Introduction to Oil and Gas in

Trinidad and Tobago

Dr. David Alexander
Monday 2nd February, 2015

History of Trinidad & Tobagos Energy

Sector
1866 - First successful onshore oil
well
1904 - Mines department formed
, now MOEEI
1908 - Commercial onshore oil
production
1910 - First export of oil from
Brighton
1968 - Commercial oil discovered
off Mayaro
1972 National Petroleum (NP)
formed
2

History of Trinidad & Tobagos

Energy Sector
1975 - National Gas Company
(NGC)
1978 - Highest oil production
230,000 bopd
1980s - Natural Gas based
Petrochemical Plants established
at Pt Lisas
1990s - Significant gas discovered
east coast marine area
1999 - First cargo LNG exported
from Pt. Fortin

Importance of the Petroleum Sector

Trinidad and Tobagos
Population - 1. 3 million
Petroleum Jobs - <5% of
direct employment
Energy sector provides
approximately 75% of
foreign currency
4

Trinidad & Tobagos Production Profile

T&T Oil & Gas Production Profile:- 1970 to 2008
4500

250

200

3500
3000

150

2500
2000

100

1500
ALNG

1000

50

500
0
1970

1975

1980

1985

1990

1995

2000

2005

Year
Gas Rate (mmscfd)

Oil Rate (mbopd)

Gas Rate (mmscfd)

4000

Petroleum Programmes at UTT

Petroleum Engineering
What is petroleum engineering?
Petroleum engineering is a field of engineering
concerned with the activities related to the
production of hydrocarbons, which can be either
crude oil or natural gas.

Vision
Vision of the UTT is to be an entrepreneurial university
that:
produces graduates with broad integrated skills
maximises the benefit of new and emerging
technologies; and
undertakes R&D activities aimed to keep Trinidad
and Tobago in the vanguard of niche technologies of
key importance to the nation

Mission
To be an entrepreneurial university designed
discover and develop entrepreneurs
commercialise research and development
spawn companies for wealth generation and sustainable
job creation

towards the equitable enhancement of the quality of

life of all individuals, families and communities of
the Republic of Trinidad and Tobago and the
Caribbean

The UTT Brand

World class standards Education with a global
vision
Industry-ready graduates
Seamless articulation
Entrepreneurship inside
Partnering with industry

Accreditation
Energy Institute of the UK
B.Sc. Petroleum Engineering 2004 - 2007
M.Sc. Petroleum Engineering 2007 - 2015
M.Sc. Petroleum Technology 2006 2007
B.A.Sc. Petroleum Engineering 2011- 2015
M.Eng. Petroleum Engineering 2010 2015
M.Sc. Reservoir Engineering 2011- 2015
11

Doctor of Philosophy
(Ph.D.)

Programme
Levels

Master of Philosophy
(M.Phil.)
Master of Science (M.Sc.)
Master of Engineering (M.Eng.)
Bachelor of Applied Science
(B.A.Sc.)

National Engineering Technicians Diploma

(N.E.T.D.)

National Engineering Technicians

Diploma (NETD)
Entry Requirements:
Passes in at least 5 subjects at CXC General
Proficiency (Grades I, II or III) inclusive of
Mathematics, English Language, Chemistry and
Physics
Duration of Study:
2-Years Full Time / 4-Years Part-Time

B.A.Sc. Programme
Entry Requirements
Pass in CAPE I and II and/or Cambridge A level subjects:
Mathematics and either Chemistry or Physics
and
Pass in CAPE Communication Studies and Caribbean Studies and/or
Cambridge General Paper
and
O-Level/CSEC Physics and Chemistry
OR
Diploma Petroleum Engineering
Duration of Study:

3 Years Full Time / 4 1/3 Years Part-Time

14

B.A.Sc. Programme

Credits

Year 1

Common to all
B.A.Sc. Disciplines

36

Year 2

Petroleum Engineering
75%
Research & Design
8%
Humanities & Social Science 17%
Industry outplacement Term 3

36

Year 3

Petroleum Engineering
70%
Research & Design
15%
Humanities & Social Science 15%
Industry outplacement Term 3

