Falling Oil Price a Boost to the Hospitality Sector
Of course, many of us, warmly welcome the current fall in fuel prices which probably in the hospitality sector represents the greatest savings in electricity prices, especially those properties which have extensive air conditioning units. Needless to say however Government will collect a less taxes and VAT, so it’s a two-edged sword.
I also wonder how long it will take our limited number of distribution companies to pass on the benefit of reduced delivery costs as a result of cheaper petrol and diesel prices. Assuming of course, they will pass on the benefits at all.
Experts in the aviation industry do not expect any dramatic reduction in airfares and again it may work initially against the consumer’s interest while used aircraft values rise as fuel falls, slowing down the delivery of newer most fuel-efficient aircraft in some cases.
Across our major tourism markets the halving of oil prices will hopefully give people more disposable income, perhaps most notably in the United Kingdom, where we have witnessed a significant fall in the value of Sterling against the US Dollar.
Judging by the unprecedented level of email holiday bargains on offer in the UK I have tracked, there is absolutely no room for complacency this year and particularly in the more challenging softer summer months. Key to the success of this will be to portray the destination as offering real value-for-money. And I do not mean attempting to achieve the almost impossible objective by making everything cheaper, but ensuring that every product offering is as good as we can get it and going that extra mile to make visitors feel rightly special.
Anyone who has read this column on a consistent basis know that I am a tremendous advocate of building smart partnerships and increasingly more sectors are reaching out to explore how they can work better with the tourism industry.
A recent example is one of the local telecommunication companies offering free SIM cards to visitors who take up one of our re-DISCOVER offers. It’s a win-win concept for all of us. The company builds market share and greater use of its network, the customer (visitor) has lower cost or free calls and texts and we tempt more people to eat in our restaurants, which in turn hopefully increases overall tourism spend. I hastily point out that it was not my idea, but an executive of the telecoms organisation thinking ‘out of the box’.
We are also trying to forge an ‘arrangement’ with a leading US based financial institute who have nearly 50 million branded credit cardholders in their home country alone. As a destination we have sometimes struggled with building awareness of Barbados in the USA and perhaps the falling arrival numbers reflect that. I firmly believe we can change this and the recovery process has already started.
By piggybacking on their brand we get the message out much better and at little cost.
Barbados Underground 
The price of oil will rise again. Any short term gains that will benefot our economy wil not be sustainable.
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Is it the Saudis who have refuse to cut oil product to protect marketshare. Is it overproduction in the US? Is it a tactic to hurt Russia? Whatever the reason the price of gas will not remain low forever. What is Barbados doing to wean itself of fossil fuel QUICKLY!
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Then there is T&T the richest island in the Caribbean because of its oil. How will protracted low oil price impact T&T’s economy and what are the ramifications for Barbados if their big companies meet hard times?
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This article deals with assessing the impact of falling oil price in T&T. Will the politicians listen?
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We tend to think that deflation could be far worse than inflation, in current circumstances.
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Forget Cheap OIL, Barbados should be more concerned with NO OIL OR NATURAL GAS supplies. The Barbados Natural Resource of OIL and NG is finally run out, gone, fini. The question is that this resource has been forecast to run out since early 2000, what was being done when this reality happened, NOTHING as is usual in Barbados.
Another aspect Barbados is FAILING to recognize is the USA normalization of relations with CUBA. One of Barbados major tourist countries(USA) are now going to have cheap(economical) access to the CUBAN market, this will certainly mean that Barbados will see a significant reduction of visitors from the USA as they will be now heading to a much cheaper, cleaner, organized CUBA. This USA normalization of relations with CUBA will not doubt expedite the FAILURE of Barbados Tourist business.
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”Noting that two Methodist ministers had referred to the tough times in preceding addresses to the congregation, Stuart said: “We are going to get through this; no matter how long a night lasts, dawn has to break. There’s nothing called everlasting night or everlasting day either. “And I am pleased that we are beginning to see some light but we have to continue our vigilance and our discipline and our sacrifices and, in the fullness of time, with the providence of God, we will meet at the rendezvous of victory.” (TY) – See more at: http://www.nationnews.com/nationnews/news/62320/stuart-seeing-light#sthash.pNeMqNPX.dpuf
We wonder which world he lives in. For 2015 will be the beginning of the end of western dominance. Yet FJS talks in this manner.
Maybe, just maybe, it is us who are the ones that are mad. If these people are sane, then we relish our status.
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History of Oil and Gas Exploration in Bim
http://www.bnocl.com/index.php?option=com_content&view=article&id=24&Itemid=46
..more
Though being only a relatively small island of 166 sq.miles (431 sq.km), Barbados does possess a history of oil production dating as far back as the eighteenth century where oil was collected from hand dug pits. The West India Petroleum Oil Company first implemented machine drilled wells in 1896. Fourteen wells ranging in depth from 590 to 1600 ft were drilled which yielded a production of 25 078 bbls of oil by 1910 and ushered in a new era in petroleum exploration in Barbados. Over the next 100 years the increasing use of modern technology was used to assess the hydrocarbon potential of the island and to drill wells. In 1919 the British Union Oil company took over the West India Petroleum Co.s operations and produced 126 781 bbls of oil between 1920 and 1940 in the Turners Hall area.
