DELUSIONAL OVER OIL

Sep 16, 2017 Editorial, Features / Columnists

The US oil giant, ExxonMobil, has found oil in large quantities offshore Guyana. The discovery of oil has seen a litter of consultants parading the streets of Georgetown as the nation grapples with the problems associated with the environment presumably from an oil spill. According to Government officials, the consultants are experts who are international qualified advisers in the field of oil exploration.
The officials have assured the nation that everything will be done to protect the interest of the country. However, having oil consultants is not a guarantee that oil will lead to the development of the country.
The Ghanaian government had several foreign consultants to advise it on oil exploration in the 1970s. After three years of production, the government realized that the potential revenue from oil that should have served as a catalyst to drive investment and create jobs in the country may have been overestimated.
Initial expectations were that Ghana would have produced 225,000 barrels of oil a day; it did not happen. The discovery of oil in Ghana was seen by many as a blessing that should have served as a catalyst to drive investment and create jobs. It should have improved the lives of the people in the country. It did not happen.
Today, Ghana remains poor; its roads are full of potholes; blackouts are constant, jobs are scarce, and poverty is widespread. The country is bankrupt and bribery and corruption have ruined its development.
Liberia which also had several foreign oil experts to advise the government on oil exploration by ExxonMobil is experiencing similar problems like Ghana. When oil was discovered in Liberia, Liberians had believed that the revenue from oil would lead to development and improve their lives; they were wrong.
Liberia is much poorer today than before. Not only is the country’s development stalled, but it is also bankrupt and cannot pay the interest on its loans. Unemployment is high, poverty is extensive, corruption and bribery are rampant, its infrastructure is in poor shape and there is hardly any social services.
Several other countries including Angola, Equatorial Guinea, Gabon, Libya, Nigeria, and Sudan continue to experience similar problems following their discovery of oil by ExxonMobil. The reason is that most foreign entities such as ExxonMobil are interested more in profits than improving the lives of the people or protecting the environment.
The lack of oil revenues to prop up these countries’ individual economies have led to high unemployment, underdevelopment, huge budget deficits, double digit inflation, widespread poverty and crime.
However, relying on foreign oil experts has raised serious questions about Guyana’s oil revenues and their intended use. There is ample evidence that some of our politicians are prone to bribery and corruption and that ExxonMobil has a track record of bribing prominent officials in several countries in order to get its way.
It is more concerned with the maximisation of profits than with the environment or the lives of the people. Those in authority should not delude themselves into believing that ExxonMobil will not violate the contract, which has not been released to the public.
The government should learn from the mistakes of those oil-producing nations so as not to repeat them. While we are not pessimists, we cannot deprive our minds from the fact that corruption had bedeviled Guyana for decades. It will be a surprise if our leaders behave anyway different from those in Africa in terms of accountability and transparency. But instead of judging them, we should wait and see if oil will be a blessing that would provide a better life for all.

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