36

B.A.Sc. Graduate

108 credits

M.Eng. Programme
Entry Requirements

UTT B.A.Sc. Programme

Duration of Study:
1 Year Full Time / 1 1/3Years Part-Time

16

M.Eng. Programme
Petroleum Engineering
Year 4

Research & Design

33%
50%

Humanities & Social Science 17%

M. Eng. Graduate

144 credits

36
credits

B.A.Sc./M.Eng. Petroleum Engineering Pre-Requisites

MATH110B
Engineering
Mathematics 1

ENSD110B
Engineering
Systems
Dynamics
SCMT110B
Scence. of
Material

PROG110B
Programming
1

MATH210B
Engineering
Mathematics 111

MATH110B
Engineering
Mathematics 11

PSWK110B
Problem
Solving
Workshop

ENVM310B
Environmental
Management
PENG210B Into.
Petroleum
Engineering

GEOS210B
Intro. Geoscience

WLOG210B Basic
Well Logging

LWDP110B
Laboratory
Workshop

Year 1 (36)

PEDP320B
Petroleum
Design
Project

PROD410B
Production
Engineering

GEOL320B
Pet. Geology

PETR220B
Petro-physics 1

WTST320B
Well Testing

LBWD210B
Laboratory
Workshop

PJMT220B
Project
Management

QHSE310B
Quality
Assurance

Year 2 (36)

FNMT320B
Financial
Management

GSTS310B
Intro.
Geostatistics

IMOR410B
Improved Oil
Recovery

RESM410B
Reservoir
Simulation 1

PERP420B
PGE Project

NGAS320B
Natural Gas
Engineering

FFPM220B
Fluid Flow in
Porous Media

PDWK110B
Professional
Development
Workshop

LIFE110B
Life Sciences

PROD310B
Production
Engineering

SDRK220B
Sedimentary
Rocks

PBMS220B
Phase Behaviour

VEGR110B
Visualization

ENGS110B
Eng. Seminars

DRLG310B
Drilling
Engineering

DRLG410B
Drilling
Engineering 11

RESV310B
Reservoir
Engineering

ELEC110B
Introduction
to Electrical
Systems

THRM110B
Thermodynamics
1

COMM110B
Communication
Skills

MATH220B
Engineering
Mathematics IV

BPRE210B
Business
Practices

Year 3 (36)

RMAL410B
Research
Methods

PERA420B
Petroleum
Economics

CTLN410B
Contract Law
&
Negotiation

18

Year 4 (36)

MSc Petroleum Engineering

Student Qualifications

BSc Graduates
Engineering Disciplines
Geoscience Disciplines
Physics and Mathematics
Chemistry

MSc Degree in Petroleum

Engineering Course Outline

1st Term 22 Credits

Engineering

Fundamentals of
Petroleum
Geoscience

(2 Credits)

(4 Credits)

Basic Well
Logging for
Masters

Drilling Practices

Industry Overview for

Petroleum

(2 Credits)

(2 Credits)

Drilling, Completions
and Workovers
(2 Credits)
Shaly Sand
Petrophysics
(3 Credits)

Production
Operations for
Petroleum
Engineering

Basic
Reservoir
Engineering

Introduction to
Natural Gas
Engineering

(2 Credits)

(3 Credits)

(2 Credits)

2nd Term 27 Credits

Introduction to
Research for Petroleum
Masters

Advanced Well
Logging

Applied Pressure
Transient Analysis

(3 Credits)

(5 Credits)

(2 Credits)

Gas Reservoir
Management

Thermal Heavy
Oil Recovery

(2 Credits)

(5 Credits)

Natural Gas
Engineering for
Masters

Reservoir
Characterization

Applied
Reservoir
Simulation

Petroleum Risk
and Decision
Analysis

(2 Credits)

(2 Credits)

(3 Credits)

(3 Credits)

3rd Term 16 Credits

Project Thesis Overview

Field Development Study
Reservoir Evaluation Study
Well Performance Study
Petroleum Related Study

Project Thesis Review

Year

Corporate Support
EOG Repsol bpTT BGTT Petrotrin UTT
2011 2
2
2
2012 3
2
6
1
2013 3
2
2
1
3

Master of Science (M.Sc.)

Reservoir Engineering
Entry Requirements:

Bachelors degree in Petroleum Engineering from an approved

university or equivalent;

Other applicants who do not have the above necessary

prerequisites and/or the equivalent of the above training will be
required to take courses as deemed necessary by the Programme
Professor, from those offered in UTTs B.A.Sc. or M.Eng Programme
prior to entry

Mature student entry: Applicants with significant industry

experience and practice will be considered as determined by the
Programme Professor.
Duration of Study: 1 Year Full-time

Master of Science (M.Sc.)

