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An oil refinery in Guyana is not needed
Dear Editor,
A letter writer recently stated that the Caribbean and Trinidad do not have excess unused oil refining capacity. However, he then proceeds to show that there is excess unused capacity offline within Trinidad and the Caribbean. He even goes so far as to make the argument for the establishment of new additional capacity in Guyana instead of bringing the offline capacity back online.
I am not sure which financial model was used to support his suggestion, but in most cases it is usually less costly to bring back online something that can be repaired or has been shut down due to the lack of use vs. building a new facility and putting in place the environmental safeguards and institutions needed to support such a new undertaking, which would be a first for Guyana. There was also a complaint made over Jagdeo’s refusal to approve the project in which the letter writer has or had personal financial interest. It is important that personal financial gain is not allowed to distort the facts when making such a significant decision.
Trinidad has the experience and so do others in the Caribbean. There is a lot of oil refining capacity that can be brought online again, and these countries also have the institutional know-how to deal with the environmental issues that surround such an undertaking. Making the correct make vs. buy decision should be based on financial modeling and the business case it supports. The establishment of an additional oil refinery should also not be just a national consideration, but a regional one that is accompanied by a decision on regional oil reserves. The current chaos within Caricom may bring pause, but the effective use of the secretariat should continue. This includes Guyana’s leaders ensuring that established processes for decision making be followed to rebuild unity and prevent further discord.
Best regards,
Mr. Jamil Changlee
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