Trinidad and Tobago

Trinidad and Tobago is a twin-island republic located in the southern Caribbean approximately seven miles off the coast of Venezuela. Trinidad, the larger of the two islands, is situated at Latitude 10 ½ degrees N, Longitude 61 ½ degrees W and occupies a total area of 3,000 sq. mi. Tobago, the smaller of the two islands, is located at Latitude 11 degrees N, Longitude 60 degrees W and occupies a total area of 186 sq. mi.

The islands of Trinidad and Tobago were discovered by Christopher Columbus in 1498. Trinidad became a British colony in 1802 and was enjoined administratively to Tobago in 1889. Trinidad and Tobago achieved independence from Britain in 1962 and became a republic in 1976. Trinidad and Tobago follows the Westminster system of government and has two major political parties—the People's National Movement (PNM) and the United National Congress (UNC). With the exception of the 1986–91 and 1995–2001 periods, the country has been ruled by the PNM. English is the official language of Trinidad and Tobago and the country has a population of 1.3 million. The population is comprised of 40 percent people of African descent and 40 percent of Indian descent. The remaining 20 percent of the population is made up of people of European, Chinese, or Middle Eastern ancestry.

In 2006, the per capita gross domestic product (GDP) of Trinidad and Tobago stood at approximately $17,000. This was up from roughly $10,000 in 2001. The economy grew at a rate of 12 percent in 2006, up from just over 4 percent in 2001. Over the period 2002–06, the economy has averaged growth in the region of 9.7 percent. Growth of the Trinidad and Tobago economy is driven largely by the energy sector. In 2006, the petroleum industry accounted for some 47 percent of the country's total GDP with the exploration and production subsector being the major contributor. The energy sector is focused on the production of natural gas and related downstream activities.

The country is a major exporter of ammonia, methanol, and direct reduced iron, and is the number one exporter of liquidized natural gas (LNG) in the Western Hemisphere. This export composition represents a fundamental shift in the energy sector, which has traditionally focused on oil production. The government of Trinidad and Tobago (GOTT) collected revenues in excess of $69 billion from the energy sector over the six-year period ending fiscal 2007. It should be noted, however, that the Ryder Scott Hydrocarbon audit report indicates that Trinidad and Tobago's proven natural gas reserves are at 17.05 trillion cubic feet (tcf); probable reserves are at 6.23 tcf; and possible reserves are at 7.76 tcf. This report suggests that the country's natural gas reserves would be depleted in 12 years, assuming no further successful exploration and current levels of utilization.

GOTT's energy policy calls for continued diversification of the energy sector and the promotion of downstream industries that strengthen linkages with the rest of the economy. In this regard, GOTT's budget for fiscal 2007 prioritized a number of major gas-based projects which included the

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