Latest update February 8th, 2025 5:42 AM
Latest News
- Soaring gold price entices Canadian company to renew permits in Guyana
- Terrence Campbell accuses Govt. of weaponizing Police Force after calls for accountability with oil revenues
- China slams US as Panama quits Belt and Road Initiative
- Guyana extradites fugitive to Canada
- AFC Leader Nigel Hughes welcomes any investigation into lands he acquired
There is need for hurried oil development
Dear Editor,
There is a view that the multiple production projects that will be taking place offshore Guyana – with first oil in 2020 and five potential projects by 2025 – is too rapid a pace of development and this should be slowed.
At the current rate, Guyana, according to Exxon, could be producing as much as 750,000 barrels of oil per day by 2025, raking in billions of dollars for the economy – billions of dollars we do not have and desperately need. Those who share the view that the production should be slowed must not know how badly we need this revenue to develop our economy and society.
There is the old saying that it is better to ‘make hay while the sun shines’. In the world of oil production, the sun is shining – for now. This includes favourable oil prices, manageable production costs, and a stable environment. But as history has shown, there is no guarantee that this will continue. And, many experts believe that the days of consistently high oil prices are behind us, and oil in itself will eventually be replaced as the primary energy source.
If we don’t monetize our resources quickly, we could end up holding fool’s gold instead of real gold.
Then there is the urgent need for development in Guyana. Crumbling infrastructure, limited and below par health care, poor electricity and water supply, are but a few of the shortcomings that require immediate attention.
It therefore seems that the wise approach is not to slow down the development of Guyana’s vast oil reserves, but for us to keep up with progress. It will require lots of work in the next year and a half, but we can do it.
Government must hire a number of real experts who can provide carefully considered advice and direction on how Guyana can maximize the benefits of oil revenue. The Sovereign Wealth Fund must become operational in short order. The Petroleum Commission must come into existence.
A vision for how the billions of dollars will be invested in a manner that benefits the present and future generations must be crafted.
Sincerely,
Clement Smith
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Due diligence on investments must become a priority
Peeping Tom… Kaieteur News- In 1985, the Forbes Burnham government looking for economic salvation, entered into a memorandum... more
OAS Secretary General Election and renewed OAS Consensus
Antiguan Barbudan Ambassador to the United States, Sir Ronald Sanders By Sir Ronald Sanders Kaieteur News- The upcoming election... more
Weekend Cartoon