Four oil companies have explored Barbados oil fields since 1950 with varying commercial success. Gulf Oil Co. drilled six deep exploration wells using modern concepts and techniques achieving only limited success. In 1965, General Crude Oil Company started their operations and sixteen exploration wells were drilled island-wide by 1972 and twenty-nine production wells located at the Woodbourne oil field with a production rate of 760bopd. Mobil Oil Co. acquired General Crude in 1979 and commenced the drilling of five deep test wells with no commercial success. The government of Barbados formed the Barbados National Oil Company Limited (BNOCL) in 1982 which continued to develop the Woodbourne field and surrounding areas. There are about 240 Oil and associated gas wells onshore Barbados of which 80 to 100 produce at any one time. These wells are located in the Woodbourne Development Area (WDA) and range in depth from 2000 to 6000 feet. Production is mainly from the Scotland Sand Formation
The BNOCL, a statutory corporation of the Barbados Government currently operates the oil and gas industry in the island and is monitored by the Energy Division. In 1996, the Barbados government and BNOCL decided that it was important to identify an oil and gas company to assist it in further developing the oil and gas resources in Barbados. After significant evaluation it was determined that a small independent company with experience in developing challenging reservoirs would provide the venture with the best chance of success. In return, BNOCL would provide its new development partner with the majority of any incremental production provided from its development programs and an equal voice in developing and implementing the ventures operating plans. An alliance was then formed between oil and gas producers in north Texas and in late 1996, BNOCL executed a 25-year production sharing agreement with Waggoner (Barbados) Ltd.
Barbados currently produces about 1000 bopd which is sent to Trinidad for refining (Mobil’s refinery in Barbados ceased operations in 1998. The site is presently undergoing soil and groundwater remediation). 2.3 mmcfd is produced and is pipelined to the LPG plant in Woodbourne for processing. 1.6 mmcf of this gas is sold to the National Petroleum Corporation for domestic use before conversion.
There are four (4) main stratigraphic units present in Barbados namely, Coral Limestone, Oceanics formation, Intermediate Unit and the Scotland formation in descending order
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The bottomline as BU has been emphasizing from the start of the natural gas shortage, ministers Inniss and Boyce have a lot to answer here. What is happening to affect natural gas subscribers was known in government circles for months!
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Construction of a Barbados \Trinidad pipeline could start by NEXT YEAR….
March 25, 2103…..
snip>
By the Caribbean Journal staff
Construction on a pipeline that will bring natural gas from Trinidad and Tobago to islands of the Eastern Caribbean will begin next year, according to the Eastern Caribbean Gas Pipeline company.
The pipeline will begin at the Cove Eco Business and Industrial Park in southwestern Tobago, with the first phase of the $300 million project to end in Barbados.
Gas will be pumped to Barbados in 2016, according to Greg Rich, the company’s CEO.
The news was announced following a meeting between Tobago Chief Secretary Orville London, Beowful Energy Principal Andy Lindholm and Clyde Williams, technical coordinator for the ECGPC.
Gas will be delivered from the BHP Billiton field east of Trinidad to the Cove, which is a $1 billion processing plant.
The 300-kilometre pipeline will also eventually deliver natural gas to other Eastern Caribbean islands.
“The extensive energy infrastructure experience and substantial financial resources of Beowulf and FREIF will accelerate the implementation of this regionally important project thereby creating long term value for the company’s investors while delivering tangible financial and environmental benefits to the islands served by the pipeline,” Rich said.
Beowulf Energy and First Reserve Energy Infrastructure Fund own a majority interest in ECGPC.
http://www.caribjournal.com/2013/03/25/construction-on-trinidad-barbados-gas-pipeline-could-begin-next-year/
Fa la la la D la la la………………think
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SOLAR and WIND power should be developed to counter the problems with depending on oil and gas.
Everyone knows this makes sense but will a concerted effort be made to “just do it”.
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@Adrian
“Needless to say however Government will collect a less taxes and VAT, so it’s a two-edged sword.”
And a mighty big sword for a cash strapped Government that needs all the taxes and VAT it can put its hands on.
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@ Hants
The lump sum investment up front either in cash or a short term loan (7 years) is a big deterant to most middle and lower income families…solar energy is still quite and expensive endeavour for most….we all not RICH live you Hankie ole boi…LOL
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Pachamama
Let’s hope the light the PM sees (at the end of the tunnel) is not a train coming from the other direction; and “we will meet at the rendezvous of victory.”
De man sure does have a way with words.
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@David January 19, 2015 at 2:06 PM #
“The bottomline as BU has been emphasizing from the start of the natural gas shortage, ministers Inniss and Boyce have a lot to answer here”…………………………
Instead of addressing this embarrassing problem which is detrimental to the tourism sector’s bottom line and their ability to keep Barbadians employed, he finds time to push his mouth in the BLP’s business.
Jackass! The two BLP’s fracas is about talk, his buddy has been convicted in a High Court of law for thieving yet he cannot comment on that. Hypocrite!
He is a little better than Kellman when it comes to diarrhea of the mouth. He is better educated that’s all but says the same nonsense all the time!
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Gail Tverberg is an actuary by training who has worked for many years in the insurance industry. Some years ago she became aware of the “Peak Oil” theory and became curious to explore what implications Peak Oil would have for the industry where she made her livelihood i.e. insurance.
Ms Tverberg has spent the last decade analyzing and writing about issues surrounding resource depletion, the associated rising extraction costs for oil and other resources (as the more accessible and therefore cheaper sources are generally used up first, it becomes necessary to exploit the increasingly expensive to develop and less accessible sources) and the effects these variables have on energy industry profits, corporate and business profits in general, energy costs and world economies. Below is a snip from her forecast for 2015-2016 as posted on her blog. Her forecast of what’s in store is an increasing probability of economic collapse.
