The Energy Chamber has commissioned an independent study to better understand the current value of the energy sector to the economy of Trinidad & Tobago, as well as to determine where opportunities exist to increase the value in the future. The Energy Chamber has contracted the respected Washington D.C-.based consulting group, DAI Sustainable Business Group (SBG), to undertake this study and quantify the contribution of the energy sector.
The preliminary finding of the study will be released at the Trinidad & Tobago Energy Conference on the 22nd January 2018, in a presentation by Zachary Kaplan, Director, DAI Sustainable Business Group. The presentation will be followed by a panel discussion on the findings and their policy implications from a high-powered panel of local business leaders and academics.
The methodology being utilized makes use of SBG’s proprietary economic models which allow us to take data from both operators and companies within the energy sector supply chain. By collecting data at both levels, the consultants will be able to capture the direct economic contribution through local content, of the operators and their indirect contribution throughout the supply chain. These indirect effects will then be used, along with economic multipliers, to calculate the induced effects (such as the effects on communities), allowing us to capture the total value of the sector. SBG will use these measures to calculate the current value addition of the sector and then use a forecasting model to predict future opportunities for local content.
The data for current value comes from surveys of operators and suppliers to determine local expenditures and employment. To calculate the economic multipliers for induced effects, the consultants will use public macroeconomic data sources to develop a Social Accounting Matrix which breaks the economy down by sector to allow for a more specific understanding of the effects of the energy sector’s activities.
The data for the forecasting model to predict opportunities and identify areas for investment in capacity development comes from both operators and suppliers. Operator data will be used to determine the average demand for goods and services by both the upstream and downstream industries in the energy sector. Supplier data, from surveys, desktop research and interviews with industry experts, on the relative competitiveness and capacity of local firms will then be used to identify the local content opportunities based on the demand of operators.
By quantifying the direct, indirect, and induced value of the energy sector through local content, the study aims to provide crucial information to policy makers, investors, and local companies on how the sector affects the economy today, and the potential effects that can be unlocked through deliberate and effective policy strategies.