EXXON’S TRACK RECORD

Today we continue to focus on a very important topic that should be of interest to every citizen of Guyana. It is about the recently announced discoveries of more oil in the Essequibo region by the United States oil giant, ExxonMobil and what this means for our country and its people.

ExxonMobil has stated that the pumping of oil will commence in 2020 at the same time of our scheduled general elections.
It means that the oil will be monetized six years after it has been discovered, and is likely to translate into major social and economic development for the people of Guyana.
The government and people of Guyana welcome the news of the major oil find. Many believe that the government is naive into believing that the revenue generated from oil will immediately end all of the country’s current financial problems. Far from it.
Although the prospects seem quite favourable the people ought to know that Exxon Mobil is about monetary gains. It owes Guyana nothing but the duty to give the country its fair share of the proceeds.
There was an advertisement over the weekend that offended some people. It suggested that ExxonMobil was the magnet for employment. It explained conditions of work but it failed to address investment or its contributions to this country.
Exxon Mobil appears to be hiding behind its advertisements. Instead of having news conferences to inform the public about its plans and how it intends to help the country and its people, all it does is to make public statements.
Given its advanced technology, ExxonMobil has been able to find oil where other operators failed. It drilled to depths unheard of and for this Guyana is grateful. ExxonMobil has used its technology to prove to the world that Guyana could be an oil-producing country. For this, the people of Guyana are grateful.
However, Guyana is not and should not be beholden to ExxonMobil and accept whatever is offered. This country must see itself as a partner and the oil programme is a joint venture.
There are negative reports about Exxon’s operations in those countries that it conducted its exploration. These include Angola, Equatorial Guinea, Gabon, Ghana, Libya, Nigeria, and Sudan. The oil revenue did help these countries but it also spawned corruption to the extent that the leaders of some of these countries became filthy rich and there was not enough for the people.
But many thrived. Ghana is a model with its expansive road network and its satellite programme. The country was also able to fund a massive hydroelectric programme from which it sells cheap power to its neighbours after giving its own people cheap and reliable electric power.
Chad and Equatorial Guinea remain poor largely because of corruption and misuse of the funds.
The truth is Exxon Mobil is more concerned with the maximization of profits than with the environment or the lives of the people. And that is often the case of an investor in a foreign country. Exxon is at present a foreign investor.
Those in authority should not delude themselves into believing that ExxonMobil will not violate the contract, which the government has not released to the public. There is no evidence of any untoward behaviour but given its track record nothing is impossible.
But the government has been forewarned; it has been made to see the pitfalls in other countries. It knows, too, that it cannot ignore other areas of production in the wake of the oil revenue. It must, more than ever, use that revenue to boost the other areas of production. It must also not squander because as the saying goes, “Willful waste makes woeful want.”

1 thoughts on “EXXON’S TRACK RECORD”

Arenagal October 12, 2017 at 11:06 am

Step back and view everything with some objectivity here. Exxon is a company that would be looking out for its bottom line and that is profit. That’s what companies do. Is something wrong with that? No!

You don’t invest billions of $$ with the intention of coming out at a lost. What you should be concerned about is the negotiating abilities of the Guyanese government with Exxon; not trying to blame Exxon for not making sure Guyanese get jobs. I am sure there will be jobs, but not in the quantity that Guyanese may have been led to believe. On the other hand, just think, if Exxon did not find oil that was in the botton of the sea for millions of years, would you be talking about jobs in the oil and gas industry?

Look at the brighter side. With an oil industry on the horizon, there will be more opportunities to invest in supporting businesses, such as; houses, apartments, stores, shopping centers, entertainment, recreation and many other things that can drive a wider array of businesses in the local economy. I bet what’s going to happen, Guyanese will whine and complain, while forward-thinking foreign investors are going to seize those opportunities right out of your hands. Think long term 40-50 years ahead, not tunnel vision

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