It's a massive human catastrophe and the effects of Hurricane Katrina will be felt worldwide, including right here in Belize, where the effects of the storm could send gas pump prices even higher. Crude oil prices on the world market today hit an all time high of $70 a barrel. That's because 95% of oilrigs and refineries along the U.S. Gulf Coast were extensively damaged. That forced the U.S. government to release oil from the federal petroleum reserves to try and neutralize the spike in world oil prices.
And even as this chaos unfolds, the folks at P.R. Marriott in Spanish Lookout are taking a two-week break from exploratory drilling operations. They are expected to resume work later this month and 7NEWS has confirmed that prospects continue to be very encouraging for the discovery of a significant oil find. Figures obtained by 7NEWS, and confirmed by senior government sources, say that one layer of the well has put out much as 1,200 barrels a day - 700 more than the 500 that was quoted a month ago.
Encouraged by this find, 7NEWS has confirmed that another company, Island Oil is going through the last stages of environmental clearance. That company will begin offshore exploration in the waters near the Sapodilla Caye range.
And while this local oil exploration is one development, also on the oil front, Deputy Prime Minister John Briceno is going to Jamaica next week to sign the Petrocaribe Agreement. He will join 12 heads of government from Latin American and Caribbean states who are lining up to access cheap fuel from Venezuela. Government has registered a public company, Belize Petroleum Energy, which according to a Cabinet Brief, "will be the conduit for the importation and distribution of Venezuelan fuel." Of course, to import and distribute, government will need a depot. Presently Esso owns the only depot in Belize and to build another one would be prohibitively expensive. This and other aspects of the Petrocaribe proposal continue to be unresolved.
