ENERGY HIGHLIGHTS      RELATIONS WITH THE U.S.      PUERTO RICO AT A GLANCE

The U.S. Commonwealth of Puerto Rico is located in the Caribbean Sea about 1,000 miles southeast of Miami, along a key shipping lane to the Panama Canal. It comprises the main island of Puerto Rico, plus two smaller islands (Vieques and Culebra) and numerous smaller islets. Puerto Rico relies on imports (mainly petroleum, plus some coal) for nearly all of its energy needs. Hydropower and other renewable energy supplement imports. Future energy sources include liquefied natural gas (LNG) from Trinidad. There may also be some potential for onshore and offshore oil resources.

Energy Highlights

Overall Energy Situation. Oil is the dominant fuel in Puerto Rico's energy mix, accounting for 97.5 percent of total primary energy consumption (0.36 quadrillion Btu in 1994). Coal supplies only about 1.6 percent of the Commonwealth's energy needs and hydropower, less than 1 percent. Puerto Rico lacks domestic hydrocarbon reserves and relies on imports for nearly all of its energy requirements. Per capita energy consumption is much lower than in the mainland United States (97.9 million Btu versus 342.2 million Btu for the United States as a whole in 1994).

Oil. Puerto Rico consumed 170,000 barrels per day (b/d) of petroleum products in 1994, mostly for transportation and electric power generation. Based on import data for 1995 and 1996, apparent consumption is falling (averaging 135,000 b/d in 1995 and 105,000 b/d in 1996). In 1996, Puerto Rico imported 131,000 b/d of oil (57,500 b/d of crude oil and 73,500 b/d of petroleum products) and exported 26,300 b/d of petroleum products. Most of the product exports went to the United States. The mix between crude oil and product imports is shifting, however, as refineries respond to low profit margins. As of January 1, 1997, the only operating refinery with crude distillation capacity was Sun Oil Co.'s 85,000 b/d refinery at Yabucoa (on the southeastern coast). Another refinery, Caribbean Petroleum Corp.'s 45,000 b/d refinery at Bayamon, has been idle since April 1995. In December 1996, Sun Oil announced plans to eliminate about 50,000 b/d of fuels production from crude feedstock at Yabucoa and focus, instead, on making lubricants from intermediate products, such as vacuum gas oil and reduced crude. Sun Oil has indicated it plans to meet its gasoline, residual fuel, and other obligations from cheaper sources (mainly product imports from the U.S. Gulf Coast, the Virgin Islands, and Venezuela). The island also has independent petroleum product storage capacity of 9 million barrels, which is currently underutilized (2.5 million barrels in storage as of July 3, 1997).

Natural Gas. Puerto Rico currently consumes no natural gas but plans to begin importing liquefied natural gas (LNG) from Trinidad for a joint venture power plant.

Coal. Puerto Rico consumes 190,000 short tons of coal annually (based on 1994 data), all of which is imported.

Electric Power. The Puerto Rico Electric Power Authority (PREPA) is the primary producer and sole distributor of electric power in Puerto Rico. In 1995, power plants with total generating capacity of 4.465 million kilowatts (4.38 million kilowatts thermal, 0.085 million kilowatts hydroelectric) supplied 17.34 billion kilowatt hours of electricity (17 billion kilowatt hours thermal, 0.34 billion kilowatt hours hydroelectric). Nearly all of the thermal capacity is oil-fired. PREPA also purchases excess power generation from cogenerators, primarily in the cement industry. A 248-megawatt combustion turbine plant opened at Arecibo in 1997. Planned capacity additions over the next 2 years include a 461-megawatt LNG plant, a 413-megawatt coal plant equipped with clean coal technology, and an additional 176 megawatts from the repowering of units at a PREPA steam plant in San Juan.

