Petroleum in The Bahamas plays a limited but strategic role, primarily focused on importation and storage, rather than production or refining. The country does not currently produce oil or natural gas commercially, but it has been the subject of exploration efforts and environmental debate.
1. Petroleum Status Overview
- The Bahamas imports all of its petroleum products, including gasoline, diesel, and aviation fuel.
- These imports are essential for:
- Electricity generation
- Transportation
- Tourism and aviation industries
- There is no oil refining capacity within the country.
2. Major Storage Facilities
- The Bahamas is home to one of the largest oil storage facilities in the Western Hemisphere: Buckeye Bahamas Hub (formerly BORCO)
- Located in Freeport, Grand Bahama
- Owned by Buckeye Partners, L.P. (a U.S.-based energy company)
- Stores, blends, and transships crude oil and petroleum products
- Strategic hub for oil movement between North America, Latin America, and Europe
3. Exploration Efforts
- In recent years, there has been interest in offshore oil drilling, especially in the waters southwest of Andros Island. Bahamas Petroleum Company (BPC) (now Challenger Energy)
- Conducted exploration efforts and seismic surveys.
- Drilled an exploratory well in 2020–2021 (the Perseverance #1 well).
- The well did not yield commercially viable oil.
- Operations drew strong environmental opposition due to the ecological sensitivity of Bahamian waters.
4. Environmental Concerns
- Environmental groups and many citizens strongly oppose offshore oil drilling due to:
- Risks of oil spills
- Damage to marine ecosystems and coral reefs
- Impact on tourism and fishing
- The government has been cautious, especially after pressure from climate change advocacy.
5. Renewable Energy Transition
- Due to its high dependence on imported oil and climate vulnerability, The Bahamas is investing in:
- Solar energy
- Wind energy pilots
- Energy efficiency programs
- The long-term goal is to reduce fossil fuel dependence and align with global climate resilience goals.
