As Prime Minister Stuart Young and three of his Caricom counterparts prepare to meet with US Secretary of State Marco Rubio in Jamaica today, one thing already seems pellucidly clear: The US does not see a role for Venezuela in the future energy stability of this region.
If, perchance, this position was still not obvious based on the venomous, anti-Nicolas Maduro mouthings of President Donald Trump and Mr Rubio himself over the past two months, then the point was certainly brought home yesterday by the US State Department’s Special Envoy for Latin America, Mauricio Claver-Caron.
In a briefing from Washington ahead of today’s Kingston meeting, also involving the leaders of Jamaica, Barbados and Haiti, Claver-Caron assured the US is deeply committed to working with Caricom, and in particular T&T, to help it revitalise its all-important energy sector.
However, in a very detailed brief outlining key positions to be taken by the Trump administration in the talks with Caricom leaders, it was instructive that absolutely no mention was made of the T&T/Venezuela Dragon gas deal.
Claver-Caron spent a lot of time articulating the US position on Venezuela, whose “troubling” energy history with the Caribbean he strongly denounced, as he made clear the message Rubio intends to communicate to regional leaders today.
The US government official further criticised the PetroCaribe agreement between Venezuela and Caricom nations as one of “endemic corruption” and regional “extortion,” while proposing that Guyana, Suriname and T&T, with US assistance, could become the new energy providers for the Caribbean.
What Claver-Caron appeared to be telling us, without doing so directly, is that T&T is unlikely to get any further US support for the Dragon gas arrangement because of Venezuela’s involvement in it.
This would leave T&T in a very vulnerable position economically, even though the US seems determined to work with Trinidad to “re-energise” its economy and to ensure that it “continues to move forward.”
Former prime minister Dr Keith Rowley, in announcing the extension of T&T’s licence to work with Shell on exploration and production, had noted in December 2023 that the Dragon field was not only to give T&T more access to gas but would have benefited the people of Venezuela in giving them access to the international market and benefits from the earnings of the operation.
This is exactly what the new Trump administration is seeking to crush, a stance reinforced this week with the imposition of a 25 per cent tariff on any country that purchases oil and gas from Caracas.
With the writing now on the wall, we are not yet clear what Rubio intends to propose as a demonstration of his administration’s “deep commitment” to T&T’s gas future.
Outside of the Dragon field, T&T’s options for future gas development remain very limited and unless the US provides an option that would provide a reliable supply, it is difficult to understand where we can go from here with gas production.
Prime Minister Young’s leadership in this regard is therefore critical.
Having led the discussions on T&T’s energy future for the last four years after succeeding the late energy minister Franklin Khan, he now needs to put all of his expertise and energy to work to push Secretary Rubio for the best possible outcome for T&T.
With the country’s economic future now resting heavily upon his shoulder, how he manages this issue can potentially determine his political future as well.