Renewable Energy. Since 1982, the U.S. Department of Energy (DOE) has funded numerous small renewable energy research and development (R&D) projects in Puerto Rico. Most recently, DOE provided $200,000 to the University of Puerto Rico to conduct a study of sugar cane as a possible source of biomass power. DOE's involvement is in response to legislation enacted in 1980 which recognized that "the Caribbean and Pacific insular areas of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Northern Mariana Islands, the Federated States of Micronesia, the Marshall Islands, and Palau are virtually completely dependent on imported sources" of energy and directed the Secretary of Energy to prepare "a comprehensive energy plan with emphasis on indigenous renewable sources of energy" for these areas (Public Law 96-597). DOE submitted a study of these areas to Congress in December 1982 (The 1982 Territorial Energy Assessment). Examples of renewable energy systems already in place in Puerto Rico include a cogeneration plant that uses sugarcane waste, a 100-kilowatt photovoltaic installation at Juana Diaz, and the installation of 40,000 solar water heaters.

Environment. Puerto Rico's 1994 carbon emissions totaled 6.49 million metric tons (0.1 percent of total world emissions). On a per capita basis, emissions are only about one-third as great as emissions for the United States as a whole (1.8 metric tons per person, compared with 5.31 metric tons per person for the United States). Puerto Rico's long-term energy policy emphasizes environmental safety, energy conservation and consumer education, diversification of energy sources, and transportation initiatives to reduce energy demand. In fiscal year 1997, Puerto Rico received $9.5 million from the U.S. Department of Transportation for its Urban Train project to reduce vehicle usage in the San Juan metropolitan area (home to 40 percent of the island's population).

Energy-Related R&D. DOE has an ongoing project with Puerto Rico to develop its energy-related research capability and, at the same time, address local needs for high-efficiency, environmentally safe energy alternatives. To achieve these objectives, Puerto Rico is supporting the establishment of three research clusters: High Energy Particle Physics; Novel Thin Film Materials for Optoelectronics Applications; and Catalytic Processes for Photo-oxidation, Combustion and Environmental Detoxification. The project is part of the Experimental Program to Stimulate Competitive Research (EPSCoR), which is funded through the National Science Foundation and managed by the EPSCoR Interagency Coordinating Committee (EICC). In June 1997, DOE signed a $1.5 million agreement with the University of Puerto Rico to extend EPSCoR-related research for 2 years.

Relations with Mainland United States

Puerto Rico's economy is highly integrated with that of the mainland United States and benefits from U.S. tax incentives and duty-free access to mainland U.S. markets. In fiscal year 1994-95, about 65 percent of Puerto Rico's imports came from the mainland United States, and nearly 90 percent of its exports were destined for U.S. mainland markets. Politically, residents of Puerto Rico are U.S. citizens but do not vote in Presidential elections. They are represented in Washington by a Resident Commissioner in the U.S. House of Representatives whose voting is limited to committee actions. Puerto Rico's political status is an ongoing issue. In a 1993 referendum, 48 percent of Puerto Rico's voters opted to retain commonwealth status, 46 percent supported statehood, and 4 percent advocated full independence from the United States.

Puerto Rico At a Glance
Governor: Pedro Rosello
Resident Commissioner/Representative to U.S. House of Representatives: Carlos Romero Barcelo
Population (7/96): 3.8 million
Area: 3,500 square miles (almost three times the size of Rhode Island)
Capital: San Juan
Ports: San Juan, Guanica, Guayamilla, Guayama, Playa de Ponce
Languages: Spanish, English
Currency: U.S. Dollar
Gross Domestic Product (GDP, 1995E, purchasing power parity): $29.7 billion
Per Capita GDP (1995E): $7,800
Real GDP Growth Rate (1995E): 3.3%
Major Industries: Pharmaceuticals, electronics, apparel, food, instruments, tourism
Exports Outside the United States (1996): $5.2 billion
Major Export Markets Outside the United States: Germany, Canada, Dominican Republic, Japan, France

Links to other sites:
1997 CIA World Factbook - Puerto Rico

The following links are provided solely as a service to our customers and therefore should not be construed as advocating or reflecting any position of the Energy Information Administration (EIA) or the United States Government. In addition, EIA does not guarantee the content or accuracy of any information presented in linked sites.

Institute for Puerto Rican Policy
National Science Foundation, Science and Engineering Profile (requires Acrobat Reader, which can be downloaded from here)

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File last modified: September 24, 1997

Contact:

Douglas MacIntyre
dmacinty@eia.doe.gov
Phone: (202)586-1831
Fax: (202)586-9753