That oil contract may be rooted in history – By Adam Harris

That oil contract may be rooted in history

By Adam Harris – Kaieteur News

Most of the conversation these days centres on the oil contract. This contract was made public in December after calls by the society. And from the time the contract was released, people began to pick holes in it.
And indeed there are flaws that seem to be to Guyana’s disadvantage. Critics began to pick at these flaws. Now there are calls for the oil company to revisit the contract and make things a bit more meaningful and profitable for Guyana.    

However, there is a school of thought that Guyana is getting more than it would have got had the oil company not undertaken the exploration. This seems to be a case of half a loaf is better than none. But this argument does not hold water in some quarters.

This caused one commentator to recall the attempt by Union Carbide to mine manganese in Guyana’s northwest region. Manganese is an import mineral that is in demand on the world market. There were the negotiations with the Burnham administration.

Burnham insisted on more than Union Carbide was prepared to offer, because he felt that the ore was Guyana’s and the country should get maximum benefit. Union Carbide said that it was not prepared to go better than it was offering, and picked up its equipment. It left for Ghana and Guyana was allowed to keep its manganese.

We know that to this day the manganese is there and Guyana was no better off. It has its manganese that it can do nothing with. That was about fifty years ago, but in that time Guyana was forced to rely on more foreign aid and could not pay the kind of wages that it should.

Exxon-Mobil Drilling rig

We come to the oil situation. ExxonMobil came in the 1990s and after negotiations, got concessions offshore. Between 1999 and 2002, ExxonMobil began to explore. From then to 2015, there was the exploration until the discovery. All this while Guyana was silent, probably because it was unaware, or because it had given hope of finding oil. Many companies had been exploring, but they all came up empty.

Janet Jagan had given the oil company 600 blocks instead of the sixty, but no one said anything then. The announcement of oil came in 2015 and suddenly Guyana began to focus. The 600 blocks that Janet Jagan gave to the oil company became a focus. The critics now wanted the present administration to correct this breach of the regulations.

Guyana began to get some money from the oil company, but the critics said that it was not getting enough. People began to look at what others got at the same stage and contended that Guyana should be getting the same. This continues to be the cry to this day. Talk about half of a loaf being better than none is not holding water.

When I talk to people about ExxonMobil packing up and leaving, they all say that the oil company would not leave because it has spent a lot of money. And besides, it has found one of the largest oil deposits in the world.

Meanwhile the price of oil is not what it used to be. At the same time, the United States has reopened production and is shipping large volumes of shale oil to countries like China, India and even some small countries. This is having an impact on global production and ExxonMobil is monitoring this situation. It is now left for us to see whether this oil company would find its operations in Guyana unproductive.

If anything, Minister Raphael Trotman is perhaps the most criticized. He has explained repeatedly that having looked at the existing conditions Guyana did the best it could. There is the Venezuela threat that kept away many oil explorers.

ExxonMobil faced this challenge. This is being done, but in the event of anything, Guyana would have to bear the cost.

One argument is that if one is prepared to take the chance, then one is doing so at one’s own risk. If one succeeds that, one enjoys the fruits of one’s labour.

Where does this leave Guyana? I could see a future without oil and Guyana remaining poor. Yet this does not mean that Guyana must bend over backwards. However, there are Guyanese who are actually happy with the situation. These are the local businesses. They are already beginning to capitalize on what is on offer.

Some have already built stockyards. Others are securing transportation contracts, so for them, the bigger picture is not important. They are the believers in the half a loaf policy.

The question at this time is what the effect of the criticism on ExxonMobil is. This oil company is bigger than most governments, so the criticisms from some people in a backwater country would merely irritate, but will not hurt. Yet public opinion has been known to have an impact on everything. Public opinion is that there should be a review of aspects of the contract.

It goes without saying that ExxonMobil will make a killing. At the same time, Guyana is going to get more money than it would have got from any source. I can see Guyana not having to rely on foreign aid and donations.

