T&T has capacity to deal with global energy and food issues

Thu Oct 27 2022

Minister Stuart Young presents at the 24th Ministerial Meeting of the GECF (Gas Exporting Countries Forum)   in Cairo, Egypt.

“Natural gas must continue to play a role in energy and food security which are top priorities globally. There is a need for LNG and gas produced products such as fertilisers and ammonia in particular, and its byproducts. We are also conscious of the negative effects of climate change in particular on small island states and other Caricom islands, as well as in countries on the African continent, as we all feel the ill effects of climate change.”

So said Minister of Energy and Energy Industries and Minister in the Office of the Prime Minister, Stuart R Young he addressed the GECF Ministerial Meeting Cairo, Egypt on Tuesday.

“It is up to us as GECF members to responsibly carry the narrative globally, especially with COP 27 approaching, as to how we can use technology and responsibly continue to develop the natural resources we all have of natural gas and to recognise the need globally to get the balance correct,” Young said.

Young and Permanent Secretary of the Ministry of Energy and Energy Industries, Penelope Bradshaw-Niles, who attended as the chairman of the GECF’s Executive Board along with a delegation from T&T, attended the 24th GECF Ministerial meeting.

During his presentation Minister Young extended greetings on behalf of T&T and thanked the GECF for the hospitality both him and his delegation received and commended the GECF Secretariat on their continuing efforts and policy support.

Minister Young highlighted two important points in particular. The first he said was the need for the GECF to stand with, and to responsibly advocate for the proper development of natural gas resources on the continent of Africa in a responsible manner and to assist African countries to develop their hydrocarbon resources. He said that African countries with hydrocarbon resources must not be left behind.

The second point he said is that T&T has immediate available capacity in both LNG and Petrochemical products like ammonia and fertilisers which are needed by the world as we face a global crisis in energy and food security.

Young indicated that T&T is prepared to develop neighbouring proven gas reserves so as to assist with energy security in Caricom, Latin America and others countries and that T&T will continue to develop its hydrocarbon resources in a responsible manner whilst also developing cleaner energy.

 

 

Young at Cairo gas export forum: Energy, food security ‘top priorities’

NARISSA FRASER

Energy Minister Stuart Young has said natural gas must continue to play a role in energy and food security, “which are top priorities globally.”  He was speaking at the 24th ministerial meeting of the Gas Exporting Countries Forum (GECF) in Cairo, Egypt on Tuesday.

He said LNG and gas-produced products like fertiliser and ammonia are needed. But he added that his ministry is “conscious of the negative effects of climate change, in particular, on small island states and other Caricom islands, as well as in countries on the African continent, as we all feel the ill effects of climate change.

“It is up to us as GECF members to responsibly carry the narrative globally, especially with COP 27 approaching, as to how we can use technology and responsibly continue to develop the natural resources we all have of natural gas and to recognise the need globally to get the balance correct.”

In a press release, the ministry said Young focused on the need for the GECF to stand with and responsibly advocate for the proper development of natural gas resources in Africa “in a responsible manner and to assist African countries to develop their hydrocarbon resources.”

He said that African countries with hydrocarbon resources must not be left behind.

Young also said Trinidad and Tobago is prepared to develop neighbouring-proven gas reserves so as to assist with energy security in Caricom, Latin America and other countries and that TT “will continue to develop its hydrocarbon resources in a responsible manner whilst also developing cleaner energy.”

Shell plc

Shell is ready to ‘embrace’ higher taxes as third-quarter profits double. The Energy group will raise the dividend and buy back a further $4bn of shares as the oil division helps deliver bumper earnings.

Shell’s performance continues a record year for the company Shell chief executive Ben van Beurden signalled the oil and gas group was ready to pay higher taxes as its announcement of $9.5bn in third-quarter profits prompted renewed calls for additional levies on energy companies. The profits are only surpassed in the company’s history by the previous quarter’s $11.5bn, leaving Europe’s largest energy major on course to smash its annual profit record of $31bn set in 2008.

Shell has already reported earnings of more than $30bn in the first nine months of the year. Yet the company paid no tax in the UK after investments and decommissioning costs in the North Sea exceeded all Shell’s profits from its British upstream and retail businesses in the third quarter.

Van Beurden said it was a “societal reality” that governments would be looking to companies such as Shell, which benefited from soaring oil and gas prices, to help offset energy costs for struggling consumers.

“We should be prepared and accept that also our industry will be looked at for raising taxes in order to fund the transfers to those who need it most in these very difficult times. We have to embrace it.”

