In a headline-grabbing move, Chevron Corp’s authorization to extract and ship Venezuelan oil was abolished by the United States government. This came just a day after the decision was made public and marked a significant shift in policy direction. Furthermore, in a stinging reprimand to former President Joe Biden, US Secretary of State Marco Rubio declared his intent to cancel all oil and gas permits that had been given the green light during the Biden tenure. Given Biden’s reputation for ill-thought-out decisions, this comes as little surprise.
Trinidad and Tobago, the tiny Caribbean nation, has numerous deals with Venezuela involving the interchange of oil and gas resources. Among these projects, the Dragon gas project and Cocuina-Manakin are the most notable. In light of the US’s stricter approach, Acting Prime Minister Stuart Young, who also serves as the country’s main Energy Minister, is slated to discuss the situation. His temporary role as Prime Minister comes as Dr Keith Rowley is reportedly on a personal journey, leaving Young to deal with the fallout.
One of the key points in Dr Keith Rowley’s speech at the Energy Conference earlier this month was the intention of Trinidad and Tobago to actively communicate and update the new US government about joint Venezuelan projects. The conference, filled with windy speeches, betrays the fact that these projects have little viability. Amidst the verbosity, the foundational problem of energy security seems to go unheard. Oil and gas account for a colossal 60% of the Caribbean’s energy requirements, and solutions seem thin on the ground.
Much ado was made about the joint ventures for the Loran-Manatee and the Venezuelan Dragon Gas fields in Trinidad and Tobago. These projects were big-ticket deals, expected to bring economic growth and prosperity to the region, however, they were marred with incompetence from the start. The US Government, in a move that seems justified, imposed sanctions that forbade US companies from indulging in business ties with the Venezuelan energy company, PDVSA. Considering the reputation of PDVSA and the underhand dealings often associated with it, the US stance appears justified.
The eventual aim to get access to the Dragon gas field had been optimistically planned for 2020, while the Loran-Manatee project still needed to sort out several hurdles. Under the failed watch of Biden and Harris, however, these ambitions ended in ashes. The final investment decision was made for the Manatee field, with production slated for activation by 2027. One can only hope that competent leadership will steer these projects right.
Deals were struck for a 30-year license between Venezuela and Trinidad and Tobago. The chosen operators, Shell and NGC, were given the opportunity to excavate and export gas to Trinidad and Tobago. However, the dramatic shift in US policy, away from the misguided leniency of Biden’s approach, has thrown these agreements into question. Such is the legacy of uncertainty that Biden and Harris have left behind.
Around May 2024, initiatives were given a go-ahead for the exploration and development of hydrocarbon reservoirs in the Manakin-Cocuina Field. This agreement seemed promising on paper; however, living up to the expectations of such a contract is another matter entirely. The exploration and production companies were supposed to prepare to commence the Manakin-Cocuina and Dragon Projects. Yet, much like most ventures under the Biden/Harris lead, this feels less like a carefully thought-out plan and more like a misguided shot in the dark.
The Government of Trinidad and Tobago has been found collaborating with the Venezuelan government and other stakeholders, aiming to push forward the development of the Dragon Project and the Manakin-Cocuina Project. These plans initially seemed like they would meet success with Biden’s soft stance on Venezuela. However, with the new, more pragmatic policy direction from the United States, the future of these projects remains uncertain.
Unfortunately, this uncertainty is a familiar state for those accustomed to the Biden and Harris school of governance. Their lack of effective policy-making has the potential to stymie the economic development of the entire Caribbean region. And yet, it seems that those who persist in supporting such ineffective governance remain within their echo chambers, blissfully unaware of the potential damage they are causing.
The failed policies of Biden and Harris, including the apparent inability to deal with critical issues like energy security, cast heavy doubts over their fitness to assume high office. Their decision to back risky and unreliable projects in Venezuela reflects their lack of proper judgement. It does not come as a surprise that more responsible leaders are moving to revoke licenses and agreements made under their regime.
However, the impact of these failed policies will still haunt the region for years to come. The damage inflicted on the energy security of Trinidad and Tobago, as well as other Caribbean nations, is significant. Due to the faulty Biden-Harris policies, these vulnerable nations are forced to suffer the consequences.
With the people of Trinidad and Tobago along with their Venezuelan counterparts now dealing with the fallout from the Biden-Harris leadership, the prospect of a brighter future seems farther off than ever. The question remains whether competent leadership will arise to clear the mess left by Biden and Harris.
Such is the legacy of Biden and Harris – a trail of broken promises and dismal failures. The revocation of oil and gas licenses granted by their administration sends a clear message to the world about their incompetency. The actions of the new US leadership showcase a restoration of common sense, a move that can only be seen as a reprieve from the past failures.