Guyana can show the world how to manage oil for citizens’ benefit – Rystad Energy
Guyana has already taken several steps that will allow it to avoid the usual challenges associated with the development of a country’s oil and gas industry and can be an example for the world to follow, energy researcher Schreiner Parker has said.
Parker is the Senior Vice President (VP) and Head of Latin America at Rystad Energy, an independent energy research company that is headquartered in Norway.
On Thursday, Parker presented Rystad Energy’s most recent study on Guyana’s oil and gas sector. According to the information presented, Guyana’s offshore oil production is poised to be among the top five in the world by 2035.
Importantly too, with ramped-up production and the possibility of more oil finds in the years ahead, the company posited that Guyana could earn about US$7.5 billion (or GY$1.5 trillion) annually by 2030.
Substantive oil production aside, however, Parker was keen to point out that the country appears to be prudently managing those resources.
The establishment of a Natural Resource Fund (NRF), which saves Guyana’s oil wealth; the passage of the Local Content law; and the strengthening of new institutions are among the “steps in the right direction” for Parker and Rystad Energy.
“I think Guyana has taken very diligent steps, as well as Exxon, to avoid the problems of the 20th century
“… and really, Guyana can be the test case for the 21st century when it comes to making sure that the resource is actually benefiting the owners of the resource, which is actually the Guyanese people,” Parker said at a forum organised by the local private sector.
Recently, a team from the International Monetary Fund (IMF) also concluded that Guyana’s medium-term prospects are quite favourable, particularly with oil revenues contributing significantly to development.
With this, the team lauded Guyana’s new NRF law, stating that it provides a greater level of accountability and improved management of Guyana’s oil wealth. This new law was instituted at the end of 2021, and, since then, all of Guyana’s oil revenues received thus far have been published.
While existing measures have been lauded, Parker noted that Guyana must continue to establish or strengthen the institutions that will promote good governance of the country’s oil wealth.
Strong, independent bodies, he said, are crucial to good governance.
“Institutions outlive administrations.
“… if we’re thinking about the long term projects that we are talking about, the long term money that’s coming in, independent institutions that are strong, independent institutions that can exercise their own power are important,” the energy researcher stated.