Introduction Today’s column furthers the discussion of the fiscal break-even price for crude oil. As previously indicated, this is a normative price, which is dependent on what governments figure that price ought to be, if they are to obtain the level of revenue that they need from oil to meet their expected spending requirements, while…
Introduction Under Section 31 of the Petroleum Act, official notification was given last month, by ExxonMobil and its partners (Nexen Energy and Hess Corporation), to the Government of Guyana confirming the find (discovery) of commercial quantities of oil and gas in the Stabroek Block. A few weeks later, in today’s column I conclude my commentary…
Introduction As was also described in last week’s column, the break-even price as used there, was approached from the perspective of private businesses, and in particular, those who are responsible for operating the business on behalf of its legal owners. In the case of Guyana’s oil and gas, this would be the consortium of foreign…
Today’s column continues consideration of the likely cost-price relation that might be anticipated during Guyana’s coming time of oil and gas production and export. So far, the discussion has established both indicative cost and indicative price estimates for Guyana’s oil circa 2025. It has also strongly argued: 1) 2025 is too far out into the…
Introduction: Cost-Price Relation Two weeks ago (October 23), this column had introduced as part of the continuing discussion of “Guyana in the coming time of oil and gas production and export”, the notion of the “cost-price relation” that could emerge after production starts. The reason for considering this, is that the greater is the positive…
