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CARIBBEAN ENERGY INFORMATION SYSTEM (CEIS) JANUARY 2013 ISSUE negative because oil is toxic to almost all forms of life and contains high health risks. The possibility of climate change exists. Other impacts include air emissions which includes greenhouse gasses (which lead to global warming), air pollutants, spills and the land disturbed and altered by oil drilling, pipelines, storage tanks and processing plants.

LIQUID GOLD, Man’s Good Fortune or a Nuisance

Health Risk of producing Petroleum. Toxicity Crude oil is composed of many different types of organic compounds, many of which are highly toxic and causes cancer. Oil and other petroleum products, while being lethal to fish and other types of animals also cause birth defects in humans. According to World Peak oil facts, “The world now consumes 85 million barrels of crude oil per day, or 40,000 gallons per second, the Caribbean by itself consumes approximately 171,500,000 gallons of crude oil per year, and this is equivalent to 470,000 barrels per day”. According to eia.gov, approximately 280 million barrels of gasoline is consumed world-

Since the discovery of oil and years later moving towards the first large petroleum refinery built in Ploesti, Romania in 1856, oil has significantly contributed to man’s existence. According to

and plastics to generate electricity. Petroleum, commonly referred to as oil, is closely linked to virtually all aspects of present society, especially for transportation and heating for commercial activities. Oil has earned the name Liquid Gold as it has proven to be one of today’s most important necessities.

Caribbean fact sheet (eia.doe.gov), “Oil is the dominant fuel, accounting for approximately 92% of total energy consumption.” The majority of petroleum produced and consumed in the Caribbean is used in the transportation, residential, commercial and industrial sectors. Two thirds of refined oil goes to fuel for cars, trucks and airplanes, the remainder is use to create the many industrial oil based products used in our houses such as lubricants

Given the impression that every country around the world that has been blessed with this most essential commodity is looked upon as elite in comparison to continued on page 2/ others that do not have this natural resource, there are sevCONTACT US eral primary environmental impacts of using oil. These enCaribbean Energy Information System vironmental impacts are often 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 : January 2013

LIQUID GOLD, Man’s Good Fortune or a Nuisance............................................... continued from page 1 wide per day and according to the mundi index, an average of 240 thousand barrels of motor gasoline is consumed per day in Latin America and the Caribbean. Benzene is a poisonous chemical substance present in both crude oil and gasoline. It is famously known to cause leukaemia in humans. The compound is also known to lower the white blood cell count in humans, which would leave people exposed as they would be more susceptible to getting infections. Studies have linked benzene exposure in the mere parts per billion (ppb) ranges to terminal leukaemia, Hodgkin’s lymphoma and other blood and immune system diseases within 5-15 years of exposure. Exhaustion The consumption of oil or petroleum involves burning and when this happens, usually the combustion is not complete. This means that incomplete burned compounds are formed along with water and carbon dioxide. The other compounds are often toxic to life such as carbon monoxide and methanol. Also, fine particulates of soot blacken humans’ and other animals' lungs and cause heart problems and/or cancer, or can lead to slow or sudden death. There have been reported cases of illness caused from exhaustion in the Caribbean and the victims all reside in and around the urban areas.

bines with water in the atmosphere, causes many problems such as dead trees and acidified lakes with dead fish. Coral reefs in Caribbean waters have also been affected by acidic water caused by acid rain. Acid rain leads to increased corrosion of machinery and structures (large amounts of capital), and to the slow destruction of important archaeological structures (building that were built during slavery). Climate change Large amounts of carbon dioxide is created from burning large amounts of petroleum (more so in metropolitan areas), this produces large amounts of carbon dioxide. Methane is also released from drilling for oil or from the oil itself. This has a global impact as these gasses traps heat in the earth’s atmosphere resulting in sea level rise and a strengthening or increase in the frequency and severity of some extreme weather events (such as hurricanes in the Caribbean). This effect is more as a result of the actions of larger countries as they produce greater amounts of carbon dioxide and methane than the Caribbean. China and the USA together produce over 41% of the world’s carbon dioxide (according to the global warming portal). This however impacts the Caribbean as rising sea level will be more visible on the coastlines of smaller countries compared to large countries .

