a acres. In removing the vegetation some trees would
substantial portion of the marine intertidal have also been removed, insects would have been
habitat and can be classified into secondary removed, animals would have been removed and
habitats as exposed sandy beaches, sheltered watercourses would have been disturbed. The
sandy beaches and tidal flats. ecology would have been interfered with in order to
Exposed sandy beaches contain well-sorted pursue the development of the energy industry.
fine to very coarse sand on a steep beach The preparation of drilling sites can cause local
slope. These beaches contain simple impact on the environment, including erosion, soil
communities and are commonly a shorebird compaction, and sterilization. The development of a
resting and feeding habitat. drilling site involves construction of roads to the
Sheltered sandy beaches are composed of sites, and a level surface at the sites.
poorly sorted fine sand or mud near the low-
tide zone and medium to coarse sand on the The heavy equipment used to prepare the sites can
upper beach. This habitat supports a cause compaction of the soil thus preventing water
moderately rich biological community on a and other nutrients from flowing through the pore
more stable beach. system. This retards root development in plants and
Tidal flats are broad low-tide zone, backed limits site restoration after abandonment.
by sandy beaches, salt marshes or mangrove Depending on the site it would take decades before
forests. They contain biologically rich any sign of vegetation can be observed. Drilling
sites are often sprayed with weedicides to prevent
SPE 81158 7

growth from around the well and even along the to increase its density. Other materials
roadways. Treated areas would remain devoid of which can be added are calcium
vegetation for many years. carbonate, iron carbonate, ilmenite
Drilling a well entails: (FeO-TiO2 ), and hematite ( Fe2O3).
~ the clearing of the land, c) Lost circulation control – fluid is lost
~ construction of roads, to the permeable formation due to
~ movement of heavy equipment pressure variation. To minimize this
~ resurfacing areas to accommodate the loss, small particles are added to assist in
heavy equipment, preventing further loss. This usually
~ generating electricity for the rig via works together with viscosity control
generators, operating the rig 24 hours per additives.
day, d) pH control – a high value is needed (
~ moving equipment regularly, between 9.5 to 10.5) in drilling
~ dumping contaminated mud (drilling operations . This will also prevent
fluids) to pits, corrosion to the drilling equipment.
The process of drilling oil and gas wells generates a e) Formation damage control – many
variety of different types of wastes, which have formations contain active clays that
found themselves in the habitats mentioned before. swell upon contact with water. These
Drilling a well entails the rotation of a drill bit into swelling can plug the pores in the
the subsurface rocks until the desired depth is reservoir thus lowering its permeability.
achieved. The rig and its components are designed To prevent same from occurring, salts
to control how the bit pushes into the rock. Drilling are added to prevent the water molecules
fluid also called drilling mud is used to control the from exchanging with the cations in the
reservoir pressure, cool the bit, form a wall cake clays. Sodium and potassium chlorides
along the formation, keep cuttings in suspension, are commonly used.
and brings cutting to surface.
To dispose of the drilling cuttings from onshore
The major ways in which the drilling can impact on wells, the cuttings and any contaminated drilling
the environment are from drill cuttings (which are fluids are put into a reserved pit. These pits are
rock fragments which come to the surface), and lined so that there is no leaching into the ground so
contaminated drilling fluids. Drilling fluids are as to affect the ground water table. After the drilling
mostly water-based and additives are used in the rigs moves off location the reserve pits are still
fluid to ensure it can control any abnormal pressures there. Although not in use for drilling operations,
that may be encountered while drilling. Such they have been found convenient for the production
additives5 are used to control viscosity, density, lost operations to dump their oily sludges. As time
circulation, pH, formation damage among others. passed by these pits became chronic polluted sites,
a) Viscosity control – one of the most which are now being remediated.
important functions of the drilling fluid
is to bring the cuttings to surface. Since Just like drilling, production of oil and gas generate
the cuttings are heavier than the water- a substantial amount of waste. During the
based fluid, viscosifiers like hydratable production phase both water and formation solids
clay, must be added to assist in are produced with the crude oil and natural gas. The
increasing the viscosity. These clays produced materials are passed through separation
can contain elements like aluminum, equipment and separated out. The largest
barium, calcium, copper, iron, volume of waste is the produced water. From
magnesium, and silicon to name a few. mature fields, like the ones in Trinidad, the volume
b) Density control – since another function can be substantial greater than the volume of oil
of the drilling fluid is to control any being produced. The produced water can also
abnormal pressures while drilling, barite contain dissolved solids like sodium chloride, with
( barium sulphate) is added to the fluid calcium, magnesium, and potassium in high
8 SPE 81158

