Belize Energy Independence Mixed Up in Global Politics

Belize’s “infantile oil industry” is already attracting the attention of many across the globe and with energy independence tied like a conjoined twin to national security it’s not surprising to learn that major players like Venezuela and Taiwan have taken a keen interest in what happens in Belize.

Some Key Facts about Belize and it’s Oil Industry

• Belize covers 22,960 sq km in size, south of Mexico, east of Guatemala
• Belize’s Population Estimated at 320,000 people, the lowest population density in Central America
• Cruise Ships alone brought in 150,000 tourists last year
• US Energy Information Administration: Belize consumed 7,400 b/d (barrels a day) of oil in 2007—more than twice the 3,210 b/d the country required in 1998.
• Belize struck oil three years ago
• February oil production from BNE’s seven wells averaged 4,300 b/d
• Oil production shortfall of 3,100 b/d

The Belize Oil Industry in Global Politics

The shortfall of 3,100 b/d is what makes Belize an alluring target for other players in the global oil economy. Taiwan and Venezuela in particular are already actively in the cookie jar. According to “Oil and Gas Journal” :

“In 2006, under its PetroCaribe scheme, Venezuela began to supply Belize with 4,000 b/d of products. In 2007, former Belizean Prime Minister Said Musa sought more help from Chavez, saying, “We’re examining the possibility of a small refinery or a topping up plant to produce diesel in Belize.” Musa also said Belize needed to find its own oil. “As you know we have a small infantile oil industry—infant industry—producing about 3,000 b/d and we, of course, need to do more exploration.”"

But nothing ever came of this 2006 examination and again in 2007 Venezuela declared plans “to study” the construction of a small refinery in Belize. Again, nothing happened. Belize did eventually secure a refinery run by Blue Sky Co., and in January signed a production-sharing agreement with Taiwan’s state-owned CPC. This is where the story get’s more interesting. Apparently, the CPC had invested upwards of $85 million in Venezuela only to have that investment taken from them when Venezuela nationalized CPC’s assets and the oil industry. CPC is still trying to get compensation for this loss. So, Belize has two major players in a tussle over Belize’s oil production with a twist. A CPC spokesman in reference to Belize and South and Central America said “You’ve got to be reasonable in your investment there…it’s a high risk area.”

Belize Oil Industry in Global Politics

Belize News Post recently this information at “Oil and Gas Journal“: Watching The World: Belize’s energy independence