As I see it, her take on the situation in a nutshell is: High oil prices drag down economies. Economies slow down or fall into recession, oil prices drop as demand for oil drops (where we are now). If oil prices drop too low and/or stay low for long enough, there won’t be the resources available to ramp up the timely increases in production that would be needed to sustain an economic recovery, so the world economy goes into a permanent decline from which it will never recover. Industrial civilization as we know it is caught behind the 8 ball without a way out. She does not believe that alternate sources will not be sufficiently developed to replace the energy provided by oil when the crisis hits.
Take it or leave it:
Oil and the Economy: Where are We Headed in 2015-16?
by Gail Tverberg
Newspapers in the United States seem to emphasize the positive aspects of the drop in prices. I have written Ten Reasons Why High Oil Prices are a Problem. If our only problem were high oil prices, then low oil prices would seem to be a solution. Unfortunately, the problem we are encountering now is extremely low prices. If prices continue at this low level, or go even lower, we are in deep trouble with respect to future oil extraction.
It seems to me that the situation is much more worrisome than most people would expect. Even if there are some temporary good effects, they will be more than offset by bad effects, some of which could be very bad indeed. We may be reaching limits of a finite world.
The Nature of Our Problem with Oil Prices
The low oil prices we are seeing are a symptom of serious problems within the economy–what I have called “increased inefficiency” (really diminishing returns) leading to low wages. See my post How increased inefficiency explains falling oil prices. While wages have been stagnating, the cost of oil extraction has been increasing by about ten percent a year, described in my post Beginning of the End? Oil Companies Cut Back on Spending.
Needless to say, stagnating wages together with rapidly rising costs of oil production leads to a mismatch between:
The amount consumers can afford for oil
The cost of oil, if oil price matches the cost of production
http://ourfiniteworld.com/2015/01/06/oil-and-the-economy-where-are-we-headed-in-2015-16/
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@ Due Diligence January 19, 2015 at 5:18 PM
“.. “we will meet at the rendezvous of victory.”
De man sure does have a way with words.”
Yes, indeed! A way with ‘other’ people’s words, that is.
He ought to be careful he is not sued for plagiarism and copyright infringement by Dr. Norm Finkelstein.
It seems some lawyers in Barbados have the predilection to misappropriate other people’s property whether it be money, land or intellectual property with the calm assurance they can get away with it.
The only rendezvous that guy has is with the IMF this year, if not with the electorate prematurely to save Barbados from the jaws of economic and social Armageddon.
Nothing original can ever come from that man with such a indecisive vacillating mindset not knowing his broken economic elbow from his social decaying arse.
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@old (newer ) onion bags,
with all due respect, I expect better from you. For example I looked at a google earth map of The Villages of Coverly and I see an opportunity for solar panels on every roof.
I wonder if it is feasible to have a self contained solar electric plant for those houses.
I am just throwing out ideas and I have no expertise in this area but I just can’t understand why a country that has sunshine almost all year is going to continue depending on imported oil to generate electricity.
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@ Hants
You are very correct.
With the cost of solar panels coming down in price internationally through breakthrough in manufactured new material technology it looks very feasible.
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Innovation in the solar industry continues — seemingly at an accelerated pace. At Solar Power International in October a plethora of new solar products and services have been introduced, all striving to reduce total installation costs. I’m confident this trend will continue as R&D efforts by both large and small companies bear fruit. As long as supply shortages and tariffs don’t disrupt our cost structure, these innovations will lead to lower installed costs in 2015 and beyond.
At the top of everyone’s list are a raft of “new and improved” solar modules. With few exceptions, these new modules focus on two product characteristics: higher efficiency and lower costs. Average efficiency of the most common 60 cell modules has been steadily improving; now the most cost effective modules are in the 250-270 watt range.
New inverters and module-level electronics products are the hottest new category. Based on successes of leaders like Enphase, Tigo and SolarEdge, a host of new companies are entering the market. Moreover, new regulatory requirements such as arc fault protection, low voltage support and power factor adjustments create new opportunities for both incumbents and new entrants. Ordinary, non-monitored inverters have become commodities as microinverters, power optimizers and monitoring software become standard. Far-sighted module companies are integrating optimizers and microinverters at their factory, thereby reducing supply chain costs and field labor.
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Greenie
You are one of the most intelligent people in the world! Period!
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@ Anthony January 19, 2015 at 6:38 PM
So what will happen to the millions of barrels of oil and natural gas that lie offshore Barbados ready to be exploited by BH Billiton?
Didn’t the Minister of Finance confirm in his December 2014 statement in Parliament that the PM is about to sign an agreement for the “soon-to-be” started offshore drilling project with a golden bonus to boot?
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The argument that falling oil “prices” on the so-called world market will generally benefit the political economy and services industry sectors of Barbados is a most untenable, unstudied and specious one.
Only simpletons with little or no knowledge of how a money/credit/debit system in Barbados and beyond functions would believe in such stupid trash.
The fact of the matter is that such a money system, the amount of money circulating, the cost of use of money, and competition by the relevant persons and groups of persons for money itself will help principally determine how much remunerations individuals will get in the country of Barbados (or in any other political economy that involves a money system) generally, and the amount of remunerations will itself generally indicate point the level of industrial, productive and commercial activities taking place in this country ( or in any other country ) at a given time.
What is worse is that these mental concepts called prices, by some people, do not exist objectively speaking, and therefore CANNOT rise or fall or remain at any given levels in actual and real terms.
What balderdash and ignorance of the highest order about a political economy and services industry sectors of Barbados generally benefitting from so-called lower oil prices on the world market.
PDC
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miller
That may have been another lie by the biggest liar ever to be elected!
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@ millertheanunnaki
“He ought to be careful he is not sued for plagiarism and copyright infringement by Dr. Norm Finkelstein.”
