Gareth Manning, Sunday Gleaner Reporter
IN ANOTHER three weeks, Jamaica's prospects for reducing its heavy dependence on imported oil will be known, as geologists complete their studies of offshore explorations.
Dr Raymond Wright, consultant and special projects manager at the Petroleum Corporation of Jamaica (PCJ), estimates that Jamaica may be sitting on as much as 2.5 to three trillion cubic feet of natural gas. This amount of gas could supply the country for hundreds of years.
"That's quite a bit of gas," Wright tells The Sunday Gleaner. "That's what we are hoping for and let us hope that hope is not audacious," he adds.
The exploratory team made its assumption by judging the size of reservoir rocks out at sea that hold oil or gas. This was done by conducting seismic tests using geo-physical technology anchored by a ship down to the sea floor. The equipment maps the sea's strata from below.
"Oil is usually found in dome-like structures and you can see these structures and know whether you should drill on them, but you don't actually know if there is any oil inside them," says Wright.
The PCJ is awaiting the findings of a study that will tell it just how much gas or oil is likely to be offshore in the blocks being currently explored.
If an economic quantum of natural gas is found, pipelines to bring it ashore could be in place by the earliest 2012.
"It's part of the long-term future and one has to manage those expectations," says Wright.
Natural gas is a more efficient form of energy than coal and it produces less toxic greenhouse gases. It is also cheaper.
"That's why Trinidad enjoys a particular circumstance. Whereas we are paying US 27 cents per kilowatt hour, Trinidadians are paying four cents, and that is why industry has moved from Jamaica to Trinidad," Wright comments.
However, these possible sources of energy have not yet been included in Jamaica's energy matrix because the discovery is yet to be made.
real situation
"It might be putting a dream into a real situation. So, you wait until you wake up with the facts," says a cautious Wright. "But what we have to do, importantly, is to begin to plan." This is to ensure that the economy benefits from optimal management of the resources.
A total of 20 offshore blocks are currently being explored for oil and gas by three non-Jamaican companies on behalf of the Government. Two new blocks have been identified to the northeast and southeast of Morant Point, respectively, for exploration.
Jamaica has a production-sharing arrangement with all three companies. The contractors put up funds for the exploration and if oil or gas is found, it splits it with Jamaica and recovers the cost for exploration. The profit is then split at a percentage ratio of 70:30 in favour of the contractor. However, in addition to its 30 per cent share, Government would also receive 12.5 per cent royalty, which narrows the ratio to about 58:42.
One of the companies, Finder Exploration from Australia, is expected to start drilling a well by the fourth quarter of 2009.
