Before World War II and before Iran and Nigeria got going with oil production, Trinidad and Tobago produced nearly half of the oil in the whole of the British empire.
By the 1970s, the newly independent republic was producing nearly 280,000 barrels a day. For a geographically tiny country of just over a million people, after the collapse of sugar and cocoa, oil was a huge deal. It built highways, schools, hospitals, and created a middle class.
But them days are gone. Today, the twin isles’ oil production has dropped to under 54,000 barrels a day, and gas reserves may only last another decade.
The country’s only refinery was shut in 2018 after years of decline. Energy revenues have nearly halved in the past year, while government debt climbs and unemployment rises. For a country that has long lived off one resource, the cracks are showing.
Economists call this “Dutch disease” – a dependence on a single sector that leaves little space for anything else.
Trinidad and Tobago set up a Heritage and Stabilisation Fund in 2007–a kind of National Wealth Fund–to invest oil surplus profits for the future, but it never became the powerhouse it was meant to be. Now the country faces low growth and growing fiscal strain.
The government’s answer has been twofold. On one hand, it has signed a new deal with ExxonMobil to explore ultra-deepwater blocks off the east coast. If oil is found, investment could top $21bn. Energy Minister Roodal Moonilal insists natural gas is still central to the nation’s future and points to new finds near Tobago as reasons for optimism.
On the other hand, there are plans for a green shift – a hydrogen strategy that aims to use renewable energy to split water and produce 4m tonnes of green hydrogen a year by 2065, plus 57GW of offshore wind and major solar projects like the Brechin Castle farm.
But experts say these plans remain at a very early stage, far from delivering the jobs and income the country needs.
Environmentalists warn that clinging to fossil fuels will deepen the risks. Trinidad and Tobago already has one of the world’s highest per capita carbon footprints. Oil spills, gas flaring, and waste have harmed ecosystems and fishing communities.
The climate crisis is hitting the Caribbean hard, costing countries an average of 2% of GDP annually. For many, the urgency is not just environmental but economic, social, and generational.
Campaigners argue the country needs a new model built on renewables, agriculture, creative industries, and community tourism.
Economists add that food production, shipping, ship repair, and finance could all play a role. Trinidad and Tobago has a skilled workforce and infrastructure that many neighbors lack – but it needs bold action now to build a future beyond oil.
The choice is stark: drill deeper into risky deepwater projects, or redirect the nation’s wealth and talent into something more sustainable. As one economist put it, Trinidad and Tobago is “living a defining moment.”
Source: The Guardian.