Seems that you and FJS read the same books.
Not being as well read as you (and FJS) I had to Google “we will meet at the rendezvous of victory.”
Ironic that the quote is from Dr. Finklestain’s book ‘This Time We Went Too Far’
I will never again say “Well, at least he’s an eloquent speaker.
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@ millertheanunnaki January 19, 2015 at 7:20 PM #
@ Anthony January 19, 2015 at 6:38 PM
So what will happen to the millions of barrels of oil and natural gas that lie offshore Barbados ready to be exploited by BH Billiton?
Didn’t the Minister of Finance confirm in his December 2014 statement in Parliament that the PM is about to sign an agreement for the “soon-to-be” started offshore drilling project with a golden bonus to boot?
+++++++++++++++++++++++++++++++++++++++++++++++++++
Due to oil falling over 50% you and I know this project is definitely not feasible.
However if they had done the offshore drilling 6 – 7 years ago Barbados would be doing well until the last several months.
As it relates to manufactured solar panels which is the single biggest cost in a solar project over the last 3 years, wholesale costs have gone down from US$4 per watt to US80 cents (80% drop in cost).
The problem locally is that the players in the market in the Solar Business are not passing on the cheaper costs to customers but are out to get rich quick since it still is a relatively new industry with few major players.
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@ Green Monkey
Skippa…
According to our friend Hants, we should be very worried when bright, intelligent people such as Gail Tverberg are saying the same things as Bushie yuh…
….not that the bushman is in that ‘bright’ league…..just that he is always right…. 🙂
Anyone who understands control theory would know that in stable systems, oscillations tend to decline with time …..while systems with increasingly wide swings are unstable and headed for implosion.
Our world runs on oil, and since the initial shock in the 1970’s the oscillation of global oil prices clearly suggest a world headed to serious instability.
…perhaps the biblical principle of “years of plenty” preceding “years of famine” best reflects this principle of control theory.
….so enjoy the cheap gas, but if wunna smart, wunna would put some oil in wunna lamps – and don’t be caught like ac or the foolish virgins….
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@ Hants
The Villages of Coverly and I see an opportunity for solar panels on every roof.
I wonder if it is feasible to have a self contained solar electric plant for those houses.
Retail : one solar panel at Price Smart sells for $ 700 Bds…… Loan financed :on average to finance a system to provide comparable electicity to one small household will presently cost $47,000.00….repayments per mnth $550 for electricity only..How many over taxed Bajans can find that money at this time???
In short between CLICO,Froon and the great Buffoon .. we Bajans BreKKK as ask……LOL
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…….if a big able speaker wukkin for $154,645 per year….can’t find $208,000- where poor people wukkin on average for $ 45,000 per.yr gine find $47,000???…sellin cornwall?
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@ old onion bags January 19, 2015 at 8:47 PM
You should also ask Hants what about the thousands of households with none or just one breadwinner because of the recent spate of layoffs both in the public and private sectors.
How can they benefit from any solar energy revolution with such upfront high capital outlay involved?
If the current administration had any amount of “creative imagination” it would put its money behind all the long talk about “greening the economy and environmental soundness”.
Why not use this period of low oil prices (with the concomitant ease on the foreign reserves) to create a fund to help finance the transition to alternative energy use for domestic purposes?
Instead of passing on all the oil price reductions to motorists why not ‘encumber’ some of the BNOCL super profits by way of a special levy that can be called the Alternative Energy or the Greening levy?
From this special levy interest free loans on extended repayment terms can be made available to financially hard-pressed households.
The problem arises as to whom will manage the Fund.
Certainly not by civil servants at the beck and call of politicians or even along the lines of the Student revolving loan Fund?
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FUEL CAN DROP ANOTHER 1 DOLLAR A LITER , WE DONT NEED THE HIGH PRICE OF GAS OR FUEL ANY MORE , FOR THEY CANT SAVE CLICO WITH THE EXTRA TAX OR VAT,,,,,,,
WE CAN GIVE BARBADOS A BETTER PRICE THAN WHAT THEY GETTING NOW, WE WILL TAKE A BG.
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@ old onion bags
Look at it in another way from a commercial venture.
If one can set up a self contained solar plant and provide solar electricity to all the residents and charge them 20% less monthly than what is on offer by Light & Power market rate as a package.
Each resident would sign a 10 year contractual agreement for monthly 20% savings.
The property owners would not need the initial large investment.
The commercial enterprise setting up the plant could source direct from Manufacturer (250 watt panels around BD$400 – compared to Pricesmart $700)
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@ Miller
If this Govt is unable to execute the simpliest of matters ….garbage collection….could one expected them to be able to handle a solar revolution? Lest we forget the VAT, Corp Taxes and other excise fringes they stand to lose….why they cannot afford to lose BL&P’s revenues to solar…..let’s face it….it’s bare TALK… lotta nuff,TP n all.
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@ Anthony
How all would love to be rid of this Fossil fuel Monster for good…..but as we all know,too many people stand to lose BIG $$$ by her death. Make no mistake, we are both seeing eye to eye….however, we would really be expecting a bit too much from these cowgirls and love vine boys.. all lookin for ” what’s in it for me first. The slogan Country first is a farce….pensions are # 1, bredds.
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Pachamama (plural) January 19, 2015 at 8:27 AM #
“We tend to think that deflation could be far worse than inflation, in current circumstances.”
Pachamamum(singular),
Can you expand your thinking on this a little?
For example, can you identify a few economic and financial conditions that contribute to the “current circumstances” of our tourism industry? To what extent would these conditions be affected differently by inflationary and deflationary pressures?
