Benefitting from Existing Comparative Advantage: Maximizing Economic Rents

Abstract

This chapter discusses the comparative advantage, energy sector of the T&T economy and outlines several measures that could prolong the economic benefits from the sector. A twofold strategy is emphasized here: (a) maximizing the current rents from the energy sector (BT) this is elaborated in this chapter, whilst simultaneously trying to strengthen the non-energy sector. The chapter outlines the need to increase deep water exploration and to further modify the Special Petroleum Tax (SPT). It also emphasizes the need to explore joint ventures between large and small producers to further explore secondary and tertiary oil recovery efforts and the importance of restarting the refinery. The critical importance of the LO/FO/IPSC program is highlighted and a call made to expand its width and depth.