Reservoir Engineering
Programme Overview:
Offered to students who possess a Bachelors Degree in
Petroleum Engineering;
Provides hands-on training in the use of software
applications for Reservoir Simulation, Well Test Analysis
and Fluid Flow from Reservoir to Surface
Prepares graduates for a specialized career in reservoir
engineering.

M.Sc. Reservoir Engineering

Advanced Engineering Mathematics
Term 1

Advanced Petroleum Geoscience

Credits

16

Modern Petroleum Management

Reservoir Characterization
Advanced Reservoir Engineering
Term 2

Advanced Reservoir Simulation

Advanced Well Test Analysis
Improved Oil Recovery

Term 3

Project

16 credits

16

Master of Philosophy (M.Phil)

Entry Requirements:
Taught Masters Degree from an approved university
with a B average GPA.
Bachelors degree from an approved university with
a B+ average or Upper Second Class Honours or
equivalent GPA.
Other qualifications and experience deemed to be
suitable by the Board for Post Graduate Studies,
Research and Development
A student initially registered for an M.Phil. may be
upgraded to a Ph.D. program

MSc by Employment Type

2005 2011(87 graduates)

B.Sc / B.A.Sc/M.Eng by Employment Type

2006 2011(40 Graduates)

MSc by Operator Company

MSc by Service Company

weatherford; 1
Tucker; 1

Kenson Group of company; 0

Baker; 5

baroid; 0
Tuscany Drilling; 0

MSc Company by
Company

Schlumberger; 5

Schlumberger
Baker
Kenson Group of company
Tucker
weatherford
baroid
Tuscany Drilling

B.Sc/B.A.Sc /M.Eng by Operator Company

B.Sc/B.A.Sc /M.Eng by Service Company

BSc, MENg, BASc by Company
Schlumberger; 0
Tuscany Drilling; 1
Baker; 3
baroid; 2

Schlumberger
Baker
Kenson Group of
company
Tucker
weatherford
baroid
Tuscany Drilling
Tucker; 0

weatherford; 0

Kenson Group of company; 1

MSc by Job Type

BSc/BASc/MEng by Job Type

Petroleum Engineering
As A Career

37

Role of Petroleum Engineer

Economic & environmentally safe
production of petroleum resources
Maximum possible recovery of petroleum
from a reservoir

38

Petroleum Geologist
Petroleum geologists
look at the structural and
sedimentary aspects of
the stratum / strata to
identify possible oil
traps. Petroleum
geologists make the
decision on where
drilling occurs.
39

Reservoir Engineers
Reservoir engineers work to
optimize production of oil and
gas via proper well placement,
production levels, and
enhanced oil recovery
techniques
Develop, control and operate
petroleum reservoirs for
maximum recovery of oil & gas

40

Reservoir Engineers
Reservoir engineers work to
optimize production of oil
and gas via proper well
placement, production
levels, and enhanced oil
recovery techniques
Develop, control and operate
petroleum reservoirs for
maximum recovery of oil &
gas
41

Drilling Engineers
Drilling engineers manage the
technical aspects of drilling both
production and injection wells.
Select equipment & material for a
drilling rig
Prepare cost estimates for drilling
wells
Supervise drilling operations
42

MWD/LWD & Logging Engineer

Measure and
record well
variables, for
reservoir
characterization.

43

Cementing Engineer
Responsible for specialized
cementing operations
Cementing is performed by
circulating a cement slurry
through the inside of the
casing and out into the
annulus through the casing
shoe at the bottom of the
casing string.

44

Drilling Fluids Engineer

Mud engineer (correctly called a

Drilling Fluids Engineer, but
sometimes referred to as the "Mud
Man", though women also do this
job today) works on an oil well
drilling rig, and is responsible for
the drilling fluid, also known as
drilling mud which lubricates the
drill bit and clears cuttings from the
borehole.

45

Completion & Workover Engineers

Design & supervise
the installation of
equipment needed
to transport oil &
gas from the
reservoir to the
surface.

