CARIBBEAN ENERGY INFORMATION SYSTEM (CEIS) DECEMBER 2012 ISSUE
300 million years to form all global oil reserves “Half the time to deplete it!!”
According to World Peak oil facts, "The world now consumes 85 million barrels of oil per day, or 40,000 gallons per second.” This is in comparison to 70.4 million barrels being produced daily with the expectation that crude oil reserves will last for the next 109 years – source: www.OPEC.org. This means that the rate of daily oil consumption is 21% more than production, bringing to the fore the fact that global oil reserves are being depleted at a faster rate. In addition, it is important to note that the world is not just running out of oil but, also its high quality, easily extractable oil is becoming more and more difficult to obtain. This means that oil
is at its peak. In a nutshell, peak oil is the moment when the maximum oil production rate, (which typically occurs after roughly half of the recoverable oil in an oil field has been produced), begins to decline. This is as a result of a peak in the production of easily accessible oil and gas.
consumption) with a rapidly growing demand. Although not a significant figure when compared to larger consumers, the Region’s reliance on imported crude oil and refined petroleum products is impacted by fluctuations in international prices for the continued on page 2/
The Caribbean by itself consumes approximately 171.5 Million CONTACT US barrels per year, equivalent to approximately 479,000 barrels Caribbean Energy Information System per day (0.6% of global oil Scientific Research Council
CARIBBEAN PETROLEUM UPDATE
To access CEIS website
Hope Gardens, Kingston 6, Jamaica 1-876-927-1779 (Telephone) 1-876-977-1840 (Fax) ceis@src-jamaica.org www.ceis-caribenergy.org
is a monthly Bulletin which highlights petroleum issues affecting or relevant to the Caribbean, international developments that may affect the region’s way of life and movements in oil prices and retail prices for fuel regionally.
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Call: 1-876-927-1779 | Caribbean Petroleum Update : December 2012
300 million years to form all global oil reserves “Half the time to deplete it!!” …………………….................................................... continued from page 1 precious commodity. As prices continue to rise and supply continues to decrease the impact on the Caribbean will result in altering lives in many fundamental ways. Over half the population in the Caribbean lives in and around the more developed/urban or metropolitan areas (coastline areas), and as a result over 15 million adults spend an average of an hour and a half a day in their cars during their commute to and from work. As gas prices continue to rise, travelling to work is becoming an increasingly costly endeavour. Any change in fuel prices, result in a change in the cost of almost everything else. This is due to the fact that much of the Caribbean’s economies are driven by imported energy. The price of food goes up when oil prices increase, as energy is needed for every activity including transportation, electricity generation, manufacturing and agriculture production. All areas of the Caribbean economies are affected when fuel prices increase, as energy is a fundamental necessity to spurring industries and producing goods. Giving what we already know about the inevitability of skyrocketing oil prices, as well as an increased demand for fossil fuels as the population continues to grow, the time to develop new forms of energy is now. Diverting more resources towards renewable energy is a must. And while there has been slow growth in the renewable energy sector, many policy makers are focusing their energy on trying to figure out the best way to extract the remaining fossil fuel
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that are still left, in the form of carbon fuels such as oil, methane hydrate crystals and shale reserves. Although it would be foolish not to consider how to use what remaining fossil fuels that still exist, we must also take into consideration the environmental toll that further extraction takes on the environment. What are some of the Caribbean’s options to Petroleum? Although the Caribbean Region will not be totally free from petroleum use, there are alternatives to petroleum in the form of renewable energy such as Bio-fuels, wind, solar, hydro, geothermal and waste (human and industrial). Driven by rising oil prices, regulatory pressures and global warming concerns, countries worldwide are quickly embracing petroleum alternatives in the form of ethanol and bio-diesel from Cooking oil, Human/ Animal waste, Tyres, Coffee grounds and various forms of renewable energy which can curb their dependence on imported oil with minimal infrastructure changes. The market for a petroleum substitute is proven and expanding rapidly as the demand for petroleum continues to increase and the supply diminishes. Cooking oil, the by-product of much of home and restaurant cooking can be converted into biodiesel, which is capable of powering any vehicle that takes diesel fuel. This includes trucks, buses and even some passenger cars. This is
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already being practiced in different parts of the world such as cities like San Francisco where free pick-up is offered to restaurants to collect their used cooking oil and produce biodiesel. In addition to limiting the need for petroleum-based diesel, restaurants that recycle oil will keep it out of their pipes, where it leads to clogs and damage to sewer infrastructure or pollution from dumping in the sea. The Caribbean private sector has made moves towards use of waste cooking oil as a means of energy generation. Some companies in countries such as Jamaica already have arrangements with fast foods restaurants such as Kentucky Fried Chicken (KFC), Juici, Burger King and other fast food restaurants to collect their used cooking oil for running diesel generators. This is being done with a view to offset the high cost of electricity they are paying – currently in the range of 35 – 45 US cents per kilowatt. A number of small manufacturing industries and farmers have also been installing bio-digesters that can manage human/animal waste. Bio-digesters produce methane gas that can be used for electricity generation and cooking. Other bi-products include high quality organic fertilizer. The use of bio-digesters, can aid in reducing consumption of chemical fertilizer, firewood and LPG. The Biogas cooking fuel displaces the need to buy propane and firewood, saving money and protects from the full impact of rising energy costs. There are also added
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Caribbean Petroleum Update : December 2012 | Call: 1-876-927-1779
environmental benefits associated with the use of bio-digesters - waste can be disposed of safely in environmentally friendly ways, reducing smells, flies, and the spread of disease. Additionally, Bio-digester effluent is a powerful organic fertilizer, reducing the need to purchase and apply chemical fertilizers, saving money and decreasing chemical runoffs. Recycling used tyres and other waste products can also be an alternative energy option. According to Ehow health, “Petroleum products account for approximately 22 percent of the materials used to make an average tyre. This equates to between 5 and 10 gallons of petroleum products, usually crude oil, natural gas or other hydrocarbons.” Moreover, since each tyre manufactured contains about 10 gallons of petroleum-based oil, producing fuel from tyres is not actually replacing petroleum. It takes a barrel of crude oil or 119.2 litres to make one tyre.
