Guyana has tremendous opportunity to transform entire CARICOM region – analyst
Guyana has a unique opportunity, by virtue of its oil and gas industry, to promote the growth and transformation of not just itself, but the entire Caribbean Community (CARICOM).
This was the message from Energy Co-Director at Americas Market Intelligence (AMI), Arthur Deakin during last week’s International Energy Conference and Expo.
“As we all know by now, the discoveries in Guyana have been unprecedented, both in terms of the success rate and the speed in which its resource has been developed. The discoveries have been so impressive and consistent that it has created a relative numbing effect. We almost expect new discoveries to be made on a monthly basis.”
This means a lot coming from Deakin. AMI is among the leading strategic market research consulting firms focused on Latin America.
He explored the enviable conditions for the extraction of Guyana’s light sweet crude, including the relatively cost of Guyana’s crude. Data gathered by AMI shows the breakeven costs of the first four offshore developments by ExxonMobil are among the lowest in the world. He explained too that the relatively low emissions estimates for Guyana’s crude will see those barrels outselling and outlasting the more sour, heavier crudes from other petroleum jurisdictions.
These conditions, coupled with the government’s management of risks, sees Guyana edging out Suriname in competitiveness, according to Deakin.
Guyana also beats out Brazil and Argentina in competitiveness, according to the London-based IHS Markit, making Guyana the 10th most competitive petroleum jurisdiction in the world, and the crown jewel of the region.
“With good governance and strategic planning, I believe that Guyana has the opportunity to not only become an energy hub, but also logistical, commercial and manufacturing powerhouse,” Deakin said.
He produced a chart showing AMI’s assessment of risk in eight key sectors, which would be the main drivers of Guyana’s growth. These are mining, oil and gas, insurance, manufacturing, real estate, agriculture, logistics and renewable energy. He noted that investors would find the least risk in renewables, though oil and gas would bring in more revenues.
Arthur said, “I recently wrote that Guyana could become the next United Arab Emirates of Latin America. I genuinely believe that’s the case, if it can accelerate the diversification of its economy and ensure that oil revenues are spent both strategically and transparently.” The Government has legislated a Natural Resource Fund which parliamentary scrutiny the cornerstone of its management. It intends to spend Guyana’s oil revenues to build up Guyana’s infrastructure and provide world class social services, ensuring that the Guyanese public benefits from a world class standard of living.