Opinion
Definition of Dutch Disease, Midstream and Downstream activities
Dutch Disease explained Does a person have it? Definitely not, it is not a medical condition; it is an economic condition. In the 1960s, much natural gas was found off the coast of Holland. By the 1970s, the oil and gas rush in that country had raised the value of the DUTCH Guilders (the name of the…
How oil can place our democracy at grave risk
Guyanese should understand the goal of the oil and gas contractors: drill, extract and burn all the oil and gas resources it can acquire whenever it can in a game to balance the demand and supply globally. Guyana is just a small fish in this big pond and this is why we must always put…
Oil agreement and the President
On February 14th, the third anniversary of the Cummingsburg Accord which masterminded the victory of the APNU+AFC coalition at the 2015 general elections, President Granger was asked whether the 2016 Production Sharing Agreement (PSA) between his government and ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EEGPL) would be renegotiated. His answer did not rise…
Securing advances on oil revenues should be considered – US-based business professor
Seeking advances on future revenue from ExxonMobil should be under discussion, according to United States-based Guyanese business professor and accountant Floyd Haynes, who says the benefits for a developing nation like ours are incalculable and can outweigh the disadvantages “I think it should be considered. You are borrowing against future revenues. There are …benefits to…
Guyana Is About to Open Up Pandora’s Barrel – Expats hold the key to whether its big offshore oil deposits bring riches — or ruin.
Wedged between Brazil and Venezuela, Guyana could easily go unnoticed. It has fewer than 750,000 people and a per capita income of $4,300, half the regional average, qualifying it as the hemisphere’s third-poorest nation. At the moment, Guyana also might be its luckiest. Having struck big oil offshore starting in 2015, industry experts reckon total reserves at around 2 billion…
Diaspora seen as pivotal to Guyana’s oil future
Whether Guyana becomes “immensely rich or just another Trump-hole” from oil revenues depends largely on its ability to attract specialty experience and competencies in industry and sectors here, says business website Bloomberg. “Guyana could attenuate the brain drain by reaching out to its diaspora,” Bloomberg yesterday reported. “There are more than 100 reported expatriate organizations,…
Correct ExxonMobil contract …or it will be an uphill struggle to get other companies to do better
Chartered Accountant Nigel Hinds is pleading, once again, with the Government of Guyana and ExxonMobil to negotiate the “lopsided” Petroleum Sharing Contract (PSA) that they signed in 2016. Hinds said that along with the many ills of the contract, the APNU+AFC government needs to realise that if it does not fix the contract, other companies…
The impact of higher oil prices on Guyanese economy
Reuters reported that oil prices edged up on January 10, 2018 to a near two-and-a-half year high after data showed strong demand for crude imports in China and increased US refining activity that drew more crude from inventories. The current price of WTI crude oil was US$66.15 per barrel. Pipeline outages in Libya and the North Sea…
Stabroek News Editors Calls for Renegotiation of PSA with ExxonMobil subsidiary
Without doubt this is a crucial juncture in the country’s history as it relates to securing a better future for each of its citizens and for succeeding generations. The moment has been made even more poignant by the deep distress that the sugar industry is in, a fitting warning that a prosperous industry that commands…
Who Bears the RISK – Exxon or GoG?
I have just read an interesting account of Cost Recovery as provided for by the Profit Sharing Agreement between GoG and the Oil Company. (KN Feb. 10th, Pre-contract cost… US$460M seem to have been pulled from an alternate universe – Nigel Hinds). It appears every penny incurred by the Oil Company – including interest cost…