The UK government in May introduced an additional 25 per cent energy profits levy on oil and gas producers in the North Sea to help raise funds but Shell does not expect to pay any taxes under the energy profits levy until early next year. Ed Miliband, the shadow secretary of state for climate change and net zero, said Shell’s global profits of $9.5bn were “further proof that we need to make the energy companies pay their fair share”.

Shell’s performance beat the average analyst estimate of $9bn and was more than double the $4.1bn it recorded a year ago. The UK-listed group said it expected to increase its dividend for the fourth quarter by 15 per cent, with the payment to be made in March 2023, subject to board approval. Shell will also buy back a further $4bn of shares in the fourth quarter, bringing total share purchases for the year to $18.5bn. Shell shares rose 5 per cent.

Oil prices fell from over $120 a barrel in June to about $90 a barrel as recession fears in Europe hit economic activity, while gas prices have softened from record levels earlier in the year. Despite lower average crude prices, Shell benefited from a strong operational performance from its deepwater oil assets, particularly in the US Gulf of Mexico, resulting in the recovery of significant “high-value barrels. Best production we’ve seen in a decade,” said chief financial officer Sinead Gorman after publication of the results.

“Gulf of Mexico is doing fabulously.” That helped push profits in the division to $5.9bn, up from $4.9bn in the three months to the end of June. In contrast, earnings of $2.3bn in Shell’s integrated gas business, which includes liquefied natural gas trading, were down about 40 per cent from June due to lower production levels and lower seasonal demand.

“Although integrated gas performance was particularly poor this quarter, Shell’s upstream division performed particularly strongly,” said Biraj Borkhataria at RBC Capital Markets. The 15 per cent increase in Shell’s fourth-quarter dividend was “well above” RBC’s own forecast and likely to be “well-received by investors.”

Gorman said Shell’s integrated gas results were often weaker in the third quarter than other quarters, adding that revenues had been pushed down further by the decision to divest its stake in the Sakhalin-2 liquefied natural gas project in eastern Russia. Trading results for power and piped gas, however, which Shell reports under its renewables and energy solutions division, were “very strong”, pushing earnings for that business up to $700mn from $400mn last quarter.

Shell profit drops to $9.45 billion

October 27, 2022

Shell to boost dividend by 15%
Announces plans to buy further $4 billion in shares
Profit hit by weak LNG trading and refining

Oct 27 (Reuters) – Shell posted a third-quarter profit of $9.45 billion, slightly below the second quarter’s record high, due to weaker refining and gas trading, and said it will sharply boost its dividend by the end of 2022 when its CEO departs.

As UK patriots welcome the brilliant PM, his premiership begins with rescuing the economy with windfall taxes on profits of energy companies. BP and Shell can use their profits to invest in Guyana, where operator Exxonmobil discovered 40 major deepwater oilfields in 7 years. The government of the booming Commonwealth petrostate of 800,000 citizens is pursuing democracy and development while conserving a rich rainforest.

Shell and BP can now afford to acquire the assets of CNOOC, the PRC state oil company. with a 25% share of the prolific petroliferous Stabroek Block in the Atlantic Ocean and use natural gas from Guyana to supply their Atlantic LNG plant as output declines in Trinidad.
Shell and BP can thus guarantee energy security for Europe for another century.

 

ExxonMobil completes Russia exit

ExxonMobil (NYSE:XOM) has completed its exit from Russia, calling the departure an “expropriation” of its main Russian operation and potentially setting up a future legal challenge.

Regional Development model

José Manuel Salazar-Xirinachs is Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC)

Latin American and Caribbean countries are facing the effects of a series of shocks including the global financial crisis, economic tensions between major poles of the global economy, the covid19 pandemic, the war in Ukraine and the resurgence of inflation, in a context in which the environmental emergency is worsening and the technological revolution is accelerating. Investment and production conditions have deteriorated.

Numerous analysts and international organisations talk about a series of cascading crises, citing among them the crises related to the climate, health, employment, social matters, education, food security, energy and the cost of living – all of which have impacts of varying intensity and characteristics on numerous countries, including those in the region

The fight against inflation toughened global financial conditions and increased volatility in financial markets and risk aversion. This raised the cost of debt service, further reducing fiscal space and increasing the risk of a recession in the global economy in 2023. The growth rates estimated for the vast majority of the world’s countries in 2023 have been revised downward recently by various organisations.

