Opinion
Chicken feed money and cost issues
The previous six columns asked the question whether Guyana could escape the natural resource curse. We have looked at the issue from various dimensions. In particular, we have observed that initial conditions prevailing in Guyana must be taken into account when making such a prediction. The present structure of the production economy and limited economic…
Trotman’s 2016 re-negotiation of the PSA with ExxonMobil has put government in a serious predicament
King Midas, it was said, had only to touch something for it to turn to gold. The Minister in charge of Guyana’s oil has perfected this talent in reverse: – The Minister’s 2016 re-negotiation of the PSA with ExxonMobil is a disgrace. It has put his government in a serious predicament and could prove a…
The state of the six sisters (rice, sugar, bauxite, gold, seafood, and forestry) versus oil
Over the past few years, the Guyanese economy revealed an economic illness that is tied to the state of the six sisters (rice, sugar, bauxite, gold, seafood, and forestry). There are tremendous external headwinds as the rest of the world pull ahead leaving the Guyanese economy in a sort of no-man’s land. Real GDP growth…
Oil and the Environment: EEPGL EIA Liza Phase 1
Melinda Janki asks some pertinent questions about the Environmental Impact Assessment (EIA) for ExxonMobil’s Liza Phase 1 project. She identifies ‘data deficiencies’ in the profiling of marine species, compares the EIA to the requirements stipulated in Guyana’s Environmental Protection Act and analyses the oil spill scenarios in the EIA against the benchmark the actual spill…
Guyanese will be seen as ‘the idiots of the world’ if Exxon contract not changed
Quote: “This obnoxious, objectionable and invasive Petroleum Agreement starts and ends with Exxon’s Esso. Guyanese must not be ensnared by Exxon and our politicians who seem to be compromised in Exxon’s tentacles. Guyanese must be made to speak and act for the Guyanese people. Once we have the agreement renegotiated with Exxon; the other Oil…
ExxonMobil agreement should be renegotiated before new deals with other companies
Warren Buffet: “You cannot produce a baby in one month by getting nine women pregnant.” Agreeing to more oil agreements will not compensate Guyana for the unpatriotic Petroleum Agreement with Exxon, Hess and CNOOC. What we need is to renegotiate the June 27, 2016 Petroleum Contract – posthaste. Thus, the Stabroek News article dated March…
Could Guyana escape the natural resource curse? Part 6: Oil and other sectors
The previous column explored how the lack of economic research capacity might have contributed to the lopsided contract in favour of ExxonMobil. One misconception that is often expressed in various Guyanese quarters is observers like yours truly never worked in the oil industry, therefore, we do not know about negotiating a PSA-type oil contract. Indeed,…
The oil agreement is burying the hopes of Guyanese
The headline that caused me grave dismay was, ‘Exxon Contract ‒ Final –Harmon’, published in Stabroek News and dated February 23, 2018. On reading the headline, several thoughts overcame me: President Jagan would have absolutely rejected this contract; President Burnham would have never given away our birthright; Walter Rodney would never go against the people….
Guyana paying ExxonMobil to exploit its resources
Chartered Accountant, Nigel Hinds said that ExxonMobil has been able to outsmart Guyana. He said that the company is now making Guyana pay it to exploit its resources when the company should be the one paying. Guyana is now hurrying to put measures in place to monitor and assess cost recovery claims. However, it has…
10% royalty on oil production should be Guyana’s top priority
In order to capitalize on oil discovery here, the Government of Guyana must renegotiate the current petroleum agreement with ExxonMobil and its affiliates to reflect an increase from a two percent royalty to 10 per cent. This view was shared by Chartered Accountant, Nigel Hinds, who provided Kaieteur News with a detailed breakdown of opportunity…