Energy analyst Javed Razack weighs in on Venezuela's suspension of the gas accord with Trinidad and Tobago.
He says while the country still has oil and gas projects that remain promising, it is time for serious focus on diversification, and prudent and strategic fiscal management to ensure long-term sustainability.
00:00Energy expert Javid Razak warns that it is time for those in authority to explore alternative revenue streams to strengthen and develop the local economy.
00:12He was referencing the recent stoppage of oil and gas ties between Trinidad and Tobago and Venezuela, a move reflecting the shifting diplomatic dynamics in the region.
00:23Well, gas is our backbone. We have to continue pursuing as many projects in that field as possible. These sorts of volatility, these kind of geopolitical things that could change the course of how we make money as a country needs to be something that propels us into the diversification of Europe.
00:43If we don't seriously make that effort now, I don't know what else could cause us to do so.
00:50Razak tells the Morning Edition that anyone who has analysed the figures will recognise that it would require significant contributions from other industries to match the economic scale of oil and gas, adding that the country must focus not only on generating revenue, but also on improving efficiency and reducing barriers in the energy sector.
01:14We also need to spend wisely, right? And I think something that we don't always talk about, at least in terms of the energy sector, is that the ease of doing business in the country is not great, especially when it comes to ports, especially when it comes to government agencies and so on.
01:30We get significant to reduce the cost of doing business in that way without necessarily having more revenue, right?
01:38So, I would hope that all these things are serious government priorities right now.
01:44Razak says that while the Dragon gas deal is economically prudent and should be pursued in the future, it is not the only opportunity available to the country.
01:53It's still on the table, but it's not the only project in trading.
01:57I mean, you know, we've spoken about this one before, but there's a big deep water gas field in front of that already discovered since 2018, 2019, the one that Woodside now controls the Calypso field.
02:08And that project, I don't hear much about it for months now.
02:13Publicly, we haven't heard anything about the final investment decision on that.
02:17I hear that despite the progress in the background, there might be some change of operatorship and so on, but that's one within our waters.
02:26That's one that we should be fast-tracking to get into production as quickly as possible.
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