concentrations. Other metals like cadmium, Human Health – the impact of hydrocarbons on
chromium, copper, lead, nickel, silver and zinc human depends on whether exposure was from
occur in very small amounts. But their ingestion, inhalation or dermal contact, and whether
concentrations can be large enough to impact on the the exposure was acute or chronic.
environment.
A wide variety of air pollutants are generated and
emitted during the processes of finding crude oil Plant growth – hydrocarbons can impact on plant
and natural gas. These air pollutants include growth when released on land. Levels of crude oil
primary oxides of nitrogen, volatile organic and grease above a few percent in soils have shown
compounds, oxides of sulphur, carbon monoxide degradation of plant growth.
and particulates. The largest source of this air
pollution is the operation of the internal combustion Both refining and the petrochemical plants depend
engines used to power drilling and production on the drilling and production of crude oil and
activities such as drilling rigs, compressors and natural gas. The impacts by these plants also would
pumps. These engines use either diesel or natural have the same effect like the former. The discharge
gas as their fuel source. of their effluent, which consists mostly of water,
would affect the river streams and the oceans that
Many of the wastes associated with drilling and they eventually empty into. The air emissions would
production operations have the potential to impact be the same as that mentioned previously.
on the environment. The potential impacts depend
primarily on the material, its concentration after Initiatives Taken To Preserve The Environment:
release and the biotic community that is exposed.
The most common measure of the potential The Government of Trinidad and Tobago, through
environment impact of the material is toxicity. The Ministry of Energy and Energy Industries,
Toxicity occurs when a material causes a continues to promote as its basic policy the
deleterious effect on an organism, population or sustainable development of the energy sector, which
community. These effects can range from includes exploration, production, refining, and
temporary disorientation to lethality. The toxicity of marketing of petroleum and its by-products. These
a substance is the measure of how it impairs the life objectives are achieved through regulations aimed
and health of living organisms following the at ensuring tat operations are conducted safely, with
exposure to the substance. In most cases the effects concerns for human health and minimal impact on
of the substance on human health and life is of the environment. Some of the regulations are:
primary importance. Two types of toxicity ~ Petroleum Act (1969)
measurements are dose and concentration. ~ Oil Pollution of Territorial Water Act (1951)
~ Litter Act (1973)
The release of crude oil of natural gas into the ~ Merchant Shipping Act, 1995:Part VI “
environment can affect marine animals, the Prevention of Pollution”
ecosystems, human health, and plant growth. ~ The Environmental Management Act (2000)
~ Draft Merchant Shipping and Marine Security
Marine animals – the actual impact is very Bill
complex. Behavioural changes from exposure to the As the Government authority responsible for the
hydrocarbons are primarily those involving motility, prevention, abatement, and combating of oil
while in higher organisms, changes can affect pollution in all areas the Ministry of Energy and
avoidance, burrowing, feeding, and reproductive Energy Industries has assumed the role of initiator
activities. and coordinator of spill prevention and emergency
response plan in Trinidad and Tobago. Thus to safe
Ecosystems – there has been no long-term effects guard the energy industry the National Oil Spill
because after the hydrocarbon source has been Contingency Plan (NOSCP) was first drafted in
removed, full recovery usually takes place. 1974. It is intended to delineate responsibilities for
the operational response to oil spill incidents both
SPE 81158 9

major and minor. This will assist in minimizing ~ all land and marine operations in exploration and
damages to both land and marine environments. The production of oil and gas.
main objective of the plan is to ensure timely and ~ the refinery at Pointe a Pierre
effective response to oil spills or threats of oil spills. ~ all the petrochemicals plants at Point Lisas.
This is accomplished by: ~ all gas stations
~ any other energy related facilities.
~ Establishing a viable operational The Inspectors are also involved in the following:
organization with representation from all ~ investigation of all oil spills and chemical
concerned agencies. discharge incidents.
~ Coordinating the roles of the different ~ regular inspections of petroleum installations and
agencies to ensure that effective control is surrounding areas such as drilling and workover
exercised to protect the environment against rigs, production platforms, gathering stations, rivers
oil spills. and coastal areas including beaches.
~ Identifying activities/processes that are at Companies in the energy sector have established a
high risk for the release of hydrocarbons Health, Safety and Environment Section to ensure
into the environment. that all the legislation is adhere. At the same time
~ Identifying sensitive coastal and other each company has developed an Environmental
areas for protection and clean-up. Policy, which is structured along the framework of
~ Ensuring that participating agencies within the National Environmental Policy.
the energy sector maintain stockpiles of
equipment in readiness for response to oil In the midst of the operation of the energy sector,
spills. there exists a Wild Fowl Trust near the Point a
~ Providing training of management and Pierre Refinery. This Trust encompasses twenty-six
operational personnel. hectares and two lakes within a large oil refinery
indicating that industry and conservation can work
Recognizing that the marine environment and the side by side. The Trust is actively involved in
living organisms it supports are vital to the peoples research and captive breeding of endangered species
of this twin island state, The Government has taken of waterfowl and other indigenous birds for the
special interest in ensuring that the country’s release and reintroduction into the natural wildlife
territorial waters are managed so that their quality areas.
and the resources they contain within them are not
impaired. If one were to look at where the energy The Economy and The Energy Industry:
industries are located, they are near the Gulf of
Paria on the west coast, and the Atlantic Ocean on Crude oil production begun in 1908, and reached its
the east coast. Then there are watercourses peak in 1978, when successful discoveries were
emptying into these two major sea bodies. These made on the East Coast. As one sector declined over
watercourses traverse the major producing land that past twenty years, another sector increased
fields. namely the natural gas. To understand why the
country enjoyed a healthy economy in 1978, was
The Certificate of Environment Clearance Rule, because the oil price rose to over USD $ 25 per
which is now law, requires companies to conduct barrel, and continued to rise in the early 1980’s
Environment Impact Assessments. This has become before there was a turn of events which saw oil
necessary to safe guard the wildlife and forestation price falling to below USD $ 15 per barrel. From
that surrounds us. the mid-1980’s the energy sector contribution to the
Before the emergence of the Environmental country’s economy fell to 21 %. This resulted from
Management Authority, the Ministry of Energy and the fall in international crude oil prices. In view of
Energy Industries through its Inspectorate Division this and not being able to discover new crude oil
monitored the environmental quality in the energy reserves, the shift in the energy industry resulted in
sector which included the following: 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