46

Production Engineers
Production engineers
manage the interface
between the reservoir and
the well
including perforations, sand
control, artificial lift,
downhole flow control, and
downhole monitoring
equipment

Responsible for optimizing

gas & oil rates for the well
47

Energy in Trinidad and Tobago

Agenda

Government revenue and expenditure

Trends in oil and gas price
Main contributors to GDP
T&T as an oil producer (global context)
Reason for slump in oil prices
Overview of Natural Gas sector in T&T
Recent developments
Future of T&T

T&T Energy, Non-Energy and Total GDP

Energy GDP (TT$ Billions, 2000 Prices)
Non Energy GDP (TT$ Billions, 2000 Prices)
GDP (TT$ Billions, 2000 Prices)
100
90
80
70
60
50
40
30
20
10
0
2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

General oil price trend 1 year

Source: EIA

General oil price trend 10 years

Europe Brent Spot Price FOB (Dollars per Barrel)
160
140
120
100
80
60
40
20
0

Source: EIA

General oil price trend - 50 years+

http://www.macrotrends.net/1369/crude-oil-price-history-chart

Though the Energy Sector Remains

the Main Contributor to GDP
Sectoral Composition of GDP At Current Market Prices (%),
p

Sector
Agriculture

1966
6.7

1972
7.1

1981
2.6

1989
2.5

1994
2.2

2002
1.4

2008
0.4

2012
0.6

Petroleum

26.5

20.8

35.7

27.2

29.9

26.2

50.8

43.7

Manufacturing

7.0

10.7

5.0

9.6

7.8

8.0

4.0

6.0

Electricity and Water

1.8

1.9

0.2

1.4

1.3

1.4

0.9

1.3

Construction

4.3

7.7

14.6

8.9

7.6

7.3

8.3

5.0

Transport, Storage and

Communications
Distribution

14.0

12.9

9.7

9.3

8.3

10.1

4.0

5.4

18.2

15.4

11.6

17.4

13.7

16.5

12.1

13.8

Finance, Insurance and Real

Estate
Government

7.4

7.0

11.0

11.3

12.4

15.8

8.9

11.0

8.4

11.3

8.8

11.9

2.1

1.6

7.1

8.7

Other services

7.3

7.1

5.1

7.0

13.6

11.4

3.1

4.3

Source: CSO

54

Global production of oil

2012

2013

2014

(million barrels per day)

Non-OPEC Production

52.76

54.13

56.00

OPEC Production

37.00

36.03

35.96

Total World Production

89.76

90.16

91.96

T&T Production

0.08

0.08

0.08

Source: EIA and TTCB

T&T Oil Production

81200 BPD

SPE,2014

Oil Production
Mature Fields
Aging Infrastructure
16% derived from Gas

Reasons for global slump in oil prices

A number of forces in the international petroleum
markets have set off this downward trend, namely:
The application of new technology which has
increased Shale oil and gas production in North
America;
the economic slowdown which has reduced oil
demand by some of the worlds largest oil
consumers, including China, Japan, and Europe,
geopolitical objectives, and
the surplus of oil available in the market with
continuing production by oil producing
countries.

Reasons for global slump in oil prices

Imports of Crude Oil and
Petroleum Products (Thousand
Barrels per Day)

U.S. Field Production of Crude Oil

(Thousand Barrels per Day)
10,000
9,000

16000

8,000

14000
12000

7,000

10000

6,000

8000

5,000

6000

4,000

4000

3,000

2000

2,000

1,000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Average price to produce oil from

various sources
Cost of producing one additional barrel of oil
Regions
Dollars per barrel ($/bbl)
Arctic
115 to 122
Brazil Ethanol
63 to 69
Central and South America
29 to 35
Deepwater Offshore
54 to 60
EU Biodiesel
106 to 113
EU Ethanol
98 to 105
Middle East Onshore
10 to 17
North Sea
46 to 53
Oil Sands
89 to 96
Former Soviet Union Onshore
18 to 25
Russia Onshore
15 to 21
US Ethanol
80 to 87
US Shale Oil
70 to 77
WAF Offshore
38 to 44
Source: Reuters

Breakeven point for select North

American Oil Plays

IHS North America Supply Analytics

Natural Gas

Natural Gas Price

US$/MMBTU

Natural Gas Price: Henry Hub (US$/MMBTU)

10
9
8
7
6
5
4
3
2
1
0

Natural Gas Price: Henry Hub (US$/MMBTU)

