Economic History of the Crude Oil Refining Sector of Trinidad and Tobago
Question 5
Describe the economic history of the crude oil refining sector in T&T from its birth to its present status. What was the impact of US tax legislation on this sector? How did the IADB loan revamp the refinery in Petrotrin in 1993? Why was the refinery in Point Fortin closed? Why does the refinery operate at suboptimal capacity? Is the Moraven agreement still active? Outline the prospects for growth in the next decade for the oil refining and gas refining subsectors of the petroleum sector of the T&T economy.
Preamble
To understand the impact of the Refining Sector on the economy of Trinidad and Tobago, we must consider a combination of factors, such as supply and demand streams that have historically impacted this sector. Economic indicators such as the gross domestic product, (GDP) of the country point towards significant historic economic events and as such is an essential indicator correlating history and economic growth. Another indicator lies in the co-relation of government and foreign investors coming together to establish partnership in investments. As such this document aims to correlate local and global events affecting the refining sector with its economic evolution and aims to therefore outline the prospects for growth in the next decade for the oil refining and gas refining subsectors of the petroleum sector of the T&T economy.
List of Tables
Table 1 – Refinery Capacities ________________________________________________pg.7
Table 2 – Global Crude Oil Prices 1907 – 1945__________________________________pg.8
Table 3 – Vehicle Registrations in the United States 1915-1937_____________________pg.9
Table 4 – Value Added Through Refining 1925-1946____________________________ pg.11
Table 5 – Comparison of Oil Produced to Oil Refined 1912 – 1946_________________pg.11
Table 6 – Comparison of Percentage of Total Fiscal Contribution of Crude Oil and__ pg.15
Refinery Output to Total Exports
Describe the economic history of the crude oil refining sector in T&T from its birth to its present status. What was the impact of US tax legislation on this sector? How did the IADB loan revamp the refinery in Petrotrin in 1993? Why was the refinery in Point Fortin closed? Why does the refinery operate at suboptimal capacity? Is the Moraven agreement still active? Outline the prospects for growth in the next decade for the oil refining and gas refining subsectors of the petroleum sector of the T&T economy.
Preamble
To understand the impact of the Refining Sector on the economy of Trinidad and Tobago, we must consider a combination of factors, such as supply and demand streams that have historically impacted this sector. Economic indicators such as the gross domestic product, (GDP) of the country point towards significant historic economic events and as such is an essential indicator correlating history and economic growth. Another indicator lies in the co-relation of government and foreign investors coming together to establish partnership in investments. As such this document aims to correlate local and global events affecting the refining sector with its economic evolution and aims to therefore outline the prospects for growth in the next decade for the oil refining and gas refining subsectors of the petroleum sector of the T&T economy.
List of Tables
Table 1 – Refinery Capacities ________________________________________________pg.7
Table 2 – Global Crude Oil Prices 1907 – 1945__________________________________pg.8
Table 3 – Vehicle Registrations in the United States 1915-1937_____________________pg.9
Table 4 – Value Added Through Refining 1925-1946____________________________ pg.11
Table 5 – Comparison of Oil Produced to Oil Refined 1912 – 1946_________________pg.11
Table 6 – Comparison of Percentage of Total Fiscal Contribution of Crude Oil and__ pg.15
Refinery Output to Total Exports
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