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Nov 21, 2012

Study shows Belize oil refinery not feasible

Dean Barrow

The United Democratic Party’s campaign manifesto going into General Elections earlier this year included the prospect of establishing a national oil refinery.  In fact, during a press conference unveiling the UDP’s platform, P.M. Barrow said he was, “absolutely determined that there will be the construction of an oil refinery in this country.  We have to start processing our own local crude.” Since being re-elected, however, the Barrow Administration has been rather silent on that promise.  Today the prime minister told the media that after conducting a preliminary study, setting up a refinery in Belize would not be practical.

 

Prime Minister Dean Barrow

“We had a study done.  We had a feasibility study done, paid for by ourselves and BNE.  Our share came from something we made off a backhaul arrangement we had allowed B.N.E. to have done.  Bottom line though that study shows that it’s not feasible in current circumstance at all.  It’s not going to, in terms of the throughput and the economies of scale, they aren’t there so that it would not result in any appreciable lowering of the price to the consumer at all.”

 

Jules Vasquez, 7 News

“But if more oil finds were to be made…”

 

Prime Minister Dean Barrow

“Then possibly you can look at that but all the calculations on net present value and so on were not favorable even when they made certain projections so I think we would have to have a ton load, a quantum increase in oil finds in this country so that the throughput in terms of volume increases measurably before we could put that back on the table.”

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7 Responses for “Study shows Belize oil refinery not feasible”

  1. Storm says:

    Are you surprised that another Barrow promise was empty?

  2. Rasta says:

    We all knew that from the beginning. Was just promises to win an election. Same old same old.

  3. me says:

    NOW NOW NOW. DO YOU ALL REMEMBER THE CUBAN WHO WAS REFINING OIL WITHOUT A STUDY BEING DONE? THEY READY TO SPEND THE MONEY IN STUDIES JUST TO WASTE THE CASH WE DON’T HAVE. ALL READY TO DO THE WRONG THINGS, READY TO WASTE MONIES IN STUDIES, READY TO LOCK UP THE CUBAN WHO WAS PROVING ALL THE TECHNOCRATS WRONG. THAT CUBAN WAS REALLY REFINING OIL IN A CRUDE WAY. WHY DIDN’T THEY CALL UP DI MAN AND SPEND THAT MONEY IN GETTING HIM A PROPERLY DONE EQUIPMENT TO REFINE OUR OIL? WORRIED ABOUT FINDING OIL IN HUGE QUANTITIES, WE GOT OIL. RENEW BNE LICENSE AND YOU WILL SEE HOW QUICK THEY WILL FIND MORE OIL.

  4. reader says:

    The Cuban was refining oil with what safety standards, and what quality standards? To do it properly and produce quality diesel and gasoline that won’t wreck your engine costs $$$. Plus the little amount that BNE produces could never make enough fuel for the country and the price wouldn’t be high because it would cost a lot to build a refinery for a small amount of oil. Didn’t make sense from the beginning.

  5. Vuk says:

    I’d disagree with the assertion that an oil refinery isn’t feasible.

    So what if the oil finds aren’t large so far?

    The fact of the matter is that Belize is and will continue to be an petroleum importer, at least for some time, and it would make sense, if we were to look at things from a long-term perspective, to, at least, to find some way to refine the petroleum that’s being imported into gasoline, other fuel oils and value-added petrochemical products.

    This would help lower prices at the pump considerably, increase the industrial potential of the country, expand foreign exchange revenue levels and allow us to make the most of what’s already being extracted.

    Moreover, while it’s true that such an undertaking would require a high degree of foreign assistance (both financial and otherwise), it’d be more an asset than a liability because, if established in the correct fashion, it’ll eventually pay for itself.

  6. Bear says:

    @me has a point — I’ll bet there are some oil people in the States who can say quickly and with certainty the quantity of oil necessary to make a refinery profitable. I wonder if GOB thought to ask any of them?

  7. John Wells, CEO says:

    Refinery not feasible???? Why? You just do not have your numbers right. We can build a 2,000 to a 10,000 BPSD refinery for Belize and make it profitable. This would be a good starting point.
    Quit dreaming of a 100,000 BPSD mega dream that will not work. Start on something that fits you.

    Your people put up the funds, enter into discussions with us and we will build your small refinery. Quit sitting around and get started.
    John Wells, CEO Powermain LLC
    http://www.powermain.us

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