Slowdown in Trinidad energy sector

Crude oil production fell by some 13.8 percent from the similar period in 2011.

PORT OF SPAIN, Trinidad, Wednesday July 04, 2012 – The twin island republic’s energy sector contracted in the first quarter of 2012, according to the Central Bank's Mid Year Financial Stability Report.

"Preliminary data indicates that domestic economic activity remained sluggish in the first quarter of 2012. Preliminary data from the Ministry of Energy suggests that, despite a substantial uptick in exploration activity, the energy sector may have contracted slightly in the first quarter of 2012."

The report indicated that lower output from British Petroleum Trinidad and Tobago (BPTT), as a result of ongoing maintenance operations, was the principal contributor to this contraction in the sector.

"Crude oil production continued on a declining path, falling by some 13.8 percent from in the similar period in 2011. However, natural gas output was roughly the same as in the year-earlier period. As a result, activity in the refining sub-sector is estimated to have slowed."

The report also noted that although inflationary pressures were well contained in 2011, headline inflation reached double digits during the first four months of this year.

"This rise mostly reflects movements in food prices and was not generalised. On a year-on-year basis to April 2012, headline inflation rose to 11.8 percent from 9.1 percent in the previous month, while core inflation, which excludes food prices edged upwards to 2.2 percent in the twelve months to April 2012 from 1.8 percent in March 2012," the report stated. Click here to receive free news bulletins via email from Caribbean360. (View sample)