The oil is ours

Dec 07, 2008 Peeping Tom

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Peter R. Ramsaroop, MBA
Chairman, Vision Guyana

INTRODUCTION:
Last year, right about this time, I first introduced the concept that any oil reserves we find in Guyana are that of the citizens, not the company nor the government. The year has passed and we have had little update on the status of our oil exploration.

I wanted to once again explore the oil formula we have proposed for the country so to keep us focused on the prize that is ahead of us and not allow ourselves to be hoodwinked by the government.

UK journalist Nicholas Shaxson says: “If citizens had the oil money in the first place, and the state had to bargain with them to get its cut, it seems likely that would change the game entirely.”

We continue to ask ourselves how our nation can have so much natural wealth but still is poor. Guyana is suffering from what academics call the ‘resource curse’.

This happens when a country’s economy becomes too dependent on primary exports like oil and sugar, sugar in our case. It’s more likely to happen in a country with institutions that lack transparency and caring leadership for all.

THE FACTS
Maclean’s Magazine of Canada has said that Guyana may be able to eventually match Kuwait’s annual oil production of 500 million barrels.

However, if only one tenth that amount is produced and royalties are 55 percent, at US$100.00 per barrel, that means an average annual payment of roughly US$3600.00 per person or US$300.00 a month. We know oil prices have fluctuated over the last year so the number needs to be flexible.

If Guyana’s oil reserves are proven and then controlled by our government, it could spell disaster for our country. With the nature of our current politics we cannot allow simultaneous control of both political and economic power. We may be able to foster long-term prosperity and peace if we can somewhat separate political favour from economic opportunity.

We have researched and written about democratising Guyana’s natural resources extracted from public property. This means that oil royalties would be dispersed evenly amongst our citizens. The government would have to accountably tax us in order to fund its operations.

To date our organization, Vision Guyana, is the first and so far the only organization to adopt this as part of their vision of a prosperous future for Guyana.

CGX Energy Inc had released an independent assessment of the probable amount of oil found in the offshore Corentyne concession. Its best estimate puts our oil reserves at 2.7 billion barrels.

However, the odds of finding no oil at all are 61 percent. This leaves a 39 percent chance of finding even a little oil at either one or both major drill sites, to be produced at Global Competitive Prices.

OUR PROPOSAL:
1. We propose that we the people get the royalties. “The People may get lazy” you say. Is that worse than the government using all the money to selectively bless others with laziness?

2. “Well people may waste the money,” you say again. Does the government have the monopoly on being wasteful? People spend according to their priorities. Governments spend money on what is politically expedient. We should be asking if people are more wasteful than the government.

3. “Well what about infrastructure?” The government will get revenue through taxation. That should be enough to build infrastructure and buy some accountability.

4. Amend our constitution to state that ALL natural resources belong to Guyana’s citizens.

5. Let each Guyanese choose at which bank to have their royalties deposited.

6. Have oil companies publicly state each payment and pay it directly to the banks.

7. Tax only withdrawals of principal to encourage saving and investment.

8. Allow banks to issue credit to citizens based on all types of income.

9. Enjoy an economy bursting with energy, life, hope and prosperity for all.

CONCLUSION
The Parliamentarians need to start debating issues that affects us, not bicker among themselves on frivolous laws.

Let us act now to secure our democracy by ‘democratizing’ our natural resources extracted from public land. This also goes for when Government gives away our properties to friends instead of providing tax relief to us.

Each Guyanese citizen will vote every day by spending or investing his or her share of the royalties in a free market economy. Nobody’s race will be an issue to someone wishing to sell or buy something.

No one’s party affiliation will affect whether or not they profit from the public natural bounty that rightfully belongs to each and every one of us.

I don’t offer this as a solution to all our problems, but this might be the one thing that makes the biggest difference in our way of life. We propose that consultation be started on exploring these recommendations.
Until next time, “Roop” .

Send comments to [email protected] or www.visionguyana.com

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