The vision of the near future, enshrined in the Decade of Development Plan, is palpable and clear

Feb 25, 2020 Letters

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DEAR EDITOR,

Oil, or black gold, is arguably the most important economic resource on the entire planet. The economic fortunes of countries have been dependent on its possession, many wars have been fought over it and its availability and price are major determinants of economic growth in economies around the world. Crude oil and natural gas are primary energy and raw material sources that are critical to modern daily life and the world economy. Transportation, commerce, industry, agriculture, defence, the chemical industry and research and development in many fields are sustained by petroleum activities which have expanded over the last 150 years to meet the demand of a rapidly increasing human population, creativity and consumerism. It is well known that hundreds of products are derived from petroleum including fuels, lubricants and many consumer chemicals and products such as fertilizers and plastics; and many alternative technologies for energy generation, transportation and storage can only be realized at this time because of its diverse usefulness.
While petroleum has many important uses the environmental impact of the industry is correspondingly extensive and climate warming and sea level rise, linked to the industry’s contribution to greenhouse gas emissions, and ocean acidification, have been attributed to the sector. Emissions from the petroleum industry occur in every chain of the oil-producing process, from the extraction to the consumer phase. Gas venting and flaring, during the extraction phase, release methane and carbon dioxide, while petroleum refineries contribute large amounts of pollutants, into the atmosphere. The storage and combustion of petroleum also result in seepages and CO2, and greenhouse gas, emissions. The scale and urgency of these problems require the concerted actions of the petroleum industry, national governments and consumers to improve extraction and refining efficiency and minimizing petroleum waste products; energy conservation and diversification utilizing clean sources of energy such as natural gas, hydro, solar, wind and biomass; and utilizing energy-efficient products as obvious and effective industry, legislative and consumer actions toward achieving greater environmental sustainability. Some countries have sought to satisfy their energy security demands by pursuing nuclear energy, like Iran which is a major oil producer as is the USA which, under President Donald Trump, has advocated for an increased role for coal.
It should be noted that Guyana’s oil industry, at least in the near future, does not pose a significant threat to the environment and Guyana does not risk losing its reputation as a net positive contributor to the environment achieved largely through its contribution to the Iwokrama International Centre for Rainforest Conservation and Development and record of environmentally sustainable forest management. Oil extraction occurs over a hundred miles offshore currently utilizing one FPSO, to be increased to five by 2025, and there are no current plans for the storage and refinement of petroleum onshore. It would seem, therefore, that there is little basis for opposition to current and future petroleum activities on environmental grounds. At the level of consumption, government plans, under the Decade of Development, have identified the realization of energy security and the transition to renewable and clean energy as a principal goal including the establishment of a 188-megawatt power plant powered by natural gas and hydro power stations around the country. Government had previously adopted measures to limit the importation and use of used tyres, styrofoam and other products which disposal pose risks to the environment and have recently encouraged and incentivized the import and use of electric vehicles through duty-free concessions and the installation of charging portals across the country. David Granger has demonstrated, over and again, his commitment to being the environment and green President of Guyana and, I believe, will lead the APNU+AFC coalition to victory by a landslide in next week’s polls.
It might have been expected that the announcement of world-class oil discoveries in Guyana’s EEZ prompting industry analysts to describe Guyana as the world’s most “oil-rich country per capita” and assess that Guyana could become the second-largest oil producer in South America behind only Brazil, surpassing Venezuela, and OPEC’s 12th largest member after Angola would have generated tremendous national pride and the determination to pull together to make the best of this wonderful, if unexpected, opportunity. Guyana has already uplifted one million barrels of profit oil and is expected to earn an estimated US$300 million this year as Exxon ramps up to 120,000 barrels of oil per day (bpd) which could increase to more than US$ 5 billion by 2025 with production of more than 750,000 bpd utilizing five FPSOs in the Stabroek bloc. While multilateral agencies, like the IMF, have applauded the government’s “plans to establish a comprehensive legal framework for managing oil wealth”, and along with the World Bank and IDB are collaborating with the government in providing technical assistance and advisory services to build national capacity in the oil and gas sector much of the national discourse, as promoted by certain political groupings have pursued a narrative of government incompetence and corruption and ExxonMobil’s corporate transgressions around the globe. For more than a year following the no confidence vote in the National Assembly in December 2018 forces opposed to the governing party have championed a policy of deactivation of the National Assembly, where it purported to have majority support, and pursued government accountability in the courts and media. At the same time, it declared the government to be illegal and petitioned bilateral, multilateral and business organizations to isolate and weaken the administration. They have demonstrated a total willingness to hold Guyana’s economic development hostage to their political ambitions and goals and demanded the withdrawal of all forms of external assistance and investment.
The fact is that they did not succeed and international confidence in Guyana’s growth trajectory is manifested by the growing number of international companies seeking to invest in our country. This confidence is over-matched by the exhilarating images of the APNU+AFC re-election campaign and its political rallies across the country. The energy is immense, the enthusiasm is intense and the vision of the near future, enshrined in the Decade of Development Plan, is palpable and clear and I fully expect a massive turnout of support for APNU+AFC at these elections. This has caused me to revise upward my initial forecast that the coalition will win these elections by nine seats.
Vijaya Lakshmi Pandit, an Indian diplomat elected the first female President of the UN General Assembly, had remarked that “difficulties, opposition, criticism – these things are meant to be overcome, and there is a special joy in facing them and in coming out on top. It is only when there is nothing but praise that life loses its charm and I begin to wonder what I should do about it”.

Sincerely,
Oscar Dolphin

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