WILLEMSTAD – Last week, the management of 2Bays Curaçao (formerly Refineria di Kòrsou, owner of the Isla and Bullebaai refineries on behalf of the government) spoke about the ongoing challenges and efforts to revive the oil refining industry in the Caribbean. 

Interim Director Patrick Newton, speaking at the invitation of the Association of Dutch Caribbean Economists (DCE), commonly known as the 'Economists Club,' highlighted the multifaceted factors that will determine the future viability of refineries in the region. 

"The future of refineries will depend on a combination of factors," Newton explained. Key elements include profitability, especially refining margins, the quality of refined products, and the differences between deep-conversion versus medium-conversion refineries. Ownership structures and strategic value also play significant roles, particularly the contrast between National Oil Companies (NOCs) and independent commercial refineries or joint ventures. 

Newton emphasized that for NOC-owned refineries, the vision of the respective government on their role within the broader economy will be a crucial consideration. Furthermore, he touched on the increasing importance of environmental investments, given the tightening regulations and taxes on hydrocarbons. 

As 2Bays transitions Curaçao’s oil sector to meet new challenges and opportunities, Newton also took the opportunity to reflect on the region’s petroleum industry, both past and present. He noted that the revitalization of the Caribbean’s refining heritage is a complex but necessary process that will require careful management and innovative approaches moving forward.