Whilst you are working on that assignment, I must confess to you that I am very curious.
Before you curse me, I just want you to consider whether or not these are fair questions:
1. When you write “we”, who do you mean? You and who?
2. Aren’t you able to come up with an idea or opinion of your own?
3. Do you hear voices that comprise the “we” telling you to write, say, and do things?
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Wait Walter…
…you and Caswell is fambly?
The two of wunna does go and do some real shiite sometimes hear…?
Now looka how you just gone and pull a lion tail and play you laughing…..
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Bush Tea January 19, 2015 at 11:53 PM # Wait Walter…
“Now looka how you just gone and pull a lion tail and play you laughing…..”
Bush Tea,
You know me too well!
For “laughing”, I would substitutte “giggling”.
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@ old onion bags January 19, 2015 at 10:00 PM #
Boss, you like you listening to the master …BOB Marley yuh….
So much trouble in the world….
Check out the real situation …. Nation war against Nation…..where did it all begin….where will it end?……Ain’t no use -no one can stop them now….
Total destruction!
FORTUNATELY….
the days will be “numbered” by BBE….else every shiite mash up skippa….
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LOL @ Walter
…mean you ain’t change that funny laugh after all these years in the cold…?
Bushie can’t wait for the lion to respond to your prodding…. this is one big fight where the fallout could be highly educational….
ha ha ha the …bushman can’t even referee the fight, causing he biased in two ways…
…one is towards Pachamama’s royal plurality…after all Bushie writes in the third person simply to piss off a fella call Jack “JA” Boremann….
…and secondly, bushie is inclined to the suggestion that our global economic system has now reached a level of instability such that the oscillations of inflation and deflation are increasing with each cycle. Technically, therefore, the coming deflation could well be more drastic than the last inflation was….
Front row seat reserved Skippa….. 🙂
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If the price of oil has dropped over 50% in the last year and government is said to forward buy maximum 3 months, we have some barefoot liars in Cabinet.
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The issue of low or no natural gas in the hospitality sector is bigger than cooking. It appears many run their laundry operations and other ancillary operations as well with the gas. What a mess.
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David January 20, 2015 at 4:58 AM #
Fiscal deficit has to come down somehow. Even if not sustainable for next year.
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A functional solar system, without batteries, but works with a return meter to Emera, for a three bedroom house, is to my understanding about Bds$20,000.
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But, but wait so far not a fella aint start to talk about the maintainace nor battery life of one of these solar apparatus conjunctions….batteries ent cost 5c ya know and they expected to last 7 years wid good maintainace which by the way is the terms( 7 years) ya negotiated wid D Bank…..so ya back to square one( not D Band).
Nor we ent begin to talk bout how BL&P say they only tekkin 10% of your electricity from your system that it put out pun a sunny day into their Grid…..so all those solar systems wid nah batteries (Crusoe) got no own generated lightin pun a night…..
BTW which Co.\body gine put a good system pun muh house fa $20,000 boa zie?…tell muh cuz I want one….I wud even buy 10 car batteries @ EZ and come out lickin cork Crusoe…
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lemme do lil accounting here bozie
12 panels x $700 = $ 8,400
1 converter = 1,500
10 batteries x $300 = $ 3,000
cables and straps = 1,000
meter = 500
Labour = 1,500
How much dat is now,leme see that is $15,900….I wud save $20,000 – 15,900 = $ 4,100….
Not bad….Bushie I puttin solar in people houses from now on Bredds…U want one?
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Why are hotels on the south coast not using solar water heaters to heat water for rooms?They should not be complaining in 2015 of tourist not getting hot water because of natural gas to run heaters. These hydrocarbons will run out some day but unlikely would the energy of the sun which would be the end.
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@ Why are hotels on the south coast not using solar water heaters to heat water for rooms?
+++++++++++++++
Boss, you done know the answer to that question…..two “B” words…
ANYONE who expects to continue depending on the ongoing availability of affordable fossil fuel for the long term must have their heads buried in the sand and their asses exposed to the sunlight.
One would think that in light of the IMMENSE strides made in solar and other green technologies, these business leaders would have seen the need to move (even if gradually) towards a green based energy future….
….but no!
short term, cheap and quick fossil decisions….which will SURELY come back to bite their exposed asses.
One can excuse the government in this regard since with the level of intellect available at that level their thought processes are largely limited to the potentialities for bribes and kick-backs….and new green businesses don’t have a lotta bribe monies to play with …like old fossils….
…besides, the amount of direct taxes gained from the import of fossil fuels would require a level of intelligence beyond any capabilities currently in parliament to replace in a green economy…
Also, EMERA now find their asses stuck with hundreds of millions of dollars in fossil burning plant, the loans for which will take them YEARS to repay… in an environment where all roads lead to an abandonment of fossil dependence. The term “Stranded assets” must keep them awake at nights….
Bushie often wonders about the “convenience” of the current illogical oil price collapse in an environment where huge fossil burning concerns in the western world were facing certain economic calamity with oil at $100….
Western society is built on oil …and dependent on the ongoing viability of the oil based industries….
Anyone wanna bet the oil price fall is a deliberate strategy to delay the inevitable…?
Their asses are between a very big rock and a VERY hard place…. and we all will eventually get squeezed.
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How many businesses are using natural gas? Do we know?
On Tuesday, 20 January 2015, Barbados Underground wrote:
>
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Bush Tea January 20, 2015 at 12:33 AM #
LOL @ Walter
“Bushie can’t wait for the lion to respond to your prodding…. this is one big fight…..”
ha ha ha the …bushman can’t even referee the fight…….…
Front row seat reserved Skippa….. :)”
Bush Tea,
You see why no sane person is ever willing to stand up and defend Bajans?
