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That’s the view of San Fernando Business Association (SBA) president Kiran Singh, who also noted that this year’s budget should also reflect the dwindling supplies and peg the fiscal package at a conservative oil and gas price.

Also responding to the Ryder Scott report, the

Energy Chamber said one method to stimulate growth in the energy sector was by tweaking the Supplemental Petroleum Tax (SPT) fiscal regime in relation to mature oil fields.

The Chamber said the Ryder Scott natural gas audit report for 2009 came “at a time when there is already ongoing national dialogue on the country’s future natural gas utilisation and exploration activity.”

‘Natural gas converted into LNG accounts for 30 percent of our exports and its contribution to national development is immense and cannot be understated. This year’s Ryder Scott findings show the country’s 2009 proven reserves declining to 14.4 trillion cubic feet (tcf) from 15.3 tcf in 2008. Following a downward trend, Trinidad and Tobago’s proven reserves have declined every year in the past decade.

There is also a concern over the rate at which the country replaces its gas reserves as the country’s reserve to production ratio (RP) has consistently trended downwards since 1998,” the chamber said.

“These statistical trends should prompt swift, joint action by Government, the private sector and other stakeholders – especially action on stimulating exploration of our hydrocarbons.

The upcoming bid round is therefore critical,’ the chamber added.

“In fact, the Energy Chamber of Trinidad and Tobago views the upcoming shallow/average water depth bid round – and the deepwater bid round that is due to follow close on its heals - as crucial for the future of Trinidad and Tobago’s energy sector and national development,” the chamber said, pointing out that shallow/average bid round was due to close on the 11th August 2010.

“Getting all of the details right in the current bid round will translate to the major oil and gas companies having the confidence to make aggressive bids to access the acreage on offer.

“While these plans will stimulate medium term growth, there are concrete measures which can be taken to stimulate short term activity in the sector. One immediate step can be a policy to increase oil production by tweaking the Supplemental Petroleum Tax (SPT) fiscal regime, especially as it relates to mature oil reservoirs,’ the chamber said.

“With limited changes to the SPT fiscal regime the country can increase oil production by at least 16,000 bbd from existing oil reservoirs, leading to additional Government revenue and increased direct and indirect employment which translates to increased PAYE and Corporation Tax receipts. The bottom line is that activity needs to be generated.”