To add to the benefits of the country is the agriculture production. Trinidad is in dire straits because the bottom is falling from its once booming oil economy. People are being laid off from the sector to such an extent that crime is climbing.

There is nothing to fall back on, so when the country could have imported all that it needed, the time is now that there is simply not enough money. Guyana has a vibrant agriculture sector that must be enhanced with whatever money is coming from oil.

The world knows that Guyana is going to be rich, even with this flawed contract. I can see many people flocking to this country, because people always follow opportunities. Other oil companies are coming, because they know that they too can cash in on the bonanza.

Minister Trotman is assuring that the other oil contracts would not be as lopsided as the ExxonMobil contract. So the promise is that Guyana would eventually get what it deserves, but the critics in the society want that bit more that they say is available and due to the people of the country.

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  • Chris Prashad  On 02/11/2018 at 5:36 pm

    Oh what a mess we are in now !!!!!! When I posted my concerns on this matter in 2015 it seems that no one cared then. Was it because I was just another Indian trying to throw a wrench in the works or was it that my concerns had no weight. Here is the full article re-published for all to see again.


    The GREAT WHITE SHARKS have finally invaded Guyana’s waters. These white sharks are not here to help the Guyanese People; they are here to exploit our natural resources to their advantage using inflated cost and expenditures to maximize their profits, while at the same time polluting our shoreline and coastal waters. They have not made a new discovery that we did not already know about since the Venezuelan authorities invented a false claim on our territory. (Thou shalt not COVET)

    Remember what they did to our other natural resources, Bauxite, Manganese, Gold, Diamond, Forest products etc. How much did Guyana benefit from their presence here?
    Have we forgotten our history? What did they do to our dollar and the exchange rate?

    Mr. President, before you ever sign any agreement with these expatriate crooks at Exxon Mobile please take the time to delve into the history of oil companies.

    In the USA they rake in Billions of dollars in profits while at the same time use loopholes to garnish billions more in Government subsidies, taxpayers money, besides manipulating prices at the pump to maximize their profits.

    To add insult to the intelligence of the populace they damage and destroy the roads and other infrastructure with their heavy vehicles and expect the taxpayers (through additional taxes) to foot the bill for the repairs while their profits skyrocket to the highest degree.

    Besides, they do not care about the environment. Exploding trains, fuel tankers, and environmental pollution mean nothing to them. Poisoning waterways with their toxic waste, polluting the air with toxic wastes from the chimneys of their refineries, are of little concern to them (all oil companies) All that they are concerned about is the huge profits they can generate. If the Presidents of the USA are helpless in their hands then think about what they can do to us if we fail to have the PEOPLES’ input in the drafting of a contract which must include (1) responsibility for the environmental clean-up should a disaster (even by nature) or spillage occur. (2) Nationalization of the industry for any major breach of contract monitored by an independent world body selected by our government.

    If someone comes up with an invention that can generate much cheaper electricity without using fossil fuel, or if someone invents an engine that can run on water instead: their inventions are not allowed to see the light. Besides, they are murdered or their inventions are destroyed or purchased outright and shelved. There are tons of evidence on these matters now available, thanks to the age of modern technology.

    IS THIS WHAT WE WANT FOR OUR COUNTRY AND OUR PEOPLE? Are we so dumb as to forget what our forefathers went through in the hands of these expatriates before we gained our independence and kicked them out? Are we going to allow history to repeat itself?

    Mr. President, you are the new MOSES of our people. You and your cabinet are tasked with the responsibility of uniting our people, to break the yoke of Babylon hanging around our necks, find a way to extricate our people from the claws of the IMF, the World Bank and all those institutions controlled by the Rothschilds’ institutions and others that sink their teeth into our Nation’s Natural resources and our peoples’ life blood.

