The islands of the Caribbean basin are predominantly net energy importers, with the exception of Trinidad and Tobago, which is a major exporter of liquefied natural gas (LNG). Venezuela provides a sizable amount of crude oil and refined products to its Caribbean neighbors at below-market prices and with favorable financing terms under the Petrocaribe initiative. Some islands are important centers for oil refining and storage, due to their proximity to the U.S. market.
In recent years, there has been concern that higher global oil prices will impair the Caribbean economies, as they are highly dependent upon oil for their energy needs. In response, the island nations have been discussing ways to promote alternative energy sources and better integrate their energy sectors.