Pompeo’s visit is more about Exxon and the US economy than Venezuela

Sep 17, 2020 Letters

Dear Editor

It is my belief the reason such a high official as the Secretary of the United States, Mike Pompeo, to visit Guyana is about our oil and Exxon Mobile stand on the lopsided contract signed by the previous Government of Guyana.

The US Secretary of State is second in command after the President and for such a high official of the greatest country on earth to visit a small struggling country like Guyana has to be more than a simple matter as border dispute, and more about Exxon and the economy of the United States. Below are excerpts garnered online:

“Exxon Mobil (XOM) is getting booted from the Dow Jones Industrial Average while oil prices remain low. Take a look at Exxon earnings and the XOM stock chart. On July 31, Exxon reported Q2 loss of 70 cents, after excluding an inventory valuation gain from rising commodity prices. Analysts expected a loss of 63 cents. Revenue fell nearly 53% to $32.6 billion, also missing Wall Street views. Production fell 7% to 3.6 million barrels of oil equivalent per day.”
Gillian Rich (8/25/2020)

“That’s because the overall financial and economic system is flashing between recession red signals and yellow warning signs as it works through the coronavirus crisis, which choked the longest economic expansion on record. States nationwide enacted stay-at-home orders forcing businesses, restaurants, offices and retailers to close, eroding consumption and putting what’s perhaps 1 in 4 U.S. workers on unemployment benefits.”
From ‘The US economy is on the verge of a recession’ by Sarah Foster (8/12/2020)
Samantha Azzarello, global market strategist at J.P. Morgan Asset Management:
“It’s a domino effect: The longer this goes on, the cracks get a bit bigger. The policy response to COVID-19 is what caused the actual recession. It was a policy choice to shut down the economy. We’re getting hit all at once now.”

The US Secretary of State visit is of importance to the US and Guyana will be put between a rock and a hard place. Oil don’t spoil, but If we are to have any semblance of a better deal on the extraction of our oil by Exxon Mobile, our leaders while insisting on a better deal should see caution as better than rash courage.

Yours truly,
Gloria Holder

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