    Beware of the Satanic New World Order and the invasion of foreign forces that will institute marshal law and enslave our people if we allow them to have control over us.. (This will be worldwide) Is anybody taking note of these things?

    Let self-reliance, self-sufficiency, and living in harmony with nature in service and worship of our Creator, Yahuwah, be our constant guide and goal. Release us from the clutches of the US Dollar which will crash sooner than later, when we least expect it, taking the world economy with it. Hyper-inflation is on the way. Are you people listening to the voice in the wilderness?

    Will somebody, please get to the roof-top and shout out this warning to our people and our leaders before it is too late, please!!!!!!! There is much more on the horizon.

    Post Script: 02/11/18

    If we are to pay the full inflated expenditures for exploration then we must retain the rights of control over this industry and our natural resources otherwise cats will eat our dinners. BEWARE OF THESE SHARKS.

    If and when Guyana benefits financially, it is my hope that wisdom will prevail. All foreign debts must be zeroed out, some of the oil revenue must be used to build up our gold reserve to back the Guyana currency which should be appreciated in value gradually in the building of a sustainable economy through development of hydro-power (green energy) and our agricultural industry. MONSANTO GENETICALLY MODIFIED SEEDS and dangerous chemicals MUST be banned from entering the country. Junk food or Frankenstein foods should have no place in Guyana including chickens and chicken meats from the USA. We are not a dumping ground for their TRASH. Failure to monitor this situation will certainly lead to serious consequences for our people.

    • Maria-Telle  On 02/11/2018 at 6:10 pm

      Oh noes! Another spoil sport!!!!
      Why are you and Mark very negative and critical of the USofA? Guyana will become the richest countries on earth because of Exxon….We will have the highest Gross Domestic Product per capita in the world!!!! We will become so rich and wealthy that we will be #1 in GDP of the world! We will be wealthier than China!!!!

      Why do you have contempt for Minister Raphael Trotman? He is going to make Guyana the richest country in the world! We will export more barrels of oil per day than Saudi Arabia, Russia and USofA combined!!!! We will export 20 million barrels of oil a day by 2030! We will become very wealthy!

      Plz take your hate and negativity somewhere else, like say, somewhere like a homeless shelter in South Bronx.

      • Chris Prashad  On 02/12/2018 at 8:19 pm

        Where ignorance is bliss it’s a folly to be wise. You have no idea what these sharks are doing. Some more schooling will do you some good. A word of advice –
        Never count chickens before you see them physically.

      • Mark  On 02/12/2018 at 11:57 pm

        Guyana will have to earn at least US$20 Billion in oil exports (sales) in order to reach a GDP per capita similar to smaller oil producing nations like Kuwait (, and because Exxon is only giving Guyana GROSS PROFIT of 50%, Guyana will have to export over US$70 Billion of oil at current oil prices of US$60 in order to receive their US$20 Billion share of profits from Exxon, if that is, Exxon doesn’t inflate costs.

        US$70 Billion exports of oil will literally oversupply the oil markets that oil prices will collapse to US$25 levels seen in early 2016. You aren’t aware of what you’re talking about instead of acting as an Exxon shill.

      • Mark  On 02/13/2018 at 12:05 am

        @ Chris Prashad, the ‘great white sharks’ have already sent an invoice to Guyana for US$460 Million! Exxon also sent an upfront ‘bonus’ of US$18 Million that was not revealed to the Guyanese people, because the GoG claims that the US$18 Million bonus is being used for “a legal case against Venezuela” and that ” the GoG and Exxon did not reveal this “bonus” because it will give Venezuela an upper advantage”.

        Likewise, Exxon Mobil is likely funding online supporters to condemn and derail anyone criticizing their oil company.

        Sheeple think we’re being negative, but we’re being realists here. Exxon has already claimed large portions of prime airspace land near Ogle Airport, and I’ve heard that they are constructing a 15 story hotel on that soft soil. Exxon is going to cause issues with the coastline if they’re constructing such tall buildings on soft soil.

