APRIL 2016

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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : APRIL 2016

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CARIBBEAN Petroleum Update A Publication of the Caribbean Energy Information System (CEIS)

April 2016 ISSUE

The Global Adhesive:

TheVersatility of Black Goo/Bitumen The first thing that comes to mind when you think of the term bitumen is roads. However, bitumen is vital to all kinds of construction and infrastructure projects, large and small. Without bitumen our world would be a very different place; our lives would be less mobile and less connected. This valuable material has countless uses and applications. Bitumen is a crucial component of the asphalt that is used in roadways, construction and also in industrial applications. Bitumen is not only flexible and multi-functional; it has a number of other benefits as well. It is fast to install and safe to use, as well as being durable and hard-wearing. It is easy to maintain and 100% recyclable, making it the perfect choice for forward-thinking construction and infrastructure projects. In this issue of

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the Petroleum Update we will explore the versatility of this super product? Otherwise known as “asphaltum or tar” bitumen is the thickest form of petroleum there is, made up of 83% carbon, 10% hydrogen and lesser amounts of oxygen, nitrogen, sulphur, and other elements. This means that it is a naturally-occurring organic byproduct of decomposed organic materials. It is also waterproof, and this remarkable natural stuff has been used by humans for a wide variety of tasks and tools for generations. Bitumen is a black or dark-colored (solid, semi-solid, viscous), amorphous, cementitious material that can be found in different forms, such as continued on page 2/

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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : APRIL 2016

The Global Adhesive: The Versatility of Black Goo/Bitumen rock asphalt, natural bitumen, tar and bitumen derived from oil, which is referred to as petroleum bitumen. Petroleum bitumen is typically referred to as bitumen or asphalt, however depending on the region it might be referred to as something else. In Europe for instance bitumen means the liquid binder while in North America the liquid binder is referred to as asphalt, or asphalt cement. Bitumen is also referred to as “black goo” and occurs in nature in both hard and soft forms. The harder form is found in rock asphalt while the softer, more viscous material is present in tar sands and asphalt ‘lakes’. Bitumen is also obtained through the distillation process of crude oil.

Earlier Uses of Black Goo According to historical records “black goo” has been around for the past 40,000 years and has been used by humans for a wide variety of tasks and tools. The earliest known use of bitumen was by Middle Paleolithic Neanderthals who used it to fasten wooden handles to sharp edged stone tools. These were found at sites such as Gura Cheii Cave (Romania) and Hummal and Umm El Tlel in Syria. In Mesopotamia, during the late Uruk and Chalcolithic periods at sites such as Hacinebi Tepe in Syria, bitumen was used for construction of buildings and water-proofing of reed boats. The earliest reed boat discovered to date was coated with bitumen, at the site of H3 at As-Sabiyah in Kuwait, dated about 5000 BC; its bitumen was found to have come from Ubaid Mesopotamia. Other uses of bitumen during this era include its use as a sealant or adhesive, as building mortar, as incense, and as decorative application on pots, buildings or human skin. The material was also useful in waterproofing canoes and other water transport, and in the mummification process toward the end of the New Kingdom of ancient Egypt. In California’s Channel Islands, indigenous groups such as the Chumash used bitumen as body paint during curing, mourning and burial ceremonies. They also used it to attach shell beads onto objects such as mortars and pestles and steatite pipes; they used it for hafting projectile points to shafts and fishhooks to

cordage. Asphaltum was also used for waterproofing basketry and lining sea-going canoes.

Processing/Extraction Method The indigenous extraction of the material was much more simple than that of industralized economies. Heat would be applied to the material until the substance condenses the gases within and liquefies after which minerals are added to enhance its consistency. Minerals such as ochre (mineral that consists of silica and clay) that makes it thicker. Also, grasses and other vegetable matter adds stability; waxy/oily elements such as pine resin or beeswax make it more viscous. On the other hand, in the more industrialized environment bitumen extraction requires several different processes by refining crude oil. The crude oil is first pumped from storage tanks and channeled through a heat exchanger system. It is then further heated in a furnace to typically 370° C or above where it is partly vaporized into an Atmospheric Distillation Column or Fractionating Tower. Here the physical separation of the components occurs. Please refer to Figure 1 on next page. The lighter components rise to the top and the heaviest components fall to the bottom of the column. Finally, bitumen is obtained by vacuum distillation. An alternative method of bitumen extraction is by propane or butane-solvent deasphalting. The grade of the bitumen depends on the amount of volatile material that remains in the product: the smaller the amount of volatiles, the harder the residual bitumen.

