Paulwell warns of possible oil shortage
Published:Tuesday | June 14, 2022 | 12:10 AM
BUFF BAY, West Portland:
Opposition Spokesman on Energy Phillip Paulwell is urging Jamaicans to brace for what he described “as a shortage of gasolene”, which he believes could impact the country greatly as other countries are seeking to purchase oil in the region.
Paulwell, one of two guest speakers at a People’s National Party (PNP) divisional conference in Buff Bay, Portland, on Sunday night, warned that Jamaica could run out of oil as the war between Russia and Ukraine continues.
According to Paulwell, the boycott and sanctions imposed against Russia have resulted in other countries with more robust and stable financial economies now looking to purchase oil in this region, which could have serious implications on Jamaica going forward.
He argued that the work put in by former PNP administrations to secure the 2005 PetroCaribe oil deal with Venezuela had benefited Jamaica greatly as the country was able to purchase gasolene at the market value, but was allowed to pay only a percentage of the cost upfront.
Paulwell bashed the governing Jamaica Labour Party (JLP) for destroying what he described “as a lucrative oil deal”.
“You know how hard we worked to establish PetroCaribe? This was an agreement involving Venezuela, Cuba, the rest of the Caribbean, and Jamaica. I was the deputy chairman of PetroCaribe and when the JLP demonstrated against Hugo Chavez coming to Jamaica and they fought against PetroCaribe, we signed an agreement that allowed this country to benefit at concessionary rates,” the former energy minister said.
“When the JLP came to office what did they do? What did Andrew Holness do? He turned his back on Venezuela. He burned the bridge. Venezuela invested in our refinery and Holness almost kick them in the mouth. Today, we are in danger of running out of oil. People start to boycott Russia. Those countries are now looking to our region to buy oil and they have bigger money than Jamaica.”
He noted that the largest oil reserves in the world are in Venezuela and that what Jamaica has done over time is to cut off its nose to spite its face.
The opposition spokesman on energy also pointed out that while Petrojam, the state-owned oil refinery, takes 33,000 barrels a day, that supply of oil is seemingly about to dwindle.
Businessman Desmond Lewis was elected as the PNP councillor-caretaker at the divisional conference, which was held at the Buff Bay Primary School.