Rich Oil Estate

Dec 17, 2022 Editorial

Kaieteur News – Guyanese could have had a lot to love about John Hess, the CEO of Hess Corporation, a member of the ExxonMobil-led consortium operating in our offshore oilfields. The man is such a fantastic advertisement for Guyana and its oil that he qualifies to be a one-man tourist board for this country. On almost every occasion that John Hess opens his mouth, the words keep tumbling out like if from a waterfall, and they are all good. He is the best oil commercial that Guyana could ever have.

Our only hang-up with the sweet words of Mr. Hess is that they are only good for his company, and his fellow partners in crime offshore Guyana. They are finding oil by the billions of barrels, 11 billion so far, and with nine new discoveries for 2022 alone, the oil partners are poised to add to their proven reserves of high-quality oil. According to Mr. Hess in a recent interview with two Managing Directors from Bank of America, Guyana’s oil is the best thing that happened in the oil world in the last 10 years. Also, during an interview Mr. Hess gushed about the high probability of the 11 billion barrels already found doubling in number. Separately, he said that Guyana stands at the top of Hess Corporation’s oil portfolio, that Guyana represents ‘a fantastic rate of exploration success’ and is ‘one of the most prime pieces of oil real estate’ anywhere. This is extremely good news for the workers, and shareholders of Hess Corporation.

Absorbing all of these lovely words flowing from John Hess, it is as if he is talking of another country, not Guyana. We are living here, where all this mindboggling oil is found, and it means nothing to the small Guyanese still struggling to pay daily transportation expenses, buying basic foodstuff to feed their families. Hess’s people are living in a fantasy world that is very real, while the Guyanese people, the ones who actually own the oil, are living with the same old nightmares that have always been their lot and way of life. They, the small Guyanese man and woman, are not feeling the benefits of their oil wealth that John Hess is boasting about before the whole world. He boasts, while Guyanese roast from want and hunger; he could talk about billions in American dollars from our oil, while many Guyanese live with the harsh reality of having to make do with around five American dollars a day.

As if all the lavish things that Hess has shared are not enough, he is signaling to his investors that an announcement of ‘a major upgrade’ is pending, which could only mean more great news for his people. A major upgrade could only mean one thing: the assessments of how much oil the nine new discoveries for 2022 have confirmed that there are several billion barrels more to add to the Hess, CNOOC, and ExxonMobil oil store. When only 1 billion barrel of oil was found 7 years ago, Guyana’s take was 2% royalty. To date, the oil discoveries total 11 billion barrels and Guyana is still left holding the same measly 2% royalty bag. With more billions likely to be announced soon, it looks like the same old 2% royalty story squeezing the breath out of Guyanese, while the rest of the world look upon them, the richest people on the globe, with envy.

This is unbelievable, and we are going to jump the gun on this. With more billions of oil equivalents to come out of the Stabroek Block, it is clear that the PPP/C Government, President Ali, and Vice President Jagdeo (along with Opposition Leader Norton) are still helplessly tied to the 2% royalty and the horrendous 2016 oil contract. From our 26,000 kilometers of the Stabroek Block, the oil companies are reporting billions upon billions in profits by the quarter, and with the broadest smiles plastered all across the faces of their leaders. At the same time, Guyana is content to collect US$1B annually, while our leaders talk about ‘sanctity of contract’, and exempt the superrich Stabroek Block from proposed new oil terms. Our Politicians are not just mad, but stark, staring, mad.