Along with most members of the business community, the Energy Chamber of T&T has expressed its full support of the sate of emergency and other government initiatives aimed at reducing crime and promoting law and order. As the Prime Minister and other government ministers and officials have recognised, however, the introduction of a 9 pm to 5 am curfew in major towns and cities has inevitably had an adverse impact on business. This impact will obviously be felt most severely in the entertainment and hospitality sector, but it has also had an impact on other sectors, including the energy sector.
The energy sector is the lifeblood of our economy. It runs 24 hours a day, seven days a week, 365 days a year. While the majority of the physical plant in the sector is outside of the curfew areas, being either offshore, in rural south Trinidad, Point Fortin or in the Point Lisas area, the curfew still has an impact on people working in the sector and travelling to and from the work sites. It is therefore important to assess how the state of emergency has impacted on the energy sector and, by extension, our membership. We carried out a sample survey from our membership-select upstream, downstream and midstream operators as well as the energy services companies-to ascertain the influence of the state of emergency on their businesses.
Survey results
The survey highlighted how the state of emergency has affected individual companies' production, the specific challenges companies face due to the state of emergency and the in-company solutions put in place to counter these challenges. Based on results, 54 per cent of respondents noted that the state of emergency has affected the production or the volume of their business while 46 per cent of respondents reported no change in the value and volume of their business. Most operating companies in both the upstream and petrochemicals sector did not report that the state of emergency and curfew had a major impact on their actual production as yet. However, it has led to delays in the implementation of maintenance or construction projects and drilling programmes, potentially leading to constrained production in the future.
These delays have had a more immediate impact on service companies and contractors who have had to slow down or postpone the implementation of activities. The companies affected cite maintenance delays, cancellation of shifts, transportation delays and problems associated with travel for employees living in designated curfew areas. Some have also cited delays caused by international teams postponing travel to Trinidad. Traditionally, the oilfield sector has started work early in the morning, and some of the work sites are long distances from main population centres on minor roads. The 5 am curfew has meant that start times for morning shifts have been delayed. Even outside of the curfew areas, some member companies have reported that police road blocks have discouraged workers from travelling to work sites during curfew hours.
A number of other challenges has been identified by respondents:
• increased demurrage charges, increased overtime claims
• transportation from the airport and heliport
• absenteeism and contractor shift management
Delays at the two major ports have created concerns for a number of projects, as equipment and supplies needed by the sector may not be available as planned.
Companies have had to be creative in countering these challenges. Some of the companies surveyed have had to change their shift times, reduce working hours or even use videoconferencing to communicate during curfew hours.
The permitting process
The process of attaining permits for employees to travel during curfew hours was also addressed in the survey. More than three-quarter of the respondents claimed they have not yet received the permits they believe are necessary for their key staff to travel during curfew hours. While the major energy sector companies do now appear to have been able to get the necessary permits, these companies, in turn, rely on the services of contractors and service companies. The majority of these service companies and contractors report that they have not been able to get permits for staff members. It is extremely important that critical staff in the energy sector have the ability to travel during the curfew hours as they need to be on-call if there are any emergency situations on a plant or a facility. In a number of cases, it is also important that contractor staff also have access to permits to be able to travel.
While it is operator staff who authorise work, on the whole, it is contractors who do the actual technical work at plants or in the oilfields. The Energy Chamber has been in communication with relevant authorities to try to find mechanisms to minimise the impact of the limited state of emergency on the business community, in particular, through issuing permits to key staff members. Continued communication and identification of the companies in need of permits will help avoid any complications and we stand ready to assist in any way possible to ensure the smooth distribution of these permits.
Conclusion
While the state of emergency will inevitably have an impact on people's lives and on business productivity, the Energy Chamber recognises that these sacrifices are necessary if we are to root out the criminal element in our society. We trust that these measures will be short-lived and have a rapid impact on the crime situation, whilst recognising that continued efforts will have to be made to address the underlying causes of crime. Crime not only acts as a deterrent to new investment, but increases the cost of doing business, and, at a time when the country needs to attract significant investment, any measures to reduce crime can only be beneficial to the country's short-, medium- and long-term growth.
