There is need for hurried oil development

Sep 13, 2018 Letters

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

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