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Risks and Consequences for Guyana with ExxonMobil contract
Dear Editor,
I write to you today with a heavy heart, as I fear for the future of our beloved country. The oil and gas sector has brought both excitement and apprehension to our nation, and it is crucial that we fully understand the potential consequences of the decisions being made regarding this industry.
As you may be aware, ExxonMobil Guyana is currently operating under a contract that grants them significant control over our oil and gas resources. While some may argue that this contract is necessary for the development of the sector, I urge you to consider the long-term effects of such an agreement.
First and foremost, if ExxonMobil Guyana does not relegate the contract, we risk losing control over our own natural resources. This could result in limited benefits for our country and its people, as much of the profits from the sector may be exported to other countries. Additionally, we may not have as much say in how the sector is developed and managed, which could lead to environmental degradation and other negative impacts.
Furthermore, if the contract is not renegotiated, we may be missing out on a significant opportunity to invest in our own economy. The oil and gas sector has the potential to create jobs, boost infrastructure, and stimulate other industries such as tourism and manufacturing. However, if we do not have control over the resources and profits, these benefits may be lost or limited.
In addition to economic concerns, there are also social and environmental considerations to be made. The oil and gas industry has a notorious reputation for causing environmental damage, which can have devastating effects on local ecosystems and communities. Without proper regulation and oversight, we risk experiencing similar negative impacts in our own country.
Furthermore, the development of the oil and gas sector could exacerbate existing social issues, such as inequality and corruption. If the profits from the sector are not fairly distributed or invested in social programmes, certain groups may be left behind and unable to benefit from the sector’s potential gains.
It is also worth noting that the oil and gas industry is notoriously volatile, with prices and demand subject to fluctuations and geopolitical events. If we do not have control over our own resources, we risk being at the mercy of external forces and unable to adapt to changing market conditions.
In light of these potential consequences, I urge ExxonMobil Guyana to relegate the contract and work with the government and people of Guyana to ensure that the oil and gas sector is developed in a way that benefits our country as a whole. This may require compromise and cooperation from all parties involved, but the long-term benefits will be worth it.
Furthermore, I encourage our government and other stakeholders to take an active role in the development and management of the sector. This includes investing in local talent and infrastructure, establishing strong environmental regulations, and ensuring that the profits from the sector are reinvested in social programs and other areas of need.
In terms of economic benefits, the oil and gas sector has the potential to transform Guyana’s economy. According to a report from the International Monetary Fund (IMF), Guyana’s GDP is projected to increase by 86 percent by 2025 due to oil production. Additionally, the sector has the potential to create thousands of jobs and boost local industries such as manufacturing and tourism.
However, these benefits can only be realized if we have control over our own resources and ensure that the profits are reinvested in our own economy. Without this, we risk becoming overly reliant on external forces and unable to sustainably grow our economy in the long term.
In terms of social and environmental impacts, there is no denying that the oil and gas industry has the potential to cause significant damage if not managed properly – remember the infamous Exxon Valdez oil spill that occurred in Alaska in 1989.
Sincerely,
Kevin Ramnarine
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