    • Ariel W.  On 02/11/2018 at 6:29 pm

      Prashad? Trinidad & Toebay GO! Our government is highly competent and knows what it’s doing to turn Guyana into the Kuwait of the Americas? Why hate on us Trinidadian? Guyana will become #1 in the rankings for highest income per capita.
      We have enough oil in Guyana that we will be able to export over 50 million barrels of oil a day for 1,000 years! Our oil basin is RICH AND PLENTYFUL!
      Please for the love of God Trinidadian, we as Guyanese will become richer than ever. We will be richer than Trinidad by 1,000 times and wealthier than United States of America and China combined, because we have oil.

      • Chris Prashad  On 02/12/2018 at 8:48 pm

        What makes you think that I am a Trinidadian EDITED OUT? I am Guyanese to the bone. Your ability to comprehend what I wrote here is questionable. You would
        do well to re-read what I wrote paying close attention to the dates of publication and you may have a different view of the concerns raised.
        I am not condemning any Government Official, I am more concerned about the way Exxon Officials manipulate leaders of Governments around the world leaving the host countries holding the slippery ends of the sticks they use to gain advantage of the weak with the sole purpose of maximizing their profits. Just remember that they want Guyana to bear the questionable inflated costs of getting this industry off the ground. The million dollar question is – are we getting a fair deal?

      • Mark  On 02/12/2018 at 11:45 pm

        @ Chris Prashad,
        I wouldn’t be surprised if Ariel is someone who has a stake with Exxon Mobil such as shares or is employed with the American HQ of the oil company.

        But you have to say that its comical that Ariel calculated very poorly because 20 million to 50 million barrels of oil daily will not only overflow the already oversupplied oil markets, but this will drain out all 3.2 billion barrels of oil within 6 to 8 months which defeats the contract that Guyana signed with Norway for renewable energy and climate change.

        Several European countries are already warning Guyana not to pollute the ocean because 1) cleanup costs will be in the billions of US dollars, 2) this will cause conflict with Venezuela because the oil is located not far from Venezuela in the Orinoco basin, 3) the oil spill will cause side effects to those up in Region One, 4)Norway is reluctant to give Guyana any aid because of what the country claims is using fossil fuels instead of Amilia Falls for energy.

    • Tony  On 02/15/2018 at 3:50 pm

      Thanks for taking a stand!

      • Mark  On 02/18/2018 at 8:57 pm

        The Exxon contract is under review by the Cabinet members of the Government of Guyana. This is great news because it will ensure that the oil revenues will be fair, transparent and benefit all Guyanese rather than a few elites or oligarchs!

  • Mark  On 02/12/2018 at 1:56 pm

    “All foreign debts must be zeroed out, some of the oil revenue must be used to build up our gold reserve to back the Guyana currency which should be appreciated in value gradually in the building of a sustainable economy through development of hydro-power (green energy) and our agricultural industry.”

    Colonel Gaddafi wanted to sell Libya’s oil for gold-backed African dinars, and the next thing you know, America invaded Libya after funding fake-Islamic militants to create propaganda.

    Venezuela is in the midst of an American invasion because of oil, and rarely any Guyanese is seeing the truth about American imperialism, except a quiet few who know the consequences of criticizing the American empire.

    Despite my criticism of the oil contract, I acknowledge that Trotman can’t do anything to annoy or vex the American empire corporation Exxon Mobil. However, he cannot proclaim false promises to Guyanese. He has to tell the facts as it is as to what is the accurate representation of oil revenues, rather than telling everyone how every Guyanese will be richer than UAE, Switzerland ,Kuwait or Luxembourg. That type of false promises were given to the Africans in Equatorial Guinea, Cameroon & Kenya, and look where those countries are at now!

