Many small, open hydrocarbon-rich developing economies commonly possess insufficient technical andfinancial capacity to fully extract their hydrocarbon resources. Hence, these governments commonlyencounter the policy dilemma of designing a competitive hydrocarbon fiscal regime, which delicatelybalances the policy objective of earning a fair share of their natural resource wealth with theprofit-maximizing interest of the multinational hydrocarbon companies. The hydrocarbon-richWestern Hemispheric region, including the Caribbean, face similar challenges. All oil- and gas-richLatin American and Caribbean countries rely heavily on foreign direct investment (FDI) to extract theirhydrocarbon resources and develop their downstream sector. This FDI can shift between countries andjurisdictions that offer attractive fiscal terms to explore, extract, and process the host country’shydrocarbon resources.