Guyana is not powerless, it has leverage

May 24, 2021 Editorial

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Kaieteur News – The government of this country can do one of two things: its leaders can throw up their hands in resignation and accept the status quo, which is the first and easy choice. Or they can appreciate where Exxon is in its current state, and what Guyana represents to the immediate and long-term prospects of the company. With that clear understanding, they must then move purposefully to wrest more for us, from the tight fists and tighter minds of Exxon.
The first state of mind is passive and defeatist, while the second is manifesting that the government, leaders, and peoples, of this country will not yield, will not surrender, but will continue to look at and analyze the circumstances surrounding our oil, all of them, and come to new understandings of the decisions, the hard steps, that have to be taken, to squeeze small, then larger concessions, out of the foreign oil companies, starting with Exxon. We admit that the latter is the more demanding, tougher and more confrontational approach, which could lead to unending bad blood; but is better than the present situation, and future prospects, where it is our blood alone, our lifeblood, that is being drained rapidly. It is this second option that must be prioritized and pursued, and we at this paper will press for this, never retreat from this.
The Saudi Arabians made the decisive step, and took the hard road with their fabulous oil riches. Though they were not liked for it, their people and society are extremely better for those actions. The Venezuelans did the same, under the guiding hand of Carlos Andres Gomez, and were also better for the thinking and results that came. But save for leadership missteps, political mismanagement and misdirection, that neighbouring country did not have to be where it is at, given what it has, which is estimated to be more than that of anybody else’s. The Libyans and Iranians and others took their destiny in their own hands, and leveraged what they had in their ground and beneath their sands. If they had not, then it is highly likely that those countries would have been locked in the same state of imbalance, unfairness, and impoverishment, and this despite having all the wealth with which they had been blessed.
They had leverage and they used it fearlessly and that was when such thoughts and actions were unthinkable. Let us be clear: we at this publication are in no way recommending going the full nelson and for the jugular of Exxon and others. All we say is that we have leverage at our disposal and we must use it sensibly and courageously. We have to be unflinching in our outlook, since Exxon needs us more than we need it. We have said this before, and on more than one occasion. We say it again, and this, too: when we come to that point of using our leverage, tactically and wisely, which is today, we must then be unalterable in our positions and convictions. We must not wilt or fade, in the face of the frustrations that Exxon and its kind are sure to marshal and deliver with muscle.
What we stand for and what we are saying is what Guyana’s only real oilman, Dr. Vincent Adams, said recently. Under the caption of “Exxon cannot survive without Guyana” (KN May 20), Dr. Adams has this to say specifically, “…we need to understand that, and use it as leverage…rather than have them take advantage of us.” Exxon’s financials are shakily perched. Exxon is depending on its quarterly numbers, which Guyana helps to boost the most, since the oil is so dirt cheap to produce. Exxon needs to impress Wall Street, so that its stock does not fall out of favour, and investors are rushing to sell and be rid of its burdensome cost of carry, and the stigma that comes from holding the company’s securities.
Exxon’s management is vulnerable and where it counts, namely, inside its own board of directors. This is due to intensifying pressures from powerful shareholders to perform better with the all-important bottom line, and to do something, much more, about climate change, through its environmental programme and record. Added to those are the instances of exposures and embarrassments in the courts on this most sensitive of areas, meaning, environmental irresponsibility and failure. That is the stigma. When all of this is combined, Guyanese leaders are more able to appreciate where Exxon is, and where we are. Where it is weak and where we have strengths. Strengths that must be mobilized and brought to bear, because Exxon depends so much on this country’s cheap and easy oil.
We must make it harder and less cheap for Exxon. It is where we get more, through well-thought-out strategies, approaches, and concessions. It is where Exxon still gets to reap a handsome return. We have the company by that proverbial part of its anatomy. We must make it flinch. We must use our leverage to make Exxon give us more: less expenses, more sharing, more respectful partnering.

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