The Application of Bitumen Even if we are not aware of its many uses in our modern world, this organic, versatile and recyclable material serves as a critical material in some everyday processes. Bitumen is applied on road paving because it is viscous when hot, but solid once it cools down. Bitumen plays an important role in many everyday applications above and beyond asphalt streets and roofing. It is also heavily utilized in many industries. However, due to its adhesive and cohesive capabilities, it is mostly utilized in the construction industry. We will explore three main areas of


CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : APRIL 2016

utilization; mobility (roads), building construction and industry. Asphalt is derived from bitumen and is used in the construction of most of our roadways and streets. Asphalt roads are more flexible to build and easier to maintain than roads using any other material. They are more cost-effective in both construction and maintenance and help reduce noise pollution as well as they can be easily removed and resurfaced almost immediately. What is also important to note is that asphalt is not just used in road surfaces: it is also a vital component of the substructure of the road. Additionally, the correct surface is of vital importance in civil engineering projects such as bridges, tunnels and even airstrips at airports. Bitumen products are everywhere in modern buildings, in roofs and floors, ceilings and walls, both to protect the structural elements and to keep moisture out. Traditionally used to weatherproof low slope roofs, bituminous membranes are finding new uses in the movement towards carbonneutral buildings. These membranes can be used to support roof gardens or eco-roofing, in both commercial and residential developments. Asphalt can be used to waterproof dams, reservoirs, landfill sites and flood

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protection basins. Modern farms rely on bitumen and products using refined bitumen for a number of vital applications. Bitumen paving provides flooring in barns, barnyards and feed platforms while tanks, vats and other concrete structures can be waterproofed with a bitumen solution. It’s in a variety of grease and lubricant products for different applications. It is in corrosion-resistant paints and printing inks. It is used to waterproof swimming pools and in numerous applications in event locations, from a huge stadium to a local playground. It’s in the rubberized surface of running tracks, tennis courts and other sports surfaces. Other uses of bitumen include: • Disinfectants • Insulating fabrics, • Shingles • Electrical insulating compounds, papers, tapes, wire coatings • Embankment protection gutters, structures

Figure 1 : Extraction Process of Bitumen

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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : APRIL 2016

• Highways, • Newspaper Ink Production • And many other applications In the Caribbean region, Trinidad and Tobago has the world’s largest deposit of bitumen called the Pitch Lake. This lake is located in southwest Trinidad in the village of La Brea measuring approximately one hundred acres (41 hectares), and is estimated to be 76 meters deep in the center. The liquid asphalt is black and viscous, but the surface is semisolid, and can be walked on. The asphalt is so soft in some areas that an individual can slowly sink if he or she stands on the surface too long. In some places one can put a stick through the asphalt and remove liquid tar. Although the lake appears quiescent the asphalt still moves with a natural slow “stirring” action. The lake was created thousands of years ago by the process of subduction, when the Caribbean continental plate was forced under another plate. This opened fault

lines that allowed oil from deep underground deposits to rise to the surface, where it collected in a volcanic crater. The air caused lighter elements of the oil to evaporate, leaving behind the heavy asphalt, a mix of oil, clay and water.

Conclusion This organic, versatile and recyclable material is never far away in the modern world – even if we don’t see it. Bitumen plays an important role in many everyday applications above and beyond asphalt streets and roofing. Bitumen’s waterproofing and adhesive properties, durability and resistance to heavy loads make it the ideal material for use in all-weather environments. Where strength and weatherproofing are essential requirements, bitumen is a prime contributor to the performance of a vast range of products.

