Belize

Historical Context

Oil exploration in Belize has a long history, dating back to the 1930s. During this period, major oil companies such as Shell, Esso, Texaco, and Gulf Oil were granted exploration licenses.

Current Status

Despite the early start, Belize's oil sector has not developed significantly. Here are some reasons and current standings:

Moratorium on Offshore Oil Exploration

In recent years, the Belizean government has placed an indefinite moratorium on offshore oil exploration. This decision was largely driven by environmental concerns, particularly the protection of the Belize Barrier Reef, which is a UNESCO World Heritage site. The reef was removed from the endangered list in 2018 after the government implemented several conservation measures, including the ban on offshore oil exploration.

Onshore Exploration

While offshore exploration is halted, there have been some onshore activities. However, these have not led to significant commercial oil production. The institutional framework and policy environment for managing an oil sector effectively are still under development.

Policy and Regulatory Framework

The management and sustainability of the oil sector in Belize are challenged by the country's institutional setting. The paper by Manzano and Vernon highlights that the institutional framework is crucial for an effectively managed and financially viable oil sector. However, Belize's current policies and laws may not be fully equipped to handle the complexities of oil exploration and production.

Environmental Concerns

Belize's decision to halt offshore oil exploration is largely due to environmental concerns. The Belize Barrier Reef, a critical ecosystem, was threatened by offshore oil activities, along with other unsustainable development projects and climate impacts. The government's commitment to protecting 30% of its ocean territory and the removal of the reef from UNESCO's List in Danger underscore the priority given to environmental conservation over oil exploration.

Economic Considerations

The potential economic benefits of an oil sector are significant, but they must be balanced against the environmental and social costs. Belize's economy is heavily reliant on tourism, which accounts for 41% of the national income. The risk of oil spills or other environmental damage could jeopardize this vital sector.

Future Prospects

Given the current moratorium and the lack of significant onshore discoveries, the immediate future of oil projects in Belize appears limited. The focus has shifted towards sustainable energy sources, such as hydropower, biomass, and other renewable energy projects, as outlined in the National Energy Plan and the Sustainable Energy Strategy.

In summary, while Belize has a history of oil exploration, the current profile of oil projects is characterized by:

• A moratorium on offshore oil exploration due to environmental concerns.
• Limited onshore exploration activities without significant commercial production.
• An institutional framework that is still developing to manage an oil sector effectively.
• A strong emphasis on environmental conservation and sustainable energy alternatives.
• Economic priorities that favor tourism and other sustainable sectors over oil exploration.