Recent reports indicating hydrocarbons detected offshore Jamaica’s southern basin have understandably once again piqued national interest in the possibility of oil or natural gas resources. While these findings do not confirm a commercial discovery, they strengthen the case that Jamaica’s offshore geology may contain an active petroleum system worthy of further exploration.

At this stage, optimism should be balanced with realism to ensure proactive national preparation.

Despite the renewed attention, Jamaica’s engagement with petroleum is not new. Since the 1950s, successive administrations have recognised the importance of energy security to economic development and have made meaningful contributions to our energy journey. The acquisition and establishment of Petrojam in the 1960s, expansion of refinery capacity and the legislative framework of the Petroleum Act in the 1970s followed by the full reacquisition of Petrojam in 2019 all reflect a consistent understanding that energy infrastructure plays a critical role in national resilience and competitiveness.

Today, Jamaica operates within a global energy environment undergoing transition, where traditional hydrocarbons co-exist with emerging low carbon technologies. The possibility of commercially viable oil or gas therefore presents not only an energy opportunity, but also an industrial one.

The true value of any discovery lies not simply in extracting crude, but in how effectively the country positions itself across the wider value chain of refining, storage, logistics, marine bunkering, petrochemicals, and related services. Jamaica’s geographic location along major shipping routes strengthens the potential to participate in regional energy trade and fuel logistics should exploration prove successful. Affordable and predictable energy costs also have implications for manufacturing competitiveness, industrial expansion, and Jamaica’s long-standing ambition to strengthen its position as a logistics and transshipment hub. However, natural resources alone do not automatically translate into broad-based national prosperity. Strategic preparation determines whether economic benefits are widely shared or narrowly concentrated. The objective is not to rush policy decisions, but rather to ensure readiness.

Global experience shows that the discovery of oil does not automatically translate into broad-based national prosperity. Countries such as Nigeria and Angola have generated significant petroleum revenues over decades yet have faced challenges ensuring widespread local participation in senior technical and managerial roles, while in some cases exporting crude oil but importing refined products due to limited downstream capacity. In Venezuela, heavy dependence on oil revenues exposed the economy to volatility when production declined, highlighting the importance of economic diversification and strong institutional oversight. These experiences illustrate that without deliberate policy design, strong regulatory frameworks, and investment in local human capital, a significant portion of the value generated can remain concentrated among external operators or narrow segments of the economy. Conversely, countries that planned early strengthened legislative frameworks, built local technical capacity, and positioned domestic institutions to participate meaningfully across the value chain. For Jamaica, the lesson is clear: any potential discovery should be viewed not as an end in itself, but as a catalyst to strengthen national capability, ensure meaningful local participation at professional and leadership levels, and support broader economic competitiveness.

Jamaica already possesses several foundational advantages, including an established petroleum institution in the Petroleum Corporation of Jamaica, refining capability through Petrojam, and strong engineering programmes at Utech, CMU and the UWI which produce graduates in disciplines directly transferable to the energy sector.

These foundations provide a meaningful starting point. However, if exploration progresses, three priority areas warrant continued focus to ensure Jamaica captures maximum value for its citizens.

First, a comprehensive review and modernisation of the Petroleum Act maybe necessary to better reflect the complexity of modern energy development. While the Petroleum Act establishes the fundamental principles of state ownership, licensing, and royalty structures for petroleum resources, the legislation reflects an earlier era of exploration and does not yet fully address the governance demands of a modern offshore oil and gas sector. In particular, the Act provides limited provisions regarding transparency, measurable reporting obligations, environmental stewardship, and accountability mechanisms consistent with current international ESG standards. Provisions requiring structured disclosure of production data, fiscal terms, environmental performance, decommissioning liabilities, and public reporting of resource revenues could be strengthened to reinforce public trust and institutional credibility. Additionally, should commercially viable gas be discovered, the Act does not explicitly address the regulatory treatment of natural gas, creating potential legal ambiguity in an area that may hold equal or greater economic value than oil itself. While we await confirmation, the review and modernising process could begin to ensure Jamaica is institutionally prepared to manage this resource development responsibly, transparently, and in a manner aligned with long-term national interests.

Second, the sector will require more than engineers. Opportunities exist in project management, procurement, finance, environmental management, data analysis, law, logistics, and regulatory oversight. Strengthening comprehensive local content legislation that extends beyond direct employment to include logistics, fabrication, transportation, accommodation, catering and other supporting industries will be essential to ensuring that Jamaicans benefit not only from Government revenues, but from meaningful participation across technical, managerial and administrative levels within and peripheral to the industry.

Multinational energy companies will understandably seek to generate value for their shareholders. It is therefore the role of national policy to ensure that Jamaicans are equipped to participate competitively in senior technical, professional, and leadership roles over the medium to long term. It requires deliberate investment in human capital development, structured knowledge transfer, and collaboration between industry and educational institutions. Jamaica already has strong engineering programmes and regional partnerships through the UWI system, including specialised energy programmes currently offered in Trinidad and Tobago. These provide a basis upon which targeted upskilling programmes, professional certifications, and specialised energy modules can be expanded locally if exploration advances.

Collaboration between HEART NSTA Trust, CMU, UWI, UTech, and industry stakeholders can help ensure that Jamaicans are prepared to participate meaningfully in emerging sectors.

Even in the absence of commercial discovery, these skills remain relevant within the wider Caribbean, where energy sectors in Guyana, Trinidad and Tobago, and Suriname continue to expand. Through CSME arrangements, Jamaican professionals already have pathways to participate in these markets while also positioning Jamaica as a potential regional training hub for energy-related skills. Individuals may also wish to begin exploring areas of study, certification, and entrepreneurship that align with opportunities across the broader energy value chain.

Third, institutional coordination and readiness across government agencies will be essential to ensuring that Jamaica can efficiently capitalise on any potential discovery. Petrojam will naturally play a central role, but effective sector development will also require preparation across supporting institutions including the Port Authority of Jamaica, National Environment and Planning Agency, Bureau of Standards Jamaica, Jamaica Customs Agency, and the Auditor General’s Department, among others. Each will have a role in areas such as infrastructure readiness, permitting, standards development, trade facilitation, monitoring, and public accountability. Developing internal frameworks now allows agencies to consider how their mandates may intersect with a future petroleum sector and to identify capacity needs early. A plan does not presume that commercial discoveries will occur, but it ensures that if they do, Jamaica avoids playing catch-up and is better positioned to coordinate efficiently, capture value, and maintain strong oversight in the interest of the Jamaican people.

Jamaica has the advantage of time to prepare thoughtfully and strategically. How effectively that time is used will ultimately determine the level of value captured for the Jamaican people.

Orville Levy (Photo: Adrian Creary)