    • Chris Prashad  On 02/13/2018 at 9:00 am

      Thanks Mark, great job man. Concerned citizens of Guyana seems to have no place in
      this discussion. Like the days of Noah so shall be and not until reality stares them
      in the face will they come off their high horses and face the consequences of their decision making. At that time it will be too late to retrieve the vessel heading down a steep whirlpool. Take care bro.

      • Mark  On 02/13/2018 at 9:32 am

        Very true….I love Guyana, but I fear what Exxon Mobil is going to cause negatively to our country. The white man will do anything to put the non-whites into perpetual states of poverty, agony and destitution.

        As they say, the first way the white man took control of the slaves was to indoctrinate the female slaves to see the white man as the male figure, and her male counterpart as a villain to be despised of.

        The white man will continue to rape, pillage, destroy, leech, break and whatever forms of destruction that he will cause on his way to enrich the white America empire. Ask the Venezuelans what happened to Hugo Chavez after he stood up against Exxon Mobil.

      • Chris Prashad  On 02/13/2018 at 11:52 am

        World dominance of the wealth grabbing and wealth hoarding hypocrites who call themselves “Jews” Does this ring the bell of the tower of Babylon where those who sold their souls to Abandon, known as Satan, and rejoice in the blood bath to satisfy their cravings ????? Don’t get me wrong, not all jews fall into this category. There are millions of them who are worried about the future of this planet and rightfully so. Besides, there are so-called mega stars and celebrities who are involved in this Satanic rituals also and our children are at humongous risks of falling prey to these pedophiles. Get the picture ????
        And yes, my life was threatened but I don’t care. The truth will be exposed regardless of my demise.

      • Mark  On 02/13/2018 at 4:12 pm

        The average Guyanese will not understand the Zionist conspiracy unless they migrated to Zionist occupied cities like NYC, Paris, Toronto or London, UK.

        In Canada, I notice that a disproportionate amount of employees in the financial and education sector are Zionists. In the USA, large percentages of Congressmen and Congresswomen are dual citizens of Israel.

        Exxon Mobil is supposedly a merger of Rockefeller’s Standard oil company and Mobil oil company because when the USA was not infiltrated by corporatism, Exxon Mobil was forced to merge in order to follow anti-competition laws.

        Not far from Brickdam, a Masonic Freemason lodge is being constructed for European Freemasons.

        Social ills like Satanism, feminism, LGBT-isms, transgenderisms and other sickening choices are all represented by mostly whites and white Zionists posing as Jews.

  • Mark  On 02/13/2018 at 9:08 am

    “Will there be voices to stop the way the government will use oil income, or will use the Sovereign Wealth Fund? For it to happen, a democratic country must have a heart and a soul, and there must be a start long before the oil income comes and the fund is born. But where is the start? Will civil society and the rest of the country feel for the hundreds of school children whose labour of learning is done under atrocious conditions in public schools?

    Will the Guyana people look toward their conscience and say a sympathetic word for an ailing mother who shares a bed with two others at the Georgetown Hospital? Will they grieve for the poor citizen who died from a wound or an illness at a public medical institution that people no longer die from since the last century? Will they utter just one word of disappointment when an 18-year-old goes to jail for the mere theft of a cell phone? Will they say enough is enough when employees at private security companies are paid slave wages and the Labour Desk at our government ignores their plea of redress?”

    My commentary: This quote came from distinguished educator Freddie Kissoon. Everyone knows that he’s a critic, but his concerns are very similar to my concerns.

    Trotman is not telling Guyanese the truth when giving false promises to Guyanese how Guyana will become the Saudi Arabia of the Western hemisphere. Where are the politicians to assure Guyanese that schoolchildren will no longer have to relieve themselves in the bushes, or that single mothers aren’t dying in the maternity wards of public hospital? You can’t have promises of Saudi Arabian wealth when no one is investing in our hospitals and schools.

