Many of the world’s oil producers have recently agreed to cut back oil production by 10 million barrels a day. The world is in quarantine mode. Demand for oil has dropped significantly. If demand drops and supply stays the same, then the law of demand and supply would tell us the price of a commodity…
Over the last few weeks, Exxon has been busy reassuring its shareholders they will receive their dividend cheques and donating meals and cash to those in need in New Mexico and Texas. This signals where Exxon’s priorities lie, in terms of those who benefit from the profits of its operations, and it is clearly not…
The Coalition has been plying a narrative, over the last few years, that we should accept the atrocious oil deal with Exxon because the US would help defend the company and our country against Venezuelan aggression. But it is now hard to contemplate that the coalition believed its own rhetoric. Given its recent defiance of…
I am a professional Engineer and some of my undertakings were to design, build, prepare contract documents of processing plants that take raw material from the earth, and process to a consumable product.I also built the first natural gas station in Trinidad with the help of the late Mr. Manning, a geologist and former Prime…
Global Witness has revealed that Guyana stands to lose at least US$55 billion from the current 7.9 billion barrels in the Stabroek Block. The major political parties have not indicated that they will renegotiate the atrocious Stabroek oil contract. But the Guyanese people have other choices. Leaders of both the Change Guyana party and the…
Please allow me to comment on your article in yesterday’s SN: `Guyana’s first million barrels of oil is closer – still no word on price.’ Once one peels away the legal mumbo jumbo and pretensions, the oil contract clearly says that profit oil is valued by the monthly average of the spot market price. You…
There are many tricks the salesman has studied to close a lucrative deal. These range from projecting a sense of authority; playing the reciprocation game; and creating a sense of urgency. In the negotiations with the oil companies, we have fallen prey to these social psychology tricks. We need to recognise these tricks to avoid…
The oil companies appear to be pressuring the government to approve the Payara project. Before we proceed with any more approvals, we should clarify mathematical anomalies between Liza Phase 1 and Liza Phase 2 that may save us billions of US dollars; verify the pre-contract costs; hire qualified people and create the institutions/regulations so we…
The humble fruit vendor selling at Bourda Market understands the difference between price and value. She grasps the value of her golden apples and sweet mangoes. She prices them at or above their fair value. She knows the prices of inferior produce and how far potential customers would have to travel to purchase her quality…
Where in the Stabroek petroleum agreement is it stated that the oil companies receive 98% of revenues per month?On Thursday November 7th, 2019, the press reported that the Exxon will take the first three liftings of oil. The press indicated each lifting is one million barrels. Assuming oil price per barrel of US$60, the total…
