Referendum needed on LNG
Belco, if it gets its way, will soon be investing $200 million into natural gas conversion — liquefied natural gas. What does this mean to the average Bermudian? Why is this the single most important issue facing Bermuda? Why do you need to be a part of that decision?
Walter Higgins, the chief executive officer of Ascendant Group Ltd, two years ago said ...
“If you believe the oil price is going to fall to $20 a barrel, then the economics of LNG don't work. But if you believe the oil price could go up to $200 a barrel — as I do — then our prices would be much uglier than they are today.”
Back then the price of oil was $100 a barrel. Today the price of oil is $40 a barrel.
Let's face it, Walter, we have never been able to predict the price of oil, nor will we ever be able to predict the price of LNG in the future. It could go up or it could come down. It is pure Economics 101.
So, where does that leave us if we put all our eggs into one big LNG basket? Quite frankly, we don't know.
And if it turns out to be a very bad decision, we will be stuck with that decision for the next 30 years. So, you ask, what can I do?
You need to ask the Government to hold a referendum on whether LNG should be allowed into Bermuda. If the people vote “No”, Belco and the Government will have no option but to go back to the drawing board and consider how they can get the right renewable energy mix to work for Bermuda.
Your input is needed. Everyone needs to be involved. Wake up, Bermuda.
It is your and your children's energy future. Everyone's voice counts.