Cash distribution of oil wealth

Oct 12, 2019 Letters

DEAR EDITOR,

It is with pleasure that I read of the discussions concerning cash distribution and am pleased that I was able to provide some inspiration to Dr. Thomas for pushing this issue. In reference to the proposal I presented in February 2018 via the letter “How much is it really worth?” I would caution those utilizing the $1M annual figure to relook at the assumptions that established the base of my estimate for each household. Although the range is wide and the suggested number of $3200 per day per household or approximately $1M per year per household is highlighted, some of the key assumptions to consider are the estimated total base of oil, the 50% split with government needs prior to disbursement and the life of the industry. As I had mentioned recently, via a letter at the beginning of the month “It has become apparent we need to relocate our coastal population”, the long term strategic plan for utilization of the sovereign wealth fund needs to be established with the following underlying key priorities to better outline the investment posture of the entire economic portfolio:
1. Relocation of the long term affected on the coast,
2. Reestablishment of a sustainable capital and 3. The defense of current key assets along the area that will be impacted by climate change over the long term.
The establishment of the supporting strategic plan will allow for clarification and confirmation as to how the funds should be split between private distribution and government needs. Thus resulting in the range of income that each household could benefit from over the life of the oil industry.
It would be my pleasure to help a bipartisan parliamentary group develop such a long term strategic plan in the near future.

Best regards,
Mr. Jamil Changlee

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