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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : APRIL 2016

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PETROLEUM NEWS & HAPPENINGS

Source of Bad Gas Not Identified in Report [...]... Read more JPS Customers to Pay Less on Electricity Bills [...]...Read more Gas Prices Up $1.49, Diesel Up $1.82 [...]...Read more

Caribbean Energy Jamaican Motorists Pay Year-High For 87 At Pumps [...]...Read more Bogue Plant To Deliver Cheaper Energy Soon [...]... Read more Gas Prices Up $1.96, Diesel Up $2.99[...]...Read more

Government Response To Oil Prices Triggers Moody’s Downgrade For Trinidad [...]...Read more US Group Meets Govt. on Assistance for Oil Sector [...]...Read more Central Bank Warns of Further Contraction of T&T’s Economy [...]...Read more Consumers to Pay More for Fuel – Super and Diesel Attract 15% Increase [...]...Read more EPA to Penalize Bosai after Demerara River Oil Spill[...]...Read more

10 more CNG Stations Coming in Trinidad &Tobago* [...]...Read more

The Pitch Lake

The largest natural deposit of asphalt in the world, at La Brea in southwest Trinidad &Tobago: www.achievett.org


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CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : APRIL 2016

Prices at the Pump APRIL 2016

Retail prices for Regular Unleaded Gasoline in the twelve Caribbean countries reviewed at the end of April 2016 showed increase in prices for seven countries. Price increases were recorded in Barbados, Belize, Dominica, Grenada, Jamaica, St.Lucia and Suriname between 2.5% and 8.5%. The highest price increase was in Suriname of 8.5%. Prices remained stable in Antigua, Guyana, St.Vincent/Grenadines and Trinidad and Tobago while Bahamas recorded a 3.4% decrease in prices.The average retail price at the end of April 2016 was 3.1% higher when compared to the previous month.

Unleaded Gasoline: Regular : Average Retail Price – January - April 2016 (US$/Litre) COUNTRIES ANTIGUA & BARBUDA BAHAMAS BARBADOS BELIZE DOMINICA GRENADA GUYANA JAMAICA ST. LUCIA ST. VINCENT &The GRENADINES SURINAME TRINIDAD & TOBAGO

JAN 1.11 1.01 1.36 1.07 0.80 1.06 0.95 0.91 0.86 0.87 1.34 0.42

FEB 1.03 0.95 1.35 1.03 0.78 1.04 0.85 0.86 0.80 0.78 1.28 0.42

MAR 1.03 0.97 1.32 1.09 0.74 1.01 0.85 0.80 0.78 0.78 1.28 0.42

APR 1.03 0.94 1.39 1.16 0.76 1.05 0.85 0.84 0.82 0.78 1.39 0.42

4 Mths AVG 1.05 0.97 1.36 1.08 0.77 1.04 0.88 0.85 0.81 0.80 1.32 0.42

AVERAGE RETAIL PRICES

0.98

0.93

0.92

0.95

0.95

1.60

Comparative Retail Pump Prices Regular Unleaded Gasoline April 2016 vs. 4 Mths Avg (Jan-April 2016)

1.40

APR

US$/Litre

1.20

4 Mths AVG

1.00

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.

0.80 0.60 0.40 0.20 0.00

12 Caribbean Countries

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International OIL PRICES

CALL: 1-876-927-1779 | CARIBBEAN PETROLEUM UPDATE : APRIL 2016

Average Weekly and Monthly Crude Oil Prices February - April 2016 41.86

45.00 40.00

39.18

35.00 US$/Bbl

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30.00 25.00

31.32

28.14

20.00 15.00 10.00 5.00 0.00 Period

WK2 Feb-16

WK3 Mar-16

WK4

MTH AVG

Apr-16

Average Monthly Crude Oil Prices 2013-2015 120.00

106.61

105.78

100.00 US$/Bbl

Analysis of International Crude Oil Prices from February to April 2016 period showed an average price of US$39.16/bbl . This average price was 4.7% higher than the price seen in March 2016 and 29.7% higher than the average price in February 2016. The highest weekly price seen in April 2016 for the commodity was US$41.86/bbl-reflected in week four while week one accounted for the lowest price of US$36.82/bbl. Overall, the lowest price recorded for the period was US$28.14 in February 2016. The average price reported in April 2016 was 26% lower than the average price recorded in April 2015.

WK1

80.00 60.00

59.91

40.00 20.00

2013

2014

2015

0.00

Period

FEATURED OFFERS: P E TS TATS   -   t h e   Ca r i b b e a n   E n e rg y   I n fo r m at i o n 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.

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