Rystad Energy another example of how foreign entities seek to exploit domestic market

Rystad Energy another example of how foreign entities seek to exploit domestic market – Chris Ram

Aug 09, 2022 News

Kaieteur News – The recent presentation by Norwegian research and business intelligence firm, Rystad Energy on the outstanding oil future that awaits Guyana, particularly over the next two decades, is yet another example of how foreign entities seek to exploit their perceived gullibility of the domestic market, says Chartered Accountant and Attorney-at-Law, Christopher Ram.

Chartered Accountant and Lawyer, Chris Ram

In an invited comment, Ram said Rystad’s Senior Vice President and Head of Latin America and the Caribbean, Schreiner Parker presented a study to citizens on Thursday last at Duke Loge which contained rather questionable information and views posing as facts.

Ram was keen to note that even Rystad’s representation of itself as a research organization is in itself misleading. Expounding further, the Chartered Accountant said it is not a research entity but a firm of consultants which sells its services to oil companies and others and markets itself by the preparation and distribution of what it refers to as studies.

“Genuine research entities take their publications seriously, almost invariably having its work peer reviewed, so that it can stand robust scrutiny. By its own admission, Rystad does not have its publications reviewed,” Ram said.

Unfortunately for presenter Schreiner Parker, this failure was brought into sharp focus when following his presentation, he had to respond to questions raised by the audience. In fact, it was Ram who challenged Parker on his study not being peer reviewed.

Ram also told Kaieteur News on Sunday that Parker’s supreme confidence in his presentation embarrassingly deserted him during question time. Unable to answer the many serious questions thrown at him during his presentation, Ram shared that Parker headed for the door almost immediately after the proceedings came to a close. “So much for his promise during the question-and-answer session to meet one-on-one with those persons who were dissatisfied with his evasive or incomplete answers,” expressed

Rystad’s Senior Vice President and Head of Latin America and the Caribbean, Schreiner Parker

Ram.

He added, “It seemed clear to me that Mr. Parker was completely unaware of Guyana’s petroleum legislation, (former Minister of Natural Resources, Raphael) Trotman’s infamous 2016 Production Sharing Agreement with Exxon, or the serious questions to which Guyanese had been seeking answers from their own government since 2016.”

Ram said too, that Parker did not seem to know too that the 2016 agreement was a post-discovery agreement which altered the dynamics of the arrangement between the government and the oil companies; nor did he understand that the petroleum laws of Guyana provide for a single agreement, and not one agreement fathering another.

The lawyer further pointed out that Parker did not seem to know the economic state of Guyana in 2015, referring and relying on statistics stale dated by decades rather than years. Ram said too that the Rystad VP did not know the potential impact which an incident at one well could have on several others operating in such close proximity; nor indeed any questions about the environment.

Ram said this was not Rystad’s first foray in Guyana. “Hopefully, this would have been an eye opener and an education to them,” the lawyer noted.

Ram said if there was one positive coming out of the presentation, it was the fact that there were among the audience, persons close to the government. “We can only hope that they would have taken back some message to their principals,” the lawyer concluded.

RYSTAD REPORT

Through the facilitation of Oil NOW and the Georgetown Chamber of Commerce and Industry (GCCI), Rystad’s Senior Vice President and Head of Latin America and the Caribbean, Schreiner Parker presented some of the key findings of the firm’s Guyana study.

At the Duke Lodge Conference room, Parker noted that government revenue from domestic production is on track to break the US$1 billion mark this year and accelerate to US$7.5 billion annually in 2030, according to Rystad Energy research. He said this year is set to be a turning point for the Georgetown government to start capitalising on the vast reserves in the offshore field, with revenues more than doubling over 2021 levels.

Parker went on to note that the government’s take from the production is expected to increase until 2025, reaching US$4.2 billion annually. The Senior VP said too that the recent spate of prolific discoveries and the steady pace of Final Investment Decision (FID) position the Guyanese government to reap the rewards of these finds with cumulative revenues totalling US$157 billion by 2040.