Latest update April 17th, 2025 9:50 AM
Don’t let Jagdeo fool citizens: only the well-placed are benefitting
Dear Editor,
Once again, the VP holds a press conference and tries to hoodwink the Guyanese people that everybody is benefiting from oil. Well, allow me to share with the citizens of Guyana some thoughts I had on who is really benefiting from Guyana’s oil.
Editor, Guyana starting exporting oil in December 2019. At that time, ExxonMobil, the parent company of Exxon Guyana shares were trading at a December high of $70.54 US. Please note that I chose the highest price in December because I am not aware of the exact date Guyana started selling its share of oil. At the close of trading today ExxonMobil shares were trading at $117.49 US.
If you were an investor in ExxonMobil (XOM), in particular an institutional investor, who incidentally are the largest shareholders in ExxonMobil, and let’s say you invested $10 Million US in Exxon, you will have at $70.54 US, exactly 141,763.54 shares. Today, those shares would be worth $16.7 Million US, a ROI of 67%, or an increase of $6.7 Million US. In just four years. Co-incidentally, large businesses in Guyana net profits have increased on average 67% also. On average an increase of $5.5 Million US.
High net worth individual investors that invested, say $1 Million US in December 2019, would have acquired 14,176.35. Today, that investment would be worth $1.66 Million US, an increase of $665,000 US. In comparison, their equivalent in Guyana; politicians, heads of government agencies and well-placed professionals have seen their salaries increased, on average by $60,000 US.
An average investor that invests $100,000 US in ExxonMobil shares in 2019, today, that investment is worth $166,557.94 US, an increase of $66,557.94 US. An average a public servant in Guyana minimum wage in 2019 was $4,200 US, today its $4,500 US, an increase of $300 US.
So, who exactly is benefiting? Certainly, not the average Guyanese, but ExxonMobil Investors and the businesses, well placed professionals’ and the politicians.
Do not let that know-it-all psuedo economist fool you. My father was so right when he said, “he who knows not that he knows not is a fool”.
Sincerely,
Brian Thomas
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