Self-sufficiency and scale

Jul 06, 2023 Letters

Dear Editor,

Although the pursuit of an oil refinery is admirable, we must consider the necessity of scale for operations to be profitable. This also requires us looking at the make vs. buy decision from an objective perspective.

Our past experiences as a Nation have guided us towards a self-sufficient bias. Being embargoed for a long period of time did instill in all of us who experienced it an appreciation for being able to innovate and produce our own. For this reason, I can appreciate the Government’s desire to build our own production capability and produce our own goods in a variety of sectors.

If the objective and purpose of Caricom is to be achieved and fully embraced, we must look at our capabilities from a regional perspective in order to create the needed scale in demand and in order to prevent duplication of effort. The building of a refinery for our oil sector does raise the question of Trinidad, and its purpose as a partner within Caricom.

It would be in the best interest of the Government and Caricom to have an in-depth discussion on the pros and cons of such an undertaking. I am certain that a mutually beneficial arrangement can be made where the excess capacity currently available in Trinidad can be put to use with the involvement of Guyanese workers to obtain a price for the end product that ensures the desired return on investment that would have been achieved from having our own installed capacity.

CRG encourages the Ali Administration to relook at all available alternatives before making a final decision on how to refine the oil from the Sector.

Best regards,

Mr. Jamil Changlee

Chairman

The Cooperative Republicans of Guyana

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