Acid Rain Oil Spills and Waste Oils High temperatures created by burning petroleum causes acid rain as nitrogen gas in the air oxidizes along with sulphur from the oil. This mixture com-

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The release of a liquid petroleum hydrocarbon into the Caribbean Sea, especially in our marine areas, is pollu-

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tion. Oil spills, where oil is released into the ocean or coastal waters or on land causes destruction to coral reefs, marine and animal life. There are four major oil spills in history (Kuwaiti oil lakes, Lakeview Gusher, Gulf War oil spill and the recent Gold of Mexico oil spill). The approximately 35000-60000 barrels per day oil spill from the Gulf of Mexico in 2010, combined with the high sea temperatures oil penetrated into the structure of the plumage of birds and the fur of mammals, reducing their insulating ability, making them more vulnerable to temperature fluctuations and much less buoyant in the water. This coupled with the natural environment of the Caribbean (temperatures, high winds and natural disasters), also threatened parts of the Caribbean as there were a lot of marine life and Small Island coastal areas that would have been affected. The clean up and recovery process would also be very costly and difficult as they would have to take into consideration barriers such as the temperature of the water, types of shoreline, coral reefs, etc. Waste oils such as hydraulic oil, transmission oil, brake fluids, motor oil, crankcase oil, gear box oil and synthetic oil causes some of the same problems as natural petroleum where the oil drips from vehicles over streets and roads, penetrates the road and pollutes the water table. The oil travels into the water table bringing with it such toxins like benzene. This poisons both the soil and drinking water. Runoff from storms carries waste oil into rivers and oceans, poisoning them as well.

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Caribbean Petroleum Update : January 2013 | Call: 1-876-927-1779

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PETROLEUM NEWS & HAPPENINGS Chávez-Type Strength Key To PetroCaribe [...]...Read more

Government strikes deal on US$1.0B debt with power companies [...]...Read more DeJongh Requests Extension for Underground Utilities in Charlotte Amalie[...]...Read more Power wheeling may be the one bright spark this year [...]...Read more Gas prices increase again [...]...Read more

St. Lucia Moves To Lower Electricity Rates [...]...Read more Legislation changes may give St Lucia consumers electricity rate ease [...]...Read more

Act Now On Energy – Private Sector Gives Gov’t Ultimatum To Outline Policy, OUR Apologises To Paulwell [...]...Read more Trinidad economy threatened by rise of US shale says analyst [...]...Read more No agreement yet with the electricity companies[...]...Read more

Oil At US$96 [...]...Read more Fuels will cost more, except natural gas[...]...Read more Gas prices increase $1.44 per litre [...]...Read more Oil Prices Steady [...]...Read more JPS to be lenient with customers in hurricane-battered parishes [...]...Read more

Grenada gov’t passes on buying power company, as Canadians eye swoop[...]...Read more

Low-carbon motoring: sounds good? [...]...Read more Hovensa Gas Rates Tick Upward [...]...Read more Oil Closes Above US$93 [...]...Read more More Net Billing Licences this Year [...]...Read more Petrotrin looking to invest TT$7 billion in new drill sites [...]...Read more

Grenada utility to remain in private hands[...]...Read more

Chávez-Type Strength Key To PetroCaribe [...]...Read more Government strikes deal on US$1.0B debt with power companies [...]...Read more Oil Closes Above US$93 [...]...Read more Petrotrin looking to invest TT$7 billion in new drill sites [...]...Read more

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Call: 1-876-927-1779 | Caribbean Petroleum Update : January 2013

REGULAR UNLEADED GASOLINE AVERAGE PRICES AT THE PUMP January 2013 Retail prices for Regular Unleaded Gasoline in the ten Caribbean countries reviewed at the end of January 2013, remained relatively stable in Antigua and Barbuda and Trinidad and Tobago. Marginal decreases were seen in Belize, BVI, Dominica, Jamaica, St. Lucia, and Turks and Caicos. Bahamas and St. Vincent and the Grenadines were the only countries that saw an increase in prices when compared to the Decembers prices. Fluctuations in prices were in the range of –6.34% and 1.48%. The average retail prices at the end of January 2013 for the ten countries when compared to the average retail prices for December 2012 saw a decrease by 0.04 cents .