After reading all of the worthwhile and weighty contributions that you, Caswell, Old Onions, and Artarxerxes continuously make on BU, I could not sit idly by and allow a schizophrenic “lion” to insult such fine bloggers. I had to “push in my mouth”.
Can you imagine that this “lion” wants all of you to feel ashamed of yourselves for passing the 11+ exam? And then he has the gall, temerity, effrontery, and audacity to tell you all to your collective faces that the school you honourable gentlemen “passed for” is “backward”?
Do you think, a la Gabriel, that the gall is blinding him?
Anyhow, after rushing headlong to defend you guys, what do I get? Nothing more than the sight of you, Bush Tea, scampering to secure a front row seat in order to have a bird’s eye view of the licks that are now about to be shared.
I, the jackass, am now left to take on this “lion” by myself.
You know what? Years ago, the Mighty Sparrow prophesied that this battle was going to take place, so we already know how this fight will end and who will win.
Of course, in the initial stages, I expect to receive some warm lashes in my backside:
“A donkey is an ass and he has no sense. Lion ripped ‘way the donkey clothes, and had the whole ass exposed.”
The licks coming my way will get so hot, that you, Bush Tea will be forced to beg David, the referee, to ring the bell and stop the fight.
Pieceuhderockyeahright will chime in: “Ring the bell for what? Time to ring the bell long passed, not even a miracle could save your partner, ass.”
However, it is written that I will ultimately triumph:
“Lion weaved and that was the case. Donkey grabbed him around ‘e waist.”
Now listen to Pieceuhderockyeahright: “That is foul, referee. That is foul….”
By then, Pachamamum’s tail would be pushed aside, and his crowing and groaning will begin. Then, Bushie, I would join you and say ha ha ha ha.
LOL.
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Just an observation. Our wine supplier has just raised prices even though reduced distribution costs will have at least some limited effect. I understand that a large proportional cost of the BWA is electricity from pumping. Will we now see a reduction in the price of water, or is this yet another way of Government failing to pass on cost savings?
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@ Walter Blackman January 20, 2015 at 3:16 PM
“A donkey is an ass and he has no sense. Lion ripped ‘way the donkey clothes, and had the whole ass exposed.”
The licks coming my way will get so hot, that you, Bush Tea will be forced to beg David, the referee, to ring the bell and stop the fight.
Pieceuhderockyeahright will chime in: “Ring the bell for what? Time to ring the bell long passed, not even a miracle could save your partner, ass.”
However, it is written that I will ultimately triumph:
“Lion weaved and that was the case. Donkey grabbed him around ‘e waist.”
Now listen to Pieceuhderockyeahright: “That is foul, referee. That is foul….”
You are showing your true vintage in using your grasp of the English Literature techniques of analogy and personification.
But there is only one erudite character missing from that rumble in the jungle.
What part would Dear Sweet Robert Ross play in the pantomime of anal delight? Would he, Robert from the Rearguard, be in the corner of Lion ‘Pachaman’ or would (s)he be seen massaging the seminal cannon balls of Wally the Jackass and with gay abandon and wild exclamation shout “break I say Wally, break I say”; and in a fit of uncontrollable retort, Wally the Jackass, after shouting in ecstatic glee of fiddle and failing trials “that is one fowl that will crow”, spills the seminal fluid of milky venom into the ruptured cavity of Lioness ‘Pachamum’ so violently converted to ‘homophilia’ of the RR unorthodoxy.
That’s just a joke shared among those alumni of the University of Waterford with Mr. Wharton its dead poet laureate, right Pachamama!
To McMilton, I crave your indulgence.
“Foes in plenty we shall meet
Hearts courageous scorn defeat
So we press with eager feet
Up and on, Up and on
Ever upward to the fight
Ever upward to the light
Ever true to God and right
Up and on, Up and on.”
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I am told some yougsters named Taitt,Brancker,Callendar,Williams,Armstrong,Wade,Stroude,Walcott,White and some others would sing thusly:-
Fools in plenty we shall meet,
Hearts courageous,scorn defeat,
So we press with eager feets,
Up and on,up and on……….
And the story goes that the Major would turn pink and shout to Mr Gerald Hudson…..stop it please Mr Hudson,stop it,stop it..Now start again boys…..
Fools in plenty…….etc until Crichlow the Head Boy come and stood in the pew
where these wayward and innocent boys suddenly remembered the correct words,because Crichlow used to buss any boy’s backside with licks,authority of the Major himself.Taitt and them fellows were ‘fraid Harll bad.
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millertheanunnaki January 20, 2015 at 5:15 PM #
@ Walter Blackman January 20, 2015 at 3:16 PM
But there is only one erudite character missing from that rumble in the jungle.
What part would Dear Sweet Robert Ross play in the pantomime of anal delight? Would he, Robert from the Rearguard, be in the corner of Lion ‘Pachaman’ or would (s)he be seen massaging the seminal cannon balls of Wally the Jackass and with gay abandon and wild exclamation shout “break I say Wally, break I say”
millertheanunnaki,
As Sir Don would say, “not me and that Pele case, bozie”.
Lord have ‘is mercy, I am so so so glad that I pulled Pachamamum’s tail and not yours!
Wait though. Am I right in thinking that here I am listing Bush Tea, Caswell, Artaxerxes, and Old onions as fine bloggers who allegedly attended a “backward” school without knowing that my list is woefully and embarrassingly short?
Did I omit you, Miller? Et tu Gabriel?