In the region, the combination of external and domestic factors stemming from the policy decisions made, or from the absence of such decisions, reduced the capacity for economic growth and quality job creation and hampered its fight against poverty . Its economic and social structures have weakened and have fallen into situations that reinforce the inertia of a weak economic performance.

Faced with this reality, ECLAC advocates for Latin America/Caribbean to redouble its efforts to both reactivate its economies as well as to transform countries’ development models, centering these efforts around policies for productive transformation and diversification, along with a big public and private investment push. This would allow for accelerating structural change and technological and digital transformation to achieve high, sustained growth and sustainable and inclusive development.

In that strategy, the sectoral dimension is crucial, because that is where company strategies, business models and processes of capital formation and job creation are defined. Although the specific sectors should be defined in each national context, ECLAC proposes ten sectors or areas that are particularly promising:

1. the energy transition,
2. electromobility,
3. the circular economy,
4. the bioeconomy,
5. the healthcare-manufacturing industry and
6. the digital transformation – which are at the centre of innovation processes –
7. while the care economy,
8. tourism,
9. micro, small and medium-sized enterprises, and
10. the social economy are great generators of employment, with the ensuing effects on income and the inclusion of disadvantaged social sectors.

Harnessing the potential in these areas entails transforming the region’s development model to create favourable conditions for investment, growth, inclusion and sustainability.

Transformation of this model requires decisive action in multiple areas:

1. development planning in order to co-ordinate policies;
2. improvement in governance and the institutional quality of the institutions in charge of the different areas;
3. macroeconomic policies to accelerate growth and tackle inflation;
4. the construction of welfare states;
5. strengthening care systems as a pillar of a rights-based social state;
6. guaranteeing the rights of especially vulnerable populations;
7. mitigation and adaptation vis-à-vis the environmental emergency;
8. new governance of natural resources;
9. implementation of industrial and technological policies;
10. and regional integration in the face of the new geopolitics of globalisation.

This is an ambitious agenda, but the reality is that this is not a time for gradual or tepid changes – ambitious and transformational changes are needed. Only by boosting the level of ambition can we respond to this quantity of simultaneous challenges and shocks, and to the complexity of our region’s economies and societies.

In order to articulate the proposed strategies and policies, and to ensure their effective implementation and adjustments to new realities over time, new forms of experimentalist governance are needed, based on iterative and participatory processes for policy formulation and implementation.

In some cases, new fiscal, productive, social and environmental compacts will be necessary to surmount the problems of this current juncture and move in the long term towards societies that are sustainable, cohesive and resilient – characteristics that entail advancing towards the realisation of welfare states in the framework of more efficient and productive economies.

At this time of action for overcoming limitations and harnessing opportunities, ECLAC will present the analyses and proposals summarised in these lines at its most important biennial meeting: the 39th session, which will take place October 24-26 in Buenos Aires, Argentina, with the participation of senior authorities from throughout our region.

“We, (ECLAC) invite all those who are committed to working for the progress of Latin America and the Caribbean to participate in the debates.”

Equinor play for CNOOC’s UK assets

Norway’s Equinor is reportedly considering the purchase of UK oil assets held by Chinese state-backed operator CNOOC International

Equinor eyeing purchase of offshore UK assets

Norwegian company considering buying North Sea portfolio from Chinese operator

17 October 2022 Upstream staff

Norway’s Equinor is one of at least two companies considering buying the Chinese offshore oil and gas operator CNOOC Ltd’s UK portfolio — a deal that could be worth at least Nkr20 billion ($1.87 billion), Norwegian financial newspaper Dagens Naeringsliv (DN) reported

The transaction would be among the largest in years on the UK continental shelf, DN stated, citing sources at Equinor and in London’s financial sector about the discussions. The aim is to finalise a deal before the new year

 

Climate fund for vulnerable states

October 17, 2022

At the Food and Agriculture Organisation’s (FAO) Hand-in-Hand Investment Forum, President Dr Mohamed Irfaan Ali propose a special adaptation fund for Small Island Developing States (SIDs) and low-lying coastal states, to meet their peculiar needs relating to climate financing and address their vulnerabilities.

SIDs and low-lying coastal states have peculiar and special needs, especially about climate financing and the interlocking food security challenges. SIDs and the low-lying coastal states need climate adaptation financing on soft terms, more grants, concessionary interest rates, and long-term repayment periods.

“It is my hope, therefore, that the FAO can conceptualise and facilitate the establishment of a special adaptation fund for SIDs and low-lying coastal states, disburse based on vulnerability index on traditional measures relating to the gross domestic product,” President Ali stated in his virtual address.

