THE OCCASION of the release, earlier this month, of the results of the latest gas audit commissioned by the Ministry of Energy and Energy Industries was a moment to take stock of not only volumes but also transparency and accountability governing resource extraction in this country.
“As the Government promised, we are here today to communicate openly and transparently with the country to promote not only a deeper understanding but also an update of our hydrocarbon resources that remain the driving force of the economy,” Minister of Energy Stuart Young said at a special event held in Port of Spain.
Yet, if hydrocarbons are indeed “the driving force of the economy,” you might not be able to tell that judging from the slovenly release of the audit findings, which related to the years 2021 and 2022. Noting the usual timeframe, the minister gave two reasons.
First, he said, there were new auditors “on board,” requiring “a greater level of interaction.” Second, he cited his own role.
“I must take personal responsibility and apologise for the delay as the audit results have been ready for some time but due to my professional commitments, I was unable to present until today,” he said on May 7.
Mr Young, 49, who became Minister of Energy in 2021 and who has been the holder of multiple ministerial posts, did not elaborate. Yet, whatever the exact details of his diary, his conduct flies in the face of an avowed commitment to transparency.
The last audit was released on December 14, 2021, meaning a total of two years, four months, and 23 days elapsed without a report. That audit was done by the Ryder Scott Company, a company that was, at one point, a household name, having done reports for almost two decades before its contract expired. In December 2021, a “highly competitive” tender process to select a consultant for a future audit contract was reportedly “underway”.
It was only in February 2023, however, that the new audit firm, DeGolyer and MacNaughton, was able to kick off work, after an in-depth review of geological and reservoir engineering aspects of the assets. A final report was issued on August 18, 2023.
“The outlook for natural gas continues to be promising,” Mr Young said, meanwhile, of the results, bullishly predicting between 11 and 20 more years of gas, even as he warned this jurisdiction is a “mature province” and even as the second largest volume increase in the audit related to assets in a country beset with risk, Venezuela.
And that’s the thing with these findings, important as they are – they are unrisked, partial projections.
While the State drags its feet and looks to the past, almost every day of 2024 has seen above-average temperatures.
Even if we look at the glass half full and count ourselves fortunate to have some remaining resources amid higher prices, a tsunami of change is coming, whether we confront it or not. The gas audit findings, which are better late than never, should be part of a wider diversification discussion.
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