The United States number one means of disposing of used tyres is recycling. A very large percent of used tyres are wasted in the Caribbean due to ineffective resources for recycling. To capitalize, the Caribbean can seek to benchmark these practices as there is definitely a market for the used tyres for energy generation.
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in soybeans or rapeseeds. One bonus of this fuel is its flavourful aroma. The introduction of renewable energy such as Solar, Wind, Biomass, Hydro and Geothermal energy are alternative that are currently being explored in the Caribbean. However, there are barriers that are preventing the fast implementation of these alternative means of energy generation in the Caribbean. The three main barriers include the lack of adequate financing as the cost of equipment is relatively high and expensive to set up, technology still relatively new in some areas and the lack of resources in the form of technology and training along with policy and other underlining issues. These barriers continue to create a longstanding demean and a market for petroleum based products. As such, the Region will continue to have a very high dependence on the dwindling petroleum resources available.
Other option to offset dependence on petroleum could include Bio-fuel from Packing peanuts and Coffee grounds. Consumers may know these peanuts by the Dow brand name Styrofoam. These foam peanuts are a challenge to recycle. However, packing peanuts can be dissolved and turned into biodiesel. Similar to tyres, this fuel is taking existing petroleum in order to make an alternative fuel and is still in the testing phase. Coffee grounds have a valuable disposal use outside of the compost pile. They can be turned into biodiesel. Coffee grounds contain a fair amount of oil, equivalent to the amount of oil
Bio-diesel cartoon by Corvallis Biodiesel Coop
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Call: 1-876-927-1779 | Caribbean Petroleum Update : December 2012
PETROLEUM NEWS & HAPPENINGS ‘DRILLING CAN BE MADE CLEANER’ Pennsylvania, USA — In the Colorado mountains, a spike in air pollution has [...]...Read more DOUBLE UP, DOUBLE CHARGE! JPS bills councils separately for LED lamps Disconnects when payments aren’t made [...]...Read more RUBIS HITS SAINT LUCIA Micah G. George The make-over is eye catching, the general outlook is [...]...Read more
CABINET APPROVES POLICY TO CUT STREET LIGHT BILL [...]...Read more
JPS BEGINS WORK FOR MAGGOTY POWER PLANT The Jamaica Public Service Company, JPS, says preparatory work [...]...Read more
CURE CLAIMS ELECTRICITY COST CAN BE REDUCED
TRINIDAD AND TOBAGO AWARDS NEW OFFSHORE EXPLORATION LICENCES
The group Citizens United to Reduce Electricity (CURE) is claiming that the (JPS) is now in [...]...Read more
PORT OF SPAIN, Trinidad — The Ministry of Energy and Energy Affairs (MEEA) in [...]...Read more
CHECK HOUSE WIRING BEFORE PUTTING UP LIGHTS Homeowners are being advised to get a licenced electrician to check their house wiring before putting up decorative lights, [...]..Read more JAMAICAN EXPORTS NOT WORTH COST OF IMPORTED FUEL
FUEL THE POWER THAT DRIVES ECONOMY Maurice McNaughton, Contributor THE ECONOMIC significance of electricity to Jamaica‘s, and indeed any country’s [...]...Read more
Trade data unearthed through website www.diG Jamaica.com has revealed that the value of all the island’s exports [...]...Read more CASH-STRAPPED CUBA PRESSES DRIVE TO STRIKE BLACK GOLD Cuba will allow a Norwegian platform to being offshore drilling [...]...Read more
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Caribbean Petroleum Update : December 2012 | Call: 1-876-927-1779
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REGULAR UNLEADED GASOLINE AVERAGE PRICES AT THE PUMP December 2012 An analysis of retail prices for Regular Unleaded Gasoline in nine (9) selected Caribbean countries at the end of
December 2012 indicated that only St. Lucia had a price increase when compared to the previous month. Five countries (Bahamas, Barbados, Belize, Dominica and Jamaica) saw decreases in prices (ranging between 4.9% 5.7%). The remaining countries (Antigua/Barbuda, British Virgin Island and Trinidad and Tobago) saw prices remaining constant.
