Jamaica Faces Difficult Decision on Oil Exploration Amid Climate Threats
The Caribbean island nation of Jamaica is contemplating offshore oil exploration, following a trend seen in neighboring countries like Guyana, despite facing significant threats from climate change. In recent years, oil and gas exploration in the Caribbean has surged, particularly following successful drilling discoveries in Guyana and Suriname. However, against the backdrop of the International Energy Agency (IEA) calling for an end to new oil and gas exploration, Jamaica stands at a crossroads: pursue a future dependent on fossil fuels or chart a different course.
Jamaica's Current Energy Landscape
Currently, Jamaica is entirely dependent on fuel imports, with annual costs ranging from $1.5 to $2 billion. However, encouraging findings from seafloor samples along Jamaica's southern coast earlier this year suggest the area may be suitable for oil development. UK-based energy company United Oil & Gas has identified the presence of hydrocarbons in samples collected from the Walton-Morant basin, where the company holds exclusive exploration rights over an area of 22,400 km².
Positive Discoveries and Divergent Views
Jamaica's Minister of Energy, Daryl Vaz, described the findings as "very positive" in a press statement. He noted: "They haven't seen or touched the real thing yet, but [the results] are still very important. I am cautiously optimistic and praying a lot because the impact of any find would be huge."
Environmentalists, however, remain less optimistic, particularly given Jamaica's vulnerability to climate change. Last year, the island was devastated by one of the strongest Atlantic hurricanes in recorded history.
Risks from Climate Change
As a Small Island Developing State, Jamaica is severely impacted by climate change, including increasingly intense hurricanes and tropical storms, prolonged droughts, and rising sea levels. According to the United Nations Development Programme (UNDP), Hurricane Beryl in 2024 affected 45,000 farmers, damaged approximately 8,700 homes, and caused an estimated $6.5 billion in economic damage.
Theresa Rodriguez-Moodie, head of the Jamaica Environment Trust, emphasized: "We are still reeling from Hurricane Melissa. You drive through western Jamaica and still see the devastation. We have a $12 billion damage bill, and we are talking about exploring fossil fuels. That's a huge contradiction."
| Year | Hurricane Damage (USD) | Homes Damaged | Farmers Affected |
|---|---|---|---|
| 2024 | 6.5 billion | 8,700 | 45,000 |
Economic Growth Potential and Energy Security
Despite environmental concerns, Jamaica sees potential benefits from neighboring countries like Guyana and Suriname, which have generated significant revenue from oil production in recent years. Energy security is a major concern for Jamaica, particularly amid current geopolitical challenges driving up global oil and gas prices.
Global Commitments and Renewable Energy Future
Jamaica ratified the Paris Agreement in 2017 and in 2024, the government called on other nations to negotiate a treaty focused on phasing out oil, gas, and coal. Jamaica is also a signatory to the Escazú Agreement for Latin America and the Caribbean, and the government has committed to restoring mangrove forests and seagrass in coastal wetlands.
With the Walton-Morant basin located near some of Jamaica's major fishing areas and near mangrove forests, limestone forests, and coral reefs, there are significant concerns about potential environmental impacts from exploration drilling activities in the area, or worse, an oil spill.
Renewable Energy Development Potential
Many experts suggest that strong investment in Jamaica's renewable energy sector could help prevent the need for fossil fuel development. Jamaica has significant potential for green energy development, including solar, hydroelectric, and wind power, which currently contribute about 13% of the island's electricity generation. The government aims for renewable energy to contribute 50% of electricity generation by 2030, but this would require substantial investment in the sector.
While the government struggles to overcome Jamaica's economic and social challenges, developing an oil industry appears highly attractive. However, extracting oil in such a vulnerable region as Jamaica could have severe consequences. To keep oil in the ground and support a global green transition, the international community needs to invest more in helping Jamaica and other island nations develop renewable energy capacity and ensure their long-term energy security.
— Felicity Bradstock for Oilprice.com