Trinidad and Tobago has a long-standing history in the petroleum sector, with oil and gas production contributing significantly to its economy. The country is the largest oil and natural gas producer in the Caribbean, with oil and gas accounting for around 40% of its GDP and around 50% of government revenues.
The oil and gas industry is estimated to employ around 5% of the labor force directly, with more indirect employment through supporting industries like construction, business services, logistics, and downstream industries. Cheap and plentiful natural gas has facilitated the growth of downstream industries like petrochemicals, fertilizers, iron and steel, providing additional jobs and export earnings.
Improved infrastructure and living standards are a result of oil and gas wealth, with Trinidad and Tobago having one of the highest GDP per capita rates in the Caribbean. However, the economy’s heavy dependence on oil and gas also carries risks, such as vulnerability to commodity price swings and environmental impacts from fossil fuel extraction and processing.
The oil and gas industry has helped fund roads, utilities, healthcare, education, and more, contributing to a positive balance of payments and attracting foreign investment1. Trinidad and Tobago’s energy sector continues to be integral to the long-term economic growth and development of the country, contributing significantly to government revenue, export earnings, and GDP
.However, the country has faced challenges in recent years, such as a decline in natural gas production since 2014, and the need to diversify its industrial output3. Trinidad and Tobago has invited its energy-rich neighbors to process their oil and natural gas in the Caribbean country to produce commodities like liquefied natural gas (LNG) or petrochemicals, utilizing its spare capacity
.In conclusion, the oil and gas industry has played a pivotal role in Trinidad and Tobago’s economic development over the past century, but the country must continue to adapt to changing market conditions and diversify its economy to remain competitive and sustainable.
