The oil and gas industry has played a pivotal role in Trinidad and Tobago’s economic development over the past century.
Oil and gas accounts for around 40% of Trinidad and Tobago’s GDP and around 50% of government revenues. This means the government is highly dependent on the industry to fund public services and infrastructure.
Oil and gas makes up around 80% of Trinidad and Tobago’s total exports. This brings in vital foreign currency to pay for imported goods and services. It also helps maintain a positive balance of payments.
The oil and gas industry is estimated to employ around 5% of the labor force directly, and more indirectly through supporting industries like- construction, business services, logistics etc. This provides income opportunities though many positions require specialized skills.
Cheap and plentiful natural gas has facilitated the growth of downstream industries like- petrochemicals, fertilizers, iron and steel. These provide additional jobs and export earnings.
Improved infrastructure and living standards: Oil and gas wealth has helped fund roads, utilities, healthcare, education and more. Consequently, Trinidad and Tobago has one of the highest GDP per capita rates in the Caribbean.
However— the economy’s heavy dependence on oil and gas also carries risks, like vulnerability to commodity price swings. Environmental impacts from fossil fuel extraction and processing are also a consideration for sustainable development.