Visions of palm trees and sun-soaked beaches usually come to mind when people think of Trinidad and Tobago. But while the twin-island nation is certainly known for its tourism, it is also a quiet powerhouse in oil and natural gas production.
According to the CIA World Factbook, Trinidad and Tobago ranks 45th in global oil production—placing it right between Germany and Italy. The small nation produces roughly 151,600 barrels of oil per day, drawing from an estimated 728.3 million barrels of proven reserves.
While crude oil production has been declining since the early 1980s, massive natural gas discoveries have reinvigorated the energy sector. Thanks to the expansion of Liquefied Natural Gas (LNG) technology, natural gas can now be cheaply and easily shipped to major consumer markets nearby. In 2010, Trinidad and Tobago exported 20.41 billion cubic meters of natural gas, making it the 11th largest exporter in the world.
Together, oil and natural gas account for 40% of the country's GDP and 80% of its total exports. Yet this boom comes with a classic economic paradox: despite generating the vast majority of national revenue, the capital-intensive energy sector employs only 5% of the workforce.
Mindful of this imbalance, Trinidad and Tobago has worked hard to avoid the "oil curse" that plagues many resource-rich nations. Government officials have actively focused on diversifying the economy to ensure long-term stability for when non-renewable resources eventually run out.
So far, that forward-looking strategy appears to be paying off. Trinidad and Tobago enjoys a strong reputation among multinational corporations and maintains a welcoming environment for foreign investment. With an estimated per capita GDP of $21,200, it stands as a solidly middle-income nation and one of the most prosperous economies in Latin America and the Caribbean.
