Our generations will not put up with this plundering

Mar 14, 2018 Letters

DEAR EDITOR
Everyone is giving an opinion as to what total income is to be derived by way of Oil and Gas exports. We see an enigma of calculations coming from conjecture. Has anyone seen the Government’s official statement of real income projections based on actions with ExxonMobil?
Based on published information where ExxonMobil will pump half-a-million barrels per day, this works out to 182.5 million barrels per year. Sale of this at US$64 per barrel would amount to US$11.680 billion per year. Royalty at 2 per cent gives US$233.6 million; equivalent to 3.65 million barrels.
As we consider US$7 billion over the 40-year length of the project on a pro-rata basis, the yearly amount is US$175 million. Putting these two rates together results in US$408.6 million.
As we know, this figure is not a constant, going up and down with the vagaries of the market and affected by inflationary pressure values that are unpredictable. On the lower and lower price of the product, it is important to note there is no Stop Button on this oil discharge, so we will have an oil diarrhea condition producing great losses.
Oil and Gas are interchangeable assets absolutely crucial for the Capital developments, sorely needed for the country’s progress, and should not be sold as though we are Fur Traders of 200 years ago.
Nowhere do I see 37+ per cent gain for Guyana as recently published in Stabroek News.
Sight of the above is seriously depressing and nauseating. Our generations will not put up with this plundering. Guyana does not need a one-crop economy. Indeed our agriculture capacity far exceeds the paltry sums displayed above. We’d better get cracking in this direction.
Norway has a Trillion dollar Sovereign Wealth Fund surely made possible by a vast scope of Industries greater than the 5.7 billion barrels of oil reserves detailed in The World Almanac and Book of Facts. Some indications for Guyana Oil & Gas reserves show many times that amount.
If ExxonMobil and others cannot come forth with respect, there is no need for them to be in Guyana, or we will be cursed by all future generations. As we can see, our wealth will make us more enemies than friends.
John De Barros

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