    • Chris Prashad  On 02/13/2018 at 11:22 am

      Nicely put Mark, I am with you all the way. And if I may add “They are too myopic to see visions of progress and prosperity in the future for the Guyanese populace, current and in the future “ Will they truly benefit from our natural resources or will they face a future like what our neighbor, Venezuela, is experiencing now ????

      • Mark  On 02/13/2018 at 4:00 pm

        Exxon’s $18 Million US bonus is currently in dispute because Anil Nandlall of the PPP/C wants to see that Bonus in a fund that is for the oil revenues. As of now, no one knew about this US$18Million bonus from Exxon until Kaieteur News pressured the company or someone was forced to leak information.

        If Exxon is acting secretly on US$18 Million, imagine what would happen when royalty payments of US$180 Million start to be transferred from Exxon?

        American websites like praise Guyana for exporting over 600,000 ounces of gold in 2015 and 2016, but where did that gold money go? 600,000 ounces multiplied by say US$1,000= US$6,000,000,000…six billion US dollars worth of gold was exported from Guyana.

        The last time I met my brother in Guyana, which was in 2017, the speedboat terminal at Stabroek Market is in a state of ruins that people can fall into the Demerara River if they don’t watch carefully.

      • Mark  On 02/13/2018 at 4:01 pm

        Correction is that 600,000 ounces of gold at US$1,000 per ounce is US$600 Million, which is very substantial given that the GDP of Guyana is only US$3 Billion.

  • Mark  On 02/13/2018 at 9:53 pm

    @ Mr. Chris Prashad,

    “I have to keep this short because the public only gets a minute and 45 seconds while lobbyists can throw a gala at the Marriott with whiskey and wine and talk for hours to the delegates,” Lucas said.”

    This isn’t any different from what Chris Ram experienced when questioning the contract at the Guyana Marriott Hotel, except that the oil companies didn’t move him out of the building in his own country.

    If the USA is influenced by oil and energy companies, then the risk is there that countries anywhere in the globe can be influenced by oil companies.

    • Chris Prashad  On 02/14/2018 at 8:10 am

      Thanks again Mark. We have done our part even though it may be too late to escape from the trap the sharks have cunningly set for the gaulible leaders in our society. May the Most High watch out for us and protect us all from these exploiters and bless us according to His Will.

      • Ali...  On 02/14/2018 at 1:33 pm

        There is a saying, “Great minds think alike, small minds rarely differ.”

        A toast to Chris and his buddy Mark.

      • Mark  On 02/15/2018 at 8:16 am

        Great news! The oil contract is under re-negotiation at the Cabinet

        While some of the commenters who aren’t Exxon shills blasted me for my negativity and skepticism, I saw that Freddie Kissoon was using some of my ideas in one of his articles.

        Unlike the average local citizen, Exxon cannot successfully pay a mercenary to put a bullet into my skull to silence me because that would open a can of worms because I am a member of the Upper Canada law society, and if Exxon or a corrupt government were to get rid of me, this would cause outrage.

        Sheeple hate us for questioning the motives of white America, but I don’t care what they think; I only care that the oil revenues will be used to uplift the Guyanese to a better standard of life, where no one has to die from wounds which can be treated in 2nd world countries since the 1800s, or where no one has to share beds at the public hospital, or where Guyanese will no longer have to endure poor conditions at our local facilities. Guyanese will thank us later.

    • Ali...  On 02/15/2018 at 3:21 pm

      Mark, why is it important for us to know what society you belong to? I don’t think anyone really cares. Your concerns about Guyanese affairs are fine. Keep beating the drum. And see how many will tap their toes. Or dance.

      • Mark  On 02/18/2018 at 8:56 pm

        Regrettably, if Chris Ram was a street vendor or rice farmer, no one would take his concerns seriously. Likewise, I only stated my profession to let Exxon shills know that we aren’t going to take inequality that easily compared to other 3rd world countries where the poor end up being intimidated and persecuted by American corporations.