The Guyanese leader also called for a Climate Vulnerability Fund to help SIDs and low-lying coastal states to boost their food security.

“Climate Change is too critically interlinked with food production, climate change is too critically interlinked with the sustainability of the food production system and agriculture as a whole.”

SIDs and the low-lying coastal states, face particular challenges to their food security, especially with their small land resources, remoteness to larger markets, susceptibility to external shocks, and vulnerability to climate risks such as flooding, and other natural disasters.

“Extreme weather events including droughts and floods disrupt food systems and cause destruction to crops and agricultural infrastructure, critical resources needed to support production often have to be diverted to climate adaptation. In the face of these challenges, financing for food security, therefore cannot be delinked from climate financing.”

Regarding climate financing in SIDs, close to half of the limited bilateral finance provided was through loans.

Given the scale of climate financing needs and common trends, it is anticipated that the large-scale transfers to match those needs will continue to be raised through debt rather than grants. This trend is concerning, particularly for SIDs in CARICOM, given the worsening debt situation that many face, compounded by COVID-19, global inflation, rising fuel prices and the Ukraine war, ‘crowding out’ climate finance-related issues.

Investments, therefore, will help SIDs reduce vulnerabilities and diversify production, expand and modernise agriculture, and foster climate-smart innovations and climate-resilient agriculture.

“Investment is needed to transition production higher up the value chain, through food processing, investment is needed in developing human resources, particularly in making agriculture more attractive to young people. SIDs and low-lying coastal states require a substantial injection of resources for climate adaptation to ensure a more resilient sector, without this investment, food security will remain imperilled in SIDs and the low-lying coastal states.”

The president welcomed the Hand- in- Hand initiative, an important platform to help countries source and attract resources for greater food security and the timing is favourable as the world faces ‘one of its gravest food crises.’

Food Security: EU contributes €100 million to IMF

October 14, 2022,  Washington, DC:

The EU signed a €100 million grant agreement (about US$97.2 million) for the International Monetary Fund’s (IMF) Poverty Reduction and Growth Trust (PRGT). These funds will allow the IMF to make about €630 million worth of zero interest loans for PRGT-eligible African, Caribbean and Pacific countries (ACP) facing balance of payments difficulties.

Access to affordable finance is key to help these countries address the economic and food crisis worsened by invasion of Ukraine. The EU’s contribution is part of Team Europe’s response to the crisis as it complements pledges by EU Member States to channel Special Drawing Rights (SDR) to the IMF’s Trusts for on-lending and their grants to the IMF’s PRGT Subsidy Account. Team Europe has so far pledged to channel SDRs contributions equivalent to about $23 billion.

Commissioner for International Partnerships, Jutta Urpilainen, said: “ Russia’s war of aggression against Ukraine has made many African, Caribbean and Pacific countries more vulnerable at a time when they were still struggling with the consequences of the COVID-19 pandemic, and millions of people are pushed into poverty and hunger. With our contribution to the IMF’s Poverty Reduction and Growth Trust, we want to help them address this crisis and avoid further deepening of inequalities. Today’s signature also marks our commitment as Team Europe to multilateral solutions to tackle today’s most pressing challenges. Our partnership with the IMF is of key relevance in this regard.”

Commissioner for Economy Paolo Gentiloni, said: “The economic shockwaves from Russia’s war against Ukraine are hitting low-income countries hardest, spurring demand for concessional loans from the IMF’s Poverty Reduction and Growth Trust . It is essential that we maximise the resources available for this key financing tool. With today’s €100 million contribution, the Commission is playing its part and complementing the on-lending of EU Member States’ Special Drawing Rights. These efforts bring us closer to the G20 global ambition of $100 billion of voluntary contributions to vulnerable countries, a target we must strive collectively to achieve.”

Managing Director of the IMF, Kristalina Georgieva said: “ I am very grateful to the EU and its Member States for their continued support to low-income countries facing crisis after crisis. Its grant contribution today of €100 million will help to subsidize PRGT loans and support our provision of zero-interest lending to our most vulnerable members. I urge other countries to also contribute to the PRGT so we can support our members during these difficult times .”

Access to concessional/zero-interest loans provides affordable finance that increases liquidity and available budgetary resources in countries facing balance of payments difficulties, helping them to achieve, maintain, or restore a stable and sustainable macroeconomic and fiscal position. It also prevents depletion of international reserves, supports the import of essential goods and putting in place adequate social protection schemes for the most vulnerable. Concessional support through the PRGT is interest-free, with maturities up to 10 years.

