‘GREENER BAHAMAS FROM OIL REVENUE’

As of Friday, June 13, 2014

By AVA TURNQUEST

Tribune Staff Reporter

aturnquest@tribunemedia.net

“NONSENSICAL” was the way Bahamas Petroleum Company CEO Simon Potter dismissed the idea of using fossil fuel to provide energy for the Family Islands. Rather, he said, the potential oil revenues could fund a “greening” of the Bahamian economy.

Speaking from his own perspective, Mr Potter said there were “plenty of options” for consideration into local power generation on individual islands, but cost was a major barrier.

His remarks were made during a panel discussion at an environmental law and policy conference at the College of the Bahamas yesterday.

“I think that a fossil fuel provision in an archipelago is just nonsense,” Mr Potter said.

“It’s inefficient moving energy around in an archipelago. It creates risk, it’s very expensive to do. What we should be doing is putting our efforts into local power generation at each of the individual Family Islands, and there’s plenty of options. There’s wind, solar, tidal, all of these options.

“I personally would like to see a greening of the energy economy here in the Bahamas,” he said. “The problem is it’s hugely expensive, it costs an awful lot of money to do that. It costs an awful lot of commitment to rip up your existing fossil fuel infrastructure. My idea would be, it’s a global oil market, what better way to pay for that greening of your economy than through oil revenues?”

Mr Potter was a panellist at the Oil Exploration, Oil Spills and Environmental Damage Conference, hosted by COB’s LLB programme.

He was joined by Brent Williamson, Joint Chair, National Oil Spills Committee; Alicia Elias-Roberts, Lecturer, Oil and Gas Law at UWI in St. Augustine, Trinidad & Tobago; and Sam Duncombe, director of reEarth.

The panel, Oil Exploration and Oil Spills, was moderated by Dr. Peter Maynard, Head of Department for COB’s LL.B. Programme, and Matthew Brotmann, Pace University Law School.

During his presentation, Mr Potter referred to projections, based on data gathered by an independent scientific research institute, which indicated that in a worst case scenario, Cuba would bear the brunt of the environmental impact from a spill.

He added: “I won’t lie about the motive, we’re a commercial company. We need to generate a return for our shareholders, but I certainly would like to be able to do it in this forum with collaboration, with me being held accountable for the job that we do.”

Although Environment Minister Kenred Dorsett and Attorney General Allyson Maynard-Gibson spoke at the opening of the forum, they did not stay for the panel discussions.

During his keynote address, Mr Dorsett underscored that fossil fuels will be a part of the future despite the government’s concerted thrust to pursue alternative energy. He explained that careful oversight was critical to ensuring a meaningful balance for the mitigation and responsibility of worst outcomes, such as oil spills.

Oil exploration in the Bahamas dates back to the ’70s, according to Mr Dorsett, who said that BPC had applied for and acquired five oil exploration licenses by 2006 – four in South Andros, and one in North Andros.

However, exploration was put on hold due to the proximity of perceived boundaries between the Bahamas and Cuba, and given the company’s American interests. Talks with Cuba over clear legal boundary and delimitation lines were not completed until 2012, he said.

During that time, Mr Dorsett said the Macondo oil spill – also known as the Deepwater Horizon or BP oil spill, and the largest spill on record – changed the world, and subsequently alerted the government of the need for better regulations.

“The government,” said Mr Dorsett, “then realised that its environmental regulations did not adequately address oil spills and they needed to be improved to protect the present environment. Since coming to office, my ministry initiated the process that has produced five draft proposed bills and regulations that we hope will be presented to Cabinet soon for review. They are an amended Petroleum Act, amended Petroleum regulations, a sovereign wealth fund, a petroleum exploration and environmental protection and pollution control regulations, and petroleum exploration health and safety regulations.

“It is important to note,” Mr Dorsett added, “that the Bahamas has the third largest barrier reef in the world near Andros, appreciating this fact my ministry – in conjunction with the Bahamas Reef Environmental Education Foundation – are also in the process of advancing draft legislation to protect these environmental treasures.”

Also in the pipeline, is the statutory establishment of a Department of Environmental Planning and Protection, Mr Dorsett said.

According to Mr Dorsett, the country experienced a spate of industrial and accidental oil spills in 2013, primarily involving the Bahamas Oil Refining Company (BORCO), Haitian sloops, oil tankers, and the Bahamas Electricity Corporation’s fuel facility.