Regular Unleaded Gasoline Average Retail Price (US$/Litre) 2013 COUNTRIES

DEC

JAN

ANTIGUA/ BARBUDA

1.23 1.35 1.42 1.19 1.20 1.30 1.10 1.22 1.28 1.21 1.41 0.42 1.54

1.23 1.37 1.33 1.21 1.18 1.29 1.15 1.21 1.26 1.22 1.42 0.42 1.52

BAHAMAS [91 OCT] BELIZE [87 OCT] B.V.I [87 OCT] DOMINICA GRENADA (95 OCT) GUYANA JAMAICA ST. LUCIA ST. VINCENT/ GRENADINES SURINAME [95 OCT] TRINIDAD/ TOBAGO [92 OCT] TURKS/ CAICOS

2 Mths Avg 1.23 1.36 1.37 1.20 1.19 1.29 1.13 1.22 1.27 1.21 1.42 0.42 1.53

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.

Image source: http://www.123newyear.com

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Caribbean Petroleum Update : January 2013 | Call: 1-876-927-1779

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REGULAR UNLEADED GASOLINE AVERAGE PRICES AT THE PUMP CHART OF RETAIL PUMP PRICES FOR JANUARY 2013

Comparative Retail Pump Prices Regular Unleaded Gasoline JANUARY 2013 Mths Avg (Dec-12 Jan-13)

1.80

US$/Litre

1.60

JAN

Mths Avg

1.40 1.20 1.00 0.80 0.60 0.40 0.20 -

13 Caribbean Countries

See prices for all products at www.cippet.org .

LIQUID GOLD, Man’s Good Fortune or a Nuisance cont’d from page 2

Air Pollution In the Caribbean air pollution is the most common and visible impact of oil usage. This results from high oil usage in factory operations and petroleum refineries. The production of the toxins nitrogen dioxide and sulphur dioxide is evident from the usage of unleaded, diesel and premium gasoline used mostly for operating vehicles. The health effects caused by this kind of air pollution include difficulty in breath-

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ing, wheezing, coughing and aggravation of existing respiratory and cardiac conditions. These effects can result in high costs due to increased medication use, increased doctor or emergency room visits, more hospital admissions and premature death. According to the world health organisation “2.4 million people die each year from causes directly attributable to air pollution”.

into commercial products. This may take up hundreds to thousands of acres of land depending on the capacity of the plant. This plant also takes into account air pollution through the production of high amounts of carbon dioxide and methane. Oil or liquid gold as we know it, is a necessity and has significantly contributed to the development of man. While very valuable and necessary for everyday life, there are however some severe adverse impacts that must be carefully considered and controlled. These raise the concerns as to whether oil is man’s piece of good fortune or a nuisance.

Land/Space Another environmental impact on the Caribbean is the land/space taken up by the wells, pipelines, roads, processing plants and other facilities needed to remove oil from the ground and turn it

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Call: 1-876-927-1779 | Caribbean Petroleum Update : January 2013

Average Weekly & Monthly Crude Oil Prices (Nov 2012 January 2013)

98.0

US$/BBL US$/BBL

96.0

95.5

94.0 92.0

90.0

90.0

87.34

88.0

87.34

86.0 84.0 82.0

NOV

DEC

JAN

Mth Avg

80.0

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International Crude Oil prices over the period November 2012 to January 2013 saw prices trending upward in January when compared to November and December. The highest weekly price was seen at US$95.5BBL - reflected at the end of the 4th week of January. Crude Oil prices for the month of January remained over $92.00/BBL for the entire month. The average prices for November, December and January were US$86.6/BBL, US$86.8/BBL and US$93.9/BBL respectively. The average price in January was approximately 7.49% and 7.74% higher than December and November 2011 respectively.

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Period

Average Monthly World Crude Oil Prices (2010 - 2012)

US$/BBL

109.61

106.0

110 100

88.14

90 80 70

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2011

2012

60

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Yr Avg

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.

Subscriptions If you wish to subscribe (free of charge) or cancel your subscription to the CARIBBEAN PETROLEUM UPDATE, send us an email at:

ceis@src-jamaica.org See CEIS FOR MORE:

www.ceis-caribenergy.org Join us through CIPORE on Facebook, Twitter, LinkedIn and Subscribe to our RSS Feed

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Petroleum Update January 2013