Oil storage facilities are needed

Nov 29, 2025 Letters

Dear Editor,

CRG recommends that the Government of Guyana consider building its own oil storage facilities to allow for the stockpiling of crude oil when prices are low. The additional storage capacity will also allow for other regional producers to have access to affordable storage capacity in the Region.

During the last price drop in crude, it was very difficult for many to find available storage. If the financial modeling results in a positive net present value at the required rate of return, the project should be undertaken with all of the necessary safeguards in place to ensure that there is minimal risk to the merchandise while it is being transported to storage, while it is in storage and while it is being transported away from storage.

Exxon’s supplier network should be able to provide the necessary expertise needed to construct and manage such facilities. If Guyana does decide to be a part of OPEC, it will also enable our nation to better forecast demand and supply for this commodity, thus making the decision to establish storage facilities a well-informed choice. In lieu of this, leveraging Exxon’s in-house forecasting expertise may be sufficient.

It is expected that after Venezuela achieves regime change that their oil supply will come back onto the market. This will result in increased downward pressure on oil prices and lower profitability for the industry, which will be welcomed by many countries currently battling inflation and high consumer prices.

Best regards,
Mr. Jamil Changlee
Chairman
The Cooperative Republicans of Guyana

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consumer prices, facilities, Jamil Changlee, Oil storage, OPEC

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Oil storage facilities are needed

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