  • Albert  On 02/20/2018 at 1:24 pm

    What you guys should consider is whether a small country like Guyana has the internal capacity and resources to utilize a continuous infusion of large sums into the economy. More money chasing the same number of goods, services and local investment capability.
    Prices are going to rise considerably, much more will be imported and those at the bottom with fixed income will suffer somewhat. How things turn out will depend largely on the government ability to deal with such increase in money.

    • Ali...  On 02/20/2018 at 1:50 pm

      Guyana needs new blood in politics. The old hacks in there have run out of fresh ideas. Guyana needs men with balls who can stand up to foreigners and not let them rape the country like in the past. Is this possible? Don’t hold your breath.

      • Mark  On 02/20/2018 at 7:50 pm

        Hugo Chavez stood up to Exxon Mobil and other American corporations, and look where he is now….

    • Chris Prashad  On 02/20/2018 at 3:47 pm

      Two words my friend “wealth management”
      but first the wealth must be in the bag before any decision making can be entertained.
      Bearing in mind the fact that the current contact with the oil company puts the entire country at risk should an oil spill occur and the oil company gets off with impunity. The country is already saddled with the highly inflated cost of getting the industry off the ground and the oil company again gets a very good gift. My concern is that this lopsided contact is totally not worth the extremely high risks involved and unless ExxonMobil , with all the modern technology available at their disposal, is held responsible for any oil spillage resulting from their activities in Guyana’ Waters then we should not give the go ahead – NO – not until they agree to do so. And this goes for all others who want a piece of the pie. Fair is fair not lopsided in favor of the oppressors. There is only one way of doing business and that is the right. Partners should look out for each other fairly and not find ways to cheat through cunning and corruption. For too long now these sharks have been taking advantage of poor nations without the knowledge, expertise and experience of such complex an industry .
      Guyana must not allow this to happen and we should all forcefully demand the re-negotiation of all contracts related to this industry even if we have to involve international agencies sympathetic to our cause. Guyana deserves much better. We have allowed our country to be brutally raped of its natural resources for too long. Time to bell the fat cats and harpoon the sharks before it is too late.
      Enough is enough. No more bullying.

      • Mark  On 02/20/2018 at 8:11 pm

        It’s suspicious that Exxon would not want to hold responsibility for an oil spill, and instead leave the Guyana government to foot the bill of the costs of cleaning an oil spill, which will likely be in the hundreds of millions of dollars, if not over one billion US dollars.

        Exxon is also allowed to import as much as they want without paying any duties or taxes. Exxon is also constructing a “hotel” at Ogle. This will cause inflation for Guyanese because excess imports cause trade deficits and higher prices.

        I remember reading, and an article praised Guyana for exporting over 600,000 ounces of gold in 2016. The last time I went to Guyana, which was last year, the G/Town stelling wharf is in a very poor condition.

        Hopefully, the oil revenues will improve infrastructure, healthcare and education for Guyanese. They deserve their fair share of oil revenues.

    • Mark  On 02/20/2018 at 7:49 pm

      Exxon estimates that at the current level of 120,000 barrels of oil daily, Guyana will earn US$365Million, which is approximately 10% of Guyana’s total GDP. The IMF estimates that Guyana’s GDP will increase by 30% for 2020 and 2021.

      Rather than push inflation, the currency of the Guyana Dollar will rise in value relative to the US Dollar and other foreign Big 6 currencies (Pound, Euro, Canadian dollar, yen, Swiss Franc, Yuan). This will negatively affect the exports of rice, sugar and manufactured goods.

      I know that you’re worried that the oil revenues will funnel into a select few, and cause massive inflation, such as Arabian Princes spending US$300Million for a painting, or traveling to Western countries to book US$5,000 a night hotel rooms as luxuries, but this will not happen.

      I see the Guyanese Dollar rising in value rather than push inflation. The oil revenues will be sent to a Consolidated account rather than to oligarchs who will cause inflation and income inequality for the rest of the country.

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