Latest update September 11th, 2026 10:26 AM
Apr 16, 2023 News
Kaieteur News – The newest petroleum business venture the government of Guyana is promoting is the construction of an oil refinery at Crab Island.
Such a facility could bring significant benefit when it comes to Guyana’s quest for energy security. But with the opportunities comes environmental risks like nothing Guyana has ever experienced. The environmental dangers of oil refineries, especially poorly managed ones, are well documented. Kaieteur News will focus on key examples that demonstrate these dangers.
Building an oil refinery in Guyana could have a significant impact on the environment, particularly in terms of air and water pollution. Refineries release a variety of air pollutants, including carbon dioxide, sulfur dioxide, nitrogen oxides, and particulate matter. These pollutants can cause respiratory problems, heart disease, and other health issues, especially for vulnerable populations such as children, the elderly, and those with pre-existing health conditions.
One study relating to a Taiwan community near an oil refinery and coal power plant determined that elder and female residents living within 10 kilometres (km) of the complex had higher carcinogenic exposure and cancers than those living further from the complex after it had been operating for a decade. (https://www.sciencedirect.com/science/article/pii/S1438463917302912)
In addition to air pollution, refineries also generate large amounts of wastewater, which can contain toxic chemicals such as benzene and heavy metals. These chemicals can contaminate nearby water sources, posing a risk to human health and wildlife. Moreover, if not properly treated, wastewater can also contribute to eutrophication, a process whereby excess nutrients in water bodies lead to harmful algal blooms and the death of marine life.
In January last, an environmental watchdog called Environmental Integrity Project released a report on water pollution from refineries in the United States. (https://environmentalintegrity.org/wp-content/uploads/2023/01/Oils-Unchecked-Outfalls-03.06.2023.pdf)
It said there is compelling evidence that refinery discharges pose real threats to public health and aquatic ecosystems. For example, the watchdog pointed out that, near the BP Whiting Refinery’s outfall into Lake Michigan in Northern Indiana, surfers and swimmers at a nearby beach report rashes, hives and infections. It also said that the thousands of pounds of a heavy metal (selenium) discharged by refineries into waterways every year is likely the cause of a spinal deformity observed in some fish. According to the US Environmental Protection Agency, selenium can cause reproductive impairments in aquatic life.
Another concern is the potential for oil spills during the transportation and storage of crude oil and refined products. Even with the most rigorous safety measures in place, accidents can happen, and oil spills can cause lasting damage to the environment. A spill could contaminate local water sources, devastate marine ecosystems, and harm the livelihoods of fishermen and other coastal communities.
For example, in January 2022, nearly 12,000 barrels of crude oil spilled into the sea offshore Peru. The spill came from an oil tanker that was unloading crude at La PamPilla Refinery, owned by Repsol. Euro Green News reported that the slick affected more than 174 hectares of beach, killing birds, sea lions and penguins. But even worse was its impact on people. The publication said more than 700,000 people are thought to have been affected and dozens of businesses forced to close. Thousands lost their livelihoods. (https://www.euronews.com/green/2023/01/05/ecological-disaster-spanish-energy-giant-repsol-hit-with-further-55m-fine-for-oil-spill-in)
While being cognizant of the economic benefits to Guyana, it will be critical for Guyana and the operator of the refinery to carefully manage these potential environmental risks.
Several companies have thrown in bids to build the refinery, which government intends to be modular, and able to process 30,000 barrels of crude per day. Government intends for the facility to be owned and operated by the private sector, with no investment or ownership role for the government.
Vice President, Dr. Bharrat Jagdeo said the decision to encourage the project is motivated by a desire for Guyana to become energy secure. No decision has been taken yet on the way forward with this venture.
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