Regular Unleaded Gasoline Average Retail Price (US$/Litre) 2012 12 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Mths AVG
COUNTRIES
ANTIGUA/ BARBUDA 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23 1.23
1.23
1.23 1.23
1.23
BAHAMAS [91 OCT]
1.33 1.35 1.44 1.46 1.47 1.46 1.39 1.41 1.52
1.52
1.42 1.35
1.43
BARBADOS
1.55 1.59 1.66 1.72 1.77 1.78 1.70 1.70 1.70
1.73
1.76 1.66
1.69
BELIZE [87 OCT]
1.41 1.45 1.51 1.54 1.55 1.49 1.47 1.58 1.59
1.61
1.44 1.42
1.50
B.V.I [87 OCT]
1.26 1.27 1.29 1.29 1.29 1.29 1.24 1.19 1.19
1.23
1.19 1.19
1.24
DOMINICA
1.12 1.14 1.19 1.25 1.30 1.29 1.22 1.17 1.17
1.28
1.27 1.20
1.22
JAMAICA 87 Octane [E10]
1.27 1.30 1.32 1.37 1.32 1.26 1.26 1.31 1.33
1.29
1.15 1.09
1.27
ST. LUCIA
1.21 1.22 1.22 1.24 1.25 1.27 1.28 1.25 1.22
1.23
1.25 1.28
1.24
TRINIDAD/ TOBAGO [92 OCT]
0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42
0.42
0.42 0.42
0.42
NOTE: *US Gallon = 3.785 L *Imperial Gallon = 4.546 L *As at November 1, 2009 MTBE was phased out from all gasoline blends in Jamaica and replaced with 10% Ethanol.
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Call: 1-876-927-1779 | Caribbean Petroleum Update : December 2012
CHART OF RETAIL PUMP PRICES FOR DECEMBER 2012
Comparative Retail Pump Prices Regular Unleaded Gasoline DECEMBER Avg vs 12 Mths Avg (Jan - December 2012)
US$/Litre
1.80 1.60
DEC
1.40
12 Mth Avg
1.20 1.00 0.80 0.60 0.40 0.20 0.00
9 Caribbean Countries
See prices for all products at www.cippet.org .
Image source: http://www.polyp.org.uk
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Image source: http://blog.derestricted.com
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Caribbean Petroleum Update : December 2012 | Call: 1-876-927-1779
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C i t i g r o u p : S a u d i A r a b i a To S t o p Exporting Oil By 2030: The International Energy Agency has released its World Energy Outlook for 2010, forecasting for the first time that the global crude oil production peak that so many have long feared, has in fact already been reached-more than four years ago. -Reuters.com, November 18, 2010 Here’s something you probably won’t hear through many of the mainstream media outlets in the United States. Ambrose Evans-Pritchard wrote on The Telegraph (UK) website yesterday: If Citigroup is right, Saudi Arabia will cease to be an oil exporter by 2030, far sooner than previously thought. A 150-page report by Heidy Rehman on the Saudi petrochemical industry should be sober reading for those who think that shale oil and gas have solved our global energy crunch…
READ MORE AT http://survivalandprosperity.com
Source: http://www.kentonline.co.uk/kentonline/news/2011/april/19/nu-venture_supports_charter.aspx?theme=print
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Call: 1-876-927-1779 | Caribbean Petroleum Update : December 2012 Average Weekly & Monthly Crude Oil Prices (October ď §December 2012)
94.0
91.59
US$/BBL US$/BBL
92.0 90.0
87.34
88.7
88.0
87.34
86.0 84.0 82.0
Oct
Nov
Dec
Mth Avg
80.0
WK 1
WK 2
WK 3
WK 4
Period
Average Monthly World Crude Oil Prices (2009 - 2011) 109.61
108 98
US$/BBL
A Review of International Crude Oil prices over the last quarter of the year (October-December 2012), indicated an average price of US$87.7/BBL for the three months. Prices in December averaged at US$86.8/BBL, November (US$86.6/BBL) and October (US$88.8/BBL). Average price in December when compared to the average prices in November saw an increase of 0.25%. However when compared to the average price in October, a decrease of 2.23% was evident. The highest prices seen in November and December 2012 were the same at US$87.3/BBL (seen in the 3rd week of the month). The highest price for the 3 months period was recorded in October at US$91.59/BBL (seen in the 2nd week of the month).ď‚Ą
88.14
88 78
76.19
68
58 48
2009
2010
2011
38
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Jan
Feb Mar Apr May Jun
Jul
Aug Sep Oct Nov Dec
Period
Caribbean Energy Information System (CEIS) primary report of historical annual petroleum energy statistics provided for 18 Caribbean Countries. Included are data on total energy production, consumption, and trade; overviews of petroleum, natural gas, electricity, as well as financial and environmental indicators for over twenty years.
Yr Avg
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