Transition planning for the energy sector in the Caribbean

Oil and gas companies are coming under the microscope and facing a myriad of pressures in the face of national agendas and policies to reduce emissions and diversify the energy mix, which will change the energy landscape in the region in the decades to come. It is anticipated that the transition to cleaner energy will drive economic opportunities for the region, reduce costs and reliance on international energy markets.

Despite many voices advocating for total elimination of the oil and gas sector, we are increasingly noting even more relevant conversations that hydrocarbons will need to remain a central component of the world and by extension, the region’s energy mix, due to mounting concerns about energy security, affordability, accessibility to storage and the fact that cutting gas could result in a ripple effect which could sharpen demand and raise prices for consumers.

Key questions to be answered are,

“How will the oil and gas industry influence the continued demand for energy while ensuring energy security, affordability, and sustainability are met?” and

“How can oil and gas companies take approaches that could reduce emissions in a way the meets customer needs and multiple stakeholders across the private and public sectors in the Caribbean?”

KPMG recently published a paper which examines measures oil and gas companies can take to support the energy transition beyond solely transitioning away from fossil fuels and natural gas, including, for example, equipping oil and gas processes with carbon capture, utilization and storage (CCUS) technologies, and expanding the use of blue hydrogen.

KPMG in Caricom’s Energy and Natural Resource and ESG experts have since supplemented this thought leadership, with highlights, specifically tailored to the landscape of Caribbean countries. It sheds light on where Caribbean countries currently fall in consumption patterns, energy transition initiatives and trends being observed and expected, as gradual changes are made in the coming years, reducing fossil fuels’ reliance. Download the analysis to read more.