Galeota Crude Oil of Trinidad & Tobago: Its History, Price, and Production
Very little is known about crude oil from Trinidad & Tobago, so in this article, we will introduce you to its history, production, and impact on global commodity markets.
What is Galeota Crude Oil?
The Galeota Crude Oil was discovered in the Galeota area in 1970.
Galeota Crude oil is a blend of heavy, medium, and light crude oils extracted from the Galeota Field in the Gulf of Paria, close to the country’s coast. Galeota Crude is different from other crude oils extracted in T&T as it is a mixture of light, medium, and heavy crude oils that are blended. In addition, Galeota Crude is a light crude because it has low viscosity, color, and sulfur content.
Galetoa crude oil is the third largest reserve discovered in Trinidad and Tobago after the Ufa and Narfas oils. The Galeta natural reservoir comprises three sub-reservoirs – Upper, Central, and Lower.
These Crude oils were first extracted from the Ufa oil field, but further exploration uncovered a new underground reservoir close to the old one as extraction continued. As a result, the Central Galeta reservoir was discovered in 2000 with an estimated reserve of 20 million barrels. Around 40 million barrels of oil have been extracted from the Galeta reserves.
Where is Galeota Crude Oil Produced?
The Galeota Field is located in the Gulf of Paria, approximately 16 miles offshore from T&T’s western coast. Galeota Crude Oil is produced from an onshore oil field about five miles wide and eight miles long.
This field is owned by the Government of T&T and operated by the state-owned Oil Company of T&T (Petrotrin).
Why is Galeota Crude Important?
Galeota Crude oil is the primary source of income for the government of T&T. Apart from its importance as an economic source, it also plays a crucial role in keeping the lights on in T&T.
The electricity-generating stations in T&T consume approximately 300,000 barrels of oil each year. This oil is sourced from Galeota, which is good because if Galeota stops producing oil, the country has other sources to fall back on.
Galeota Crude is also crucial because it is used to power most vessels transporting goods in and out of the country. Galeota Crude is also used to produce asphalt, which is one of the main components used to build roads.
Price of Galeota Crude Oil
The global oil market determines the price of Galeota Crude oil. For example, the average price of Galeota Crude Oil in 2018 was US $73.85.
Transportation of Galeota Crude
The transportation of Galeota Crude oil is done by tanker vessels. Tanker vessels are large ships specially designed to store and transport crude oil. The tankers transporting Galeota Crude Oil depart from the La Brea Wharf in T&T’s capital, Port of Spain.
Additionally, the tankers can also pass from the Gulf of Paria. Once the crude oil has been loaded onto the tanker, it will leave T&T’s waters and head to the closest port in Trinidad and Tobago, located in Pointe-a-Pierre. Then, the crude oil will be transported across the Caribbean Sea to the Gulf of Mexico.
Finally, the crude oil from the Gulf of Mexico will be transported across the Atlantic Ocean to Europe or Asia. The crude oil can also be transported to the United States. Once the crude oil leaves T&T’s waters, it is at the mercy of the weather.
Owners and Operators of Galeota
Five companies have signed contracts with Petrotrin to explore and produce Galeota Crude Oil. These companies are: ExxonMobil Trinidad and Tobago Exploration and Production Limited (ExxonMobil) Petrotrin has a joint venture with the company.
Hess Trinidad and Tobago Petroleum Exploration and Production Limited (Hess) Petrotrin has a joint venture with the company.
Shell Trinidad and Tobago Exploration and Production Company Limited (Shell) The company has a joint venture with Petrotrin.
The Chinese National Petroleum Company (CNPC) The company has a joint venture with Petrotrin.
Galeota crude oil is a light to medium crude oil with an API gravity of approximately 42 degrees. The main components of this crude are n-paraffin, waxy paraffin, and wax esters. Therefore, it is also commonly known as T&T Light crude.
Galeota crude oil is produced in Trinidad and Tobago and is typically found in the box formation. This porous sandstone contains naturally occurring pockets of oil and gas. Typically, these formations are located within the Tarakan Formation along the southern coast of Trinidad and Tobago, with a high concentration of porous sandstone.
In addition to being close to the sea, other factors contribute to the production of Galeota crude oil, including large amounts of water from rain and evaporation, low temperatures, and fluctuations in pressure from nearby seabed erosion.
Galeota crude oil is extracted using surface mining methods such as hand drilling and mechanical drilling. After extraction, it is sent to a refinery, which is processed into gasoline, diesel fuel, jet fuel, lubricants, or asphalt.
Galeota Crude oil is essential to the economy of T&T because it provides a large amount of the country’s revenue. Galeota Crude oil is extracted from the Galeota Field in the Gulf of Paria, close to the country’s coast. Galeota Crude is a type of liquid fossil fuel that is removed from the earth.
Galeota Crude is a light crude oil extracted from the Galeota Field in the Gulf of Paria. This crude oil is essential because it is the primary source of income for the government of T&T.