Two senior energy executives say there are signs of prosperity in the sector even with the price of oil hovering around US $50 per barrel and declines in the T&T economy.
One of them, Vincent Pereira, chairman of the T&T Energy Chamber and president of BHP Billiton T&T, said there can be increased competitiveness if improvements are made to the fiscal framework, gas policy and pricing, efficiency and institutional effectiveness.
He said the challenge is to ensure T&T can compete with other oil and gas provinces and attract investment capital.
Pereira, speaking at the T&T Energy Conference at the Hyatt Regency in Port-of-Spain, welcomed the announcement by Finance Minister Colm Imbert of plans to change the Supplemental Petroleum Tax (SPT) to a profit-based system.
"It is not SPT alone where flexibility is needed, change is also needed to other aspects of the fiscal framework to the production sharing contracts, changes that enable and encourage investment and help make the industry more competitive and sustainable," he said.
"These changes will require continued government-industry dialogue and a commitment to addressing uncompetitive fiscal terms. We must get this right."
Pereira called for a clear and transparent gas policy that provides flexibility of terms to ensure continued investment. He said an approach that recognises the value of market-led pricing is desirable.
"Transparency enables competitiveness, particularly so in gas markets where there is typically less direct market competition to set price, and most gas is sold on long term contracts.
"One of the dangers that countries can face by regulating prices is that they stimulate growing demand for natural gas and this can outstrip supply as it is uneconomic to invest in new upstream gas developments," he said.
Pereira said there should be focus on efficiency and productivity in a market where there is uncertainty to "storm-proof our industry and deliver competitive returns regardless of where the price goes."
He added: "Locally, the industry is not standing still and collaboration to find innovative solutions is occurring at a rapid pace."
Pereira said now that Guyana is ready to boost its energy sector, T&T should be having dialogue with its partners there about opportunities to collaborate.
"Greater levels of collaboration, including around things like rig sharing and mobilisation and demobilisation of support vessels, could help reduce costs in both jurisdictions to the benefit of the people of both countries and the companies involved," he said.
Norman Christie, regional president of bpTT, said his company has had to make painful decisions about staff cuts to cope with T&T's declining economy.
"We have made painful decisions, including a 15 per cent reduction in our overall headcount and a 50 per cent reduction in our expatriate workforce. Our courageous decisions have not only been about reducing and stopping, they have also been about continuing," he said.
"Despite the economic downturn we spent over US$3 billion in capital expenditures in 2015 and 2016 combined. Further, we will spend another US$1.3 billion in 2017 if the environment remains conducive to investments. The US$2 billion Juniper project which will deliver first gas in the third quarter of this year, demonstrates our commitment to investing through cycles."
Christie announced that the company is drilling a Savannah exploration well in the Columbus Basin and is exploring in deep-water blocks.
"Later this year, we will spud a second exploration well called Macadamia in the Columbus Basin. If our exploration efforts are successful it will guarantee benefits to T&T for decades to come and provide a necessary bridge to diversification," he said.