Background

This announcement is part of the broader €600 million package already announced from the reserves under the 10th and 11th European Development Funds to address the current food security crisis in ACP countries further aggravated by Russia’s invasion of Ukraine. The package has three components that are complementary and mutually reinforcing, supporting: food production and resilience of food systems (€350 million), humanitarian assistance (€150 million) and macro-economic support through the IMF’s PRGT (€100 million). With the additional €600 million, the EU expects to allocate for food security and food systems programmes in partner countries €7.7 billion until 2024 worldwide.

The IMF provides broad support to low-income countries through surveillance and capacity-building activities, as well as concessional financial support to help them achieve, maintain, or restore a stable and sustainable macroeconomic position consistent with strong and durable poverty reduction and growth.

Factsheet (link)- IMF Support for Low-Income Countries

IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: WAFA AMR

PHONE: +1 202 623-7100EMAIL: MEDIA@IMF.ORG

@IMFSpokesperson

HIGH REVENUE EXPECTATIONS FROM AGRICULTURE PRODUCTION IN THE CARIBBEAN

Oct 18 2022
CEDA

Ralph Birkhoff, a senior official of a US-based specialised advisory firm that focuses on high quality, asset-based energy investments in the United States and the Caribbean, said the Caribbean Investment Forum (CIF), scheduled to be held  next month, provides an opportunity for investors to explore the extraordinary opportunities in the Caribbean region.
Birkhoff, of Alquimi Renewables LLC, said that the region is ripe for investment in sustainable development, particularly climate-resilient protected agriculture and integrated renewable energy systems.

The CIF will be held in Port-of-Spain from November 8-11. It is being organised by the Barbados-based Caribbean Export Development Agency, in collaboration with the T&T government, the Caribbean Community (Caricom), the European Union, the Caribbean Development Bank, and the Caribbean Association of Investment Promotion Agencies .

The forum will provide potential investors with information and direct access to leaders throughout the region who are creating the innovative solutions the region needs and that savvy investors can benefit from financially.

“After having lived in the region for over a decade, and being from Canada, I realised that many of these fresh produce categories have to be imported as there is not the agricultural infrastructure here to service the local demand with the types of fresh, healthy, delicious produce we’re accustomed to in more developed markets,” Birkhoff said.

He said his company is collaborating with local, regional, and international investment interests in the successful implementation and expansion of Greenhouse Farm Projects under the two brands. Island Growers Caribbean and Berry Cove Organic Farms, T&T’s first commercially scaled climate-smart hydroponic greenhouse farm.

Alquimi and their investor partners are adding to food security in T&T, Antigua and Barbuda, and Barbados, with plans to expand in 2023 to Guyana, St Lucia, Jamaica, and the Bahamas.

He said Alquimi, like many entrepreneurial companies building solutions for the Caribbean, notes that the toughest part of the development process of this new greenhouse technology, was getting investors to understand that this is uncharted territory in this region.

“For instance we were the first applicant ever to receive permission to import live berry plant stock from Europe into Trinidad. Being transparent with investors is important. Everything we’re doing is quite new to the region. We’re introducing new technologies and engineering solutions at every turn because of the region’s unique weather and climate conditions.

“While these same technologies can be expanded to areas that are less prone to threatening tropical storms, they still need to be engineered for the most extreme local environments. We never know when a Category 5 storm is going to take aim at our facilities – only that someday they will.”

Birkhoff, who will be among the speakers at the CIF, said the revenue expectations from expanded agricultural production for this region are impressive.

“Providing this region with additional food security and helping to develop renewable energy solutions the region needs for the next century, are not only key to the region’s development, but are outstanding opportunities for investors to realize a solid return while making a lasting difference for the people.” CMC

UWI has all the ICTA expertise for cultivation of local berries – guava, cerise- and other tropical icons- soursop, mango, sapodilla, banana, citrus and papaya. Nuts- coconut, cashew, chestnut- and other staples- avocado, watermelon, pineapple and pomerac- abound in the fertile soils. Fresh vegetables include lettuce, cucumber, watercress, tomato, aubergine spinach, saijan, pumpkin, gourds and okra. Sesame seeds, pomegranates and sweet potatoes all flourish in the warm climate. Official neglect of farmers with a paltry budget, larceny and other crimes, ramshackle infrastructure all stymie food output.