Natural Gas Utilization

3854 MMSCFD

BP Statistical Review

T&T LNG Exports to Various Markets

70%
60%
North America

50%

S. & Cent. America

40%

Europe & Eurasia

Asia Pacific

30%
20%
10%
0%
2009

2010

2011

2012

BP Statistical Review

2013

Natural Gas Market

Challenges from US Shale Gas
Consuming 1.4 to 1.5 TCF per year
Savonette Discovery (1 TCF)

Recent Developments in T&T

Oil and gas reserves

Proven crude oil reserves - 728 million barrels -24.93 years
Proven natural gas reserves - 12.3 BCF -8.2 years

Investments
2014 - US $3.3 billion
2015 US $3.2 billion
2016 US $ 3.0 billion
Juniper US $2.1 billion
Platform to be built at Labidco
Production start up 2017
Starfish
Production start up 2014
Alleyne, 2014

Drilling Activity
2010 1132 Rig days
2013 2485 Rig days
Active drilling
programme critical for
sustaining production

Alleyne, 2014

Exploration Success
Recent Successes
East Galeota Field - 27 MMBO
Trinmar Cluster 6 - 48 MMBO
Savonette 4
- 1 TCF
Trinity TGAL-1
- 26 MMBO
Repsol TSP - 40 MMBO

Exploration Success in mature fields is

encouraging
Continuous Spending is required
Alleyne, 2014

Deep Water Activity

Alleyne, 2014

Downstream Activity
US $850 million Methanol to Di-Methyl Ether
plant
Technical concept is at advanced stage
Plant will produce methanol from natural gas
Methanol will be taken to di-methyl ether to
replace propane and diesel

Alleyne, 2014

Support Services
Galeota Energy Port

Providing logistical
support for:
T&T East Coast
Suriname
Guyana

Alleyne, 2014

Transportation Fuel
Meeting the challenge of the fuel subsidy
through:
Conversion from liquid fuel to CNG
35 Fueling stations in T&T by 2016
Use of hybrid vehicles

Alleyne, 2014

Energy Policy

What's constant in Energy?

These taxes would apply to companies
involved mainly in the Production and Refining
Business of Petroleum and Petroleum
products. There have been no changes made
to the following:
Petroleum Profits Tax rate of 50% on profits
from Land and Shallow Water Blocks.
Unemployment Levy rate of 5%.
Petroleum Profits Tax rate of 35% on profits
from Deep Water Blocks.
77

What's new under taxes?

From January 1, 2014:
Under the Supplemental Petroleum Tax regime, an
Investment Tax credit took effect from January 1, 2011,
which allowed companies to claim 20% of expenditure
on development activity for mature fields and
enhanced oil recovery projects as a credit against their
Supplemental Petroleum Tax liability.
This credit was only available for use in the financial
year within which the expense was incurred; however,
any unused credits would now be allowed to be carried
forward for one year.
78

What's new for Exploration?

The existing initial and annual allowances would
be replaced by a new allowance of 100% of
exploration costs to be written off in the year the
expenditure is incurred.
This allowance would be applicable over the
period 2014 to 2017.
From 2018, the allowance would be amended to
provide for write off of 50% of the exploration
costs in the first year of expenditure, 30% in the
second year and 20% in the third year.
79

What's new for Development?

The existing initial and annual allowances
would be replaced by a new allowance of 50%
of costs in the first year of expenditure, 30% in
the second year and 20% in the third year.
This allowance would be applicable to both
plant and machinery and the drilling of wells.

80

What's new for Workovers and

Qualifying Side-tracks?
An allowance of 100% of the total costs of
work-overs and qualifying side-tracks to be
written off in the year incurred.

81

Future of T&T

With Seven Sectors Targeted for

Diversification

Down Stream Energy.

Tourism.
Food Sustainability.
Information Communication Technologies
(ICT).
Culture and the creative industries.
Maritime industries.
Financial Services.
83

The Future?

Knowledge
based

After
knowledge
based?

Industrial

Agricultural

84

Conclusion

Energy Sector drives the economy

Diversification efforts needs to continue
T&T to become knowledge base hub
Paradigm shift needed to extract full value
from our hydrocarbon resources
R&D into new and unconventional methods
Hub for generating competent professionals

85

Closing Remarks