Observer 10 years, 5 months ago

How did you calculate the return to Bahamians, 4 ?

ThisIsOurs 10 years, 5 months ago

Protect Andros?? Mr Dorsett, when you find a way to cap a deep water oil spill in less than 30 days let us know. You'll be the first.

TalRussell 10 years, 5 months ago

Take it from me.Tourists ain't keen for swimming in oily waters or tanning on nasty oil sludge covered beaches. I always get a chuckle reading about Bahamas Petroleum Company. Comrades remember it really wasn't that long ago we were dependent upon Kerosene oil for we Three Burner Table Top Stoves and Fridges, which I'm pretty damn sure Comrade Simeon wouldn't recognize a stove's wick if one was steering him in he face. It's important we remember Kerosene was the first major product of the oil industry. If this oil bounty turns out being no more than a dud and not the promised wealth boom for Bahamaland, as is being promoted, when the oil sludge drillers move on to their next nation's venture, leaving behind destruction to our marine life, waters and beaches, we might all wish if only we, our parents or grandparents had hung onto Three Burner Kerosene Stoves and Wicks. Where will the Billions of dollars come from to clean up what is ruined while drilling to find out it \wasn't anything more than an oil stock markets pipe dream?

GrassRoot 10 years, 5 months ago

Provide a bond of a few dozen million dollars and then you can start drilling. In the Bahamas, people make noises, when there are no results.

Wakeup 10 years, 5 months ago

I think you all need to wake up or/and maybe do some research. How many oil spills have there been? What are the chances of a spill when BPC drill? If you feel that strongly about extracting fuel from the seabed I presume you are not all driving around in cars as that would be very hypocritical. Bahamas has the chance to get some real money come into the area for its people, education, pensions, healthcare the list is endless, and you are turning your back on it. Most other country's in the world are praying they have oil off their shores so to boost that country's wealth massively. Drilling is going to take place IMO so best embrace it and look forward to a better future because of it.

Bahamianman 10 years, 5 months ago

I think wakeup is a shareholder wanting dollars. The Bahamas is one of the most beautiful sets of island in the world and I will do everything I can to protect it. I regularly speak with Bahamian oil ministers and environmental agencies on this issue because I run a small environmental fund and also work in the Bahamas National Trust, Nassau.

God gave us beauty. We must not ruin it. We would rather buy oil from elsewhere then drill ourselves and risk tourism loss.

TalRussell 10 years, 5 months ago

Comrades funny how some think it's OK to allow the foreigners to drill Bahamaland's waters for oil sludge, claiming it's the best solution to deal with higher gasoline prices at the fuel pumps.What if we start were to start with the easy, non-threatening to our marine life and sandy beaches stuff first, like BEC making the Hotels and many other Business Operators to pay the thousand and into the millions of dollars they owe to BEC? You pass-by government buildings at night and while the government workers are at home sleeping the lights be burning brighter than on a full moon night. But the government (present and past) would rather turn off the lights of the paychecks pressed Bahamalanders, than collect just a portion of the millions of dollars owing to BEC from just one Hotel? BEC's Comrade Potcake talks a damn lot about the 20,000 paychecks strapped Bahamalanders who owes BEC a few hundred dollars but never once have I read about him bringing down the hammer on the others owing big time dollars to BEC, like politicians on both sides of the House of Assembly and Senate or political corporate heads who are donors to both political parties? Maybe, after BEC collects their millions of dollars, we can listen to talk about drilling for thick dark sludge in Bahamaland's waters. If he is not the one not cutting off the lights of the Hotels and Businesses, who in cabinet is stopping him from snatching they light meter, right off they walls?

killemwitdakno 10 years, 5 months ago

DORSETT MUST STEP DOWN!!!!!

Another muffin for the agitated oil investors who know damn well this "BG" isn't merely interested in proper regulations. This is the same party who during their last term never sought to even put in place maritime boundaries between Cuba. Perhaps they could care less as long as they got their shares from buddy Catsro. This man is sick. Not to mention BPC who only now wants to talk green when on the last oil publication all the pro drillers were saying us islanders could use it. HA the CEO just said hell no he's not sharing OUR oil with us.

COMMIT TO A REFERENDUM AND A FAIR TRUST FUND PLAN IN WRITING RELEASE THE FOREIGN INVESTMENT MODEL AND TRUST FUND MODEL

http://rt.com/shows/boom-bust/157568-pr…