If so, then the title of Wally the Jackass, bestowed upon me by you Miller, is richly deserved. In that case, my seminal cannon balls should not be massaged. They ought to be fired!
LOL.
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NEXT!!!!!!!
THE INTER-AMERICAN DEVELOPMENT BANK (IDB) has withdrawn its support of the controversial Four Seasons Project, cancelling $160 million in loans it committed to the venture more than two years ago
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According to a front page article, entitled “IDB Out”, in today’s edition of the Daily Nation:
“The Inter-American Development Bank has withdrawn its support of the controversial Four Seasons Project, cancelling $160M in loans it committed to the venture more than 2 years ago.”
I guess the bank’s officials made their decision after listening to the “gloom and doom” being preached by Dr. Mascoll, Ryan Straughn, Jeremy Stephen, the moderators and callers on Brass Tacks, as well as reading similar views expressed by the Nation newspaper and its columnists.
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Now Hants, ya hear dez Cawmere fellas in good fooling? Man I bet all like now so U wish you mudda din send U to that Crumpton St institution for Pythagros wild foowls….I din pun D blog when dey did engaging ….but touche’ Wally, Bushie n esp. Miller.. I know D Major smiling….well dun boys….
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The maths on my photovoltaic system worked out like this:
Cost of 5 kW PV system – just over $30,000 (probably less now as that was a 18-24 months ago).
Expenditure – monthly repayment to company which provided finance over 5 years – $700.
Saving – BL&P monthly bill – $500 (I now pay nothing for electricity).
Income – monthly amount paid to me by BL&P for electricity sold back to the grid – $100.
Saving – monthly tax saving on the installation – $100
So $700- $500 -$100 -$100 = I am even on the deal during the loan period. When my loan is paid off, I get free electricity for the remaining life of the system.
Two health warnings – the impact of the FTC decision on renewable energy payments by BL&P is not yet clear. Neither is whether the reduction in electricity prices as a result of the lower Fuel Clause Adjustment would make the decision to invest so clear-cut.
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@ old onion bags January 20, 2015 at 8:14 AM
Accepting that we may be pricing different PV systems, I think your accounting is a bit out, at least for my 5 kW system – see above.
27 nr panels @ $980 = $26,500 (https://shop.pricesmart.com/ba/en/product/242000092/190w-monocrystalline-pv-solar-panel)
1 nr inverter @ $4,700 (http://www.wholesalesolar.com/products.folder/inverter-folder/Sunny-Boy-5000TL-US.html)
Residue of cost to cover wiring, racking, installation etc., $800 (which can’t of course be right but is presumably made up by discounts for buying in bulk etc.
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The BU household wishes to disassociate itself from the behaviour of the Waterford lot exhibited on the blog. Not all of grew up stupid under Noot, Bumpy or Pilly.
Up on on!
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@David
Koleig boy U……sons of Pythagaros..my note to Hants applies to D whole Crumpton st. gang..LOL
@Colonel
Firstly,beg us pardon if I incorrecto…. but based on what you deem as Savings – $500 in the analysis…your electricy bill would have had to be $1,200 before solar. (Orig outlay – Loan repayment )….if that was so….continue smartly Mr.ACCA….LOL
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David January 21, 2015 at 12:19 AM #
“The BU household wishes to disassociate itself from the behaviour of the Waterford lot exhibited on the blog. Not all of (us) grew up stupid under Noot, Bumpy or Pilly.
Up (and) on!”
David,
Just wanted to whisper into your ear that you forgot Stanton.
Chuckle.
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the USA govt sent a high powered delegation to Cuba to iron out all the intricate details in regards to building a meaningful business relationship. this is a development worth following as it opens up the carribbean basin to a better influence especially for those islands that have strong relations with cuba over the years,
don’t be surprised if all goes well that no stone would be left unturned in positioning cuba to be a little china in the carribbean basin. which would be highly beneficial to the small island nations,
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Check where Barbados hotels figure on the TripAdvisor scale.
http://www.tripadvisor.com/TravelersChoice-Hotels-cTop-g147237
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@ Colonel
Here is what I make you position to be…..based on
If I understand you correctly…
1. Loan repayment is $700 for 7 years
2. Electricity bill before solar was $ 500
3. Money recd from BL&p for excess electr. $100
4. Assuming no maintenance cost during 7 years
Your position before Solar
Nett OUTFLOW monthly = $500……………………………………..= yearly $60,000
Your position after Solar
Nett OUTFLOW monthly = ( 700 -100) = $600 x 84 months = yearly $50,400
Nett Yearly outflow = $600
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sorry that should be Nett outflow
After solar Yearly $ 600 x 12 = $7200
Before solar Yearly $500 x12 = 6,000
Diff Yearly $800
Over 7 year life of the loan $800 x 7 = $8,400 OUTFLOW
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……I did not type dat ….NOooooo…. $800 x 7 = $5,600.
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Thanks to old onion bags for causing me to revisit an October 12, 2102, blog: MARKETING BARBADOS TOURIST PRODUCT@
https://barbadosunderground.wordpress.com/2012/10/12/marketing-barbados-tourist-product/
Certainly not for any pearls of wisdom from the poster C-I-O/DD; but for some of the contributions from commenters, I suggest it would be beneficial for BU members and BTMI executive management to revisit that blog.
The David Rice interview posted by David (BU), and part 2 of the same interview, should be required weekly viewing by everyone at BTMI – service, service, service and training, training, training.
DD suspects that Rice decided to return to the private sector when he tired of the political meddling at BTA.
Some interesting comments from Adrian:
“The BTA has lost its declared mandate and objective. It has to be restructured to become a lean, mean professional marketing machine and NOT yet another Government administration department.”
