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…

Introduction Today’s column addresses price, in the cost-price relation that Guyana’s oil and gas ‘discovery’ will likely encounter, after it comes on stream 5-7 years from today. Like last week’s treatment of cost in the relation, today’s treatment is also indicative. This underscores the difficulty of determining oil prices so far into the future. Economists…

Introduction Today’s column addresses the “cost-price relation”, likely to emerge as Guyana transforms its oil and gas “discovery” into an industrial success. To remind readers, this is the third of four features of Guyana’s “discovery” singled out for further amplification. The present column starts with cost and continues with price next week. Clearly, at this…

Introduction Today’s column is primarily aimed at amplifying those references, which were made last week to the dynamic features of Guyana’s ‘potentially massive’ oil and natural gas discovery. To recall, the four features mentioned, were 1) the physical/geological characteristics of the discovery; 2) going forward, the ownership, control, and organizational responsibility for producing and exporting…

In today’s column I introduce the second topic in the series appraising Guyana’s economy in the coming time of oil and gas production and export. This topic will be presented in two parts. First, I provide a brief delineation of the oil and gas discovery, based on company releases and reportage in industry publications. Second,…

Introduction Based on the medium and long-term outlook of the world’s energy market, today’s column introduces two further policy lessons to guide Guyana’s planning for future oil and gas production and export. These are 1) the anticipated fuels mix over the long-term (to 2040); and 2) the probable global market impact of a stricter regimen…