Is BTMI/BTPA a lean, mean professional marketing machine or yet another Government administration department”
“The private sector sent some very strong signals earlier this year and for some reason the Minister, PM and Government didn’t take them seriously.
We are paying the price. No MasterPlan, No head of the BTA (end of this month) and no direction.”
And not to forget the contributions of old onion bags
old onion bags October 12, 2012 at 10:05 AM #
“At the end of the day feasibility studies must be carried out to decide what will make money, works well, and not displacing other worthy opportunities. In the end,a final decision will be made, given all risk and cost considerations…..Solid sound management decision making, while welcoming all ideas and attempting to avoid the risk of mistakes. Tourism is filled with risky decisions and failure to make adequate considerations can be costly.”
That was October 2012 – this is January 2015
Tourism Master Plan on the way
09/01/2015 (13:45) 148 0
The Tourism Master Plan will soon be going before Parliament.
This was revealed by Parliamentary Secretary in the Ministry of Tourism and International Transport, Irene Sandiford-Garner on Thursday. The two-hour press briefing at the Lloyd Erskine Sandiford Centre outlined the state of the Tourism industry.
The Senator revealed that the Tourism Master Plan was submitted to Cabinet on Monday January 5.
The document “is a very detailed study on the tourism industry in this country. We presented it to Cabinet for noting and it will now be presented to the Parliament of Barbados,” she said.
She further explained, “It is about six volumes of documents… It covers the environment, people and organisations; it covers our visitors and the Barbados visitor economy; it covers services, infrastructure and products, and cultural heritage and attractions.”
Senator Sandiford-Garner highlighted, “The master plan will essentially be the document which we will be using in the Ministry of Tourism to guide decision making. It is scientific and comprehensive and it serves as a very important blueprint for us going forward.”
After how many years? That Master Plan (feasability study) must be something to read -when DEM decide to publish it.
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I hope the “Master Plan” takes into consideration probable competition from Cuba after the Americans start building mega resorts and Casinos.
Then there is the unpredictability of the world economy.
Interesting times ahead.
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Hants
The “Master Plan” has been in the process for years, and the last draft would have been prepared long before the easing of USA/Cuba relations.
If they go back to revise it and factor that in, we may never see it in our lifetimes
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@Due Dilligence,
They have no choice but to revise it.
Every year there are major changes to the way we live and especially the way we communicate.
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@ Old Onion Bags
If you are commenting on my figures, I will try and clarify using the same approach as you adopted.
Before PV installation: 12 x $500 = $6,000
After PV installation: 12 x $700 = $8,400
Extra cost =$2,400 per year
Deduct from this power generated and sold:12 x $100 = $1,200
And deduct tax relief on home improvement = 12 x $100 = $1,200
So extra $2,400 – income / tax saving = $2,400 – $1,200 -$1,200 = $0
So it costs me nothing extra for the 5 year loan period.
After that I have free electricity for the life of the system, I just have to pay for maintenance costs.
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@ Colonel
Point well taken……Tax relief… I forget to incorporate in the equation over 7 yrs as this was not given, therefore …($1,200 x 7)= [$8,400 – $5,600] = $ 2,800 Nett Savings…..even better.
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@ old onion bags January 23, 2015 at 8:08 AM
“Point well taken……Tax relief…”
If I were you I would err on the side of conservatism and would omit any tax relief variable from your cost/benefit analysis.
I do not think the IMF is keen in granting such tax concessions (fiscal leakages) in the future to household tax payers.
We shall soon seen when Stinkliar announces the much promised suite of income tax reforms designed by the IMF as part of the fiscal improvement package.
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Contrasting reports on local news tonight.
Brian Talma and his group complain about rising crime and threat to tourism.
Minister Sealy praising the Barbados brand and congratulation properties in St. Lawrence Gap.
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Author James Howard Kunstler latest blog entry: A Solemn Pause
Events are moving faster than brains now. Isn’t it marvelous that gasoline at the pump is a buck cheaper than it was a year ago? A lot of short-sighted idiots are celebrating, unaware that the low oil price is destroying the capacity to deliver future oil at any price. The shale oil wells in North Dakota and Texas, the Tar Sand operations of Alberta, and the deep-water rigs here and abroad just don’t pencil-out economically at $45-a-barrel. So the shale oil wells that are up-and-running will produce for a year and there will be no new ones drilled when they peter out — which is at least 50 percent the first year and all gone after four years.
Anyway, the financial structure of the shale play was suicidal from the get-go. You finance the drilling and fracking with high-yield “junk bonds,” that is, money borrowed from “investors.” You drill like mad and you produce a lot of oil, but even at $105-a-barrel you can’t make profit, meaning you can’t really pay back the investors who loaned you all that money, a lot of it obtained via Too Big To Fail bank carry-trades, levered-up on ”margin,” which allowed said investors to pretend they were risking more money than they had. And then all those levered-up investments — i.e. bets — get hedged in a ghostly underworld of unregulated derivatives contracts that pretend to act as insurance against bad bets with funny money, but in reality can never pay out because the money is not there (and never was.) And then come the margin calls. Uh Oh….
In short, enjoy the $2.50-a-gallon fill-ups while you can, grasshoppers, because when the current crop of fast-depleting shale oil wells dries up, that will be all she wrote.
Continued at:
http://kunstler.com/clusterfuck-nation/a-solemn-pause/
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David could you please check for the comment I posted on this thread with the timestamp of 7:21pm. I suspect it is in moderation because of the rude word included in the URL. However, once you read the post and check the web site, you will understand the reason for including the world clusterf*** in the URL.
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