Reposing faith in our own capacity

THE discovery of oil in any nation is always greeted with excitement and euphoria, because of the numerous great possibilities that such a find will have for the social and economic development of that country.

For the citizens, it means an expected improvement in the quality of life, since the revenues derived from the oil sales, will of necessity usher in rapid development, with better social infrastructure and amenities, for their well-being. Of course, since the economy is expected to be impacted positively, the critical aspect of employment opportunities, for example, is expected to expand. So, it is only fair to say that citizens in any such country look forward to a new and improved life.

Guyana is now on this great trajectory, where finally the well-known statement that, “We are a rich country with poor people,” is about to change, come 2020, when first-oil is due to flow. Such a moment will have enormous socio-economic implications for this country, since it is slated to become the most important economic project ever undertaken in its history. Most naturally, there are high expectations on the part of the citizenry, as to what the expected oil-and-gas revenues will do for them as individuals and their families.
But it has set off a storm of public debate, with avalanches of views/opinions, implicit in which there have been criticisms of all kinds, regarding government’s contractual arrangement with the ExxonMobil oil giant, the main and largest of the companies drilling and other aspects that go into Guyana’s preparation for oil.

Of course, this is to be expected, because of the ramifications involved and the presumed understanding that there are social commentators and other types, Guyanese all, who are supposedly patriotic enough in wanting to ensure their country’s proper preparedness for this auspicious beginning of a new chapter in Guyana’s economic history.
The criticisms have been interesting for what they have purported to hold as advice for the government.

There have been those of an unmistakable political content, which criticisms reek of unmistakable vituperation, because they are not the ones in authority that are spearheading the preparatory process. Then there is another category which opinions, although subtly masked, betray sentiments that are concerned only about what they will receive as a result of say, the local content policy and other avenues. For this group, it is about the oil-and-gas industry through their eyes – a position of seeking to dictate to the government, rather than making suggestions for the national good.

The other group consists of a collective that are of the view that every aspect of the government’s preparations have been wrong. And of course, there have been also, the numerous views via the letters columns, especially, that segment which mixes nasty racism with so-called advice. These are a daily constant.

It needs not be repeated that preparing for oil presents very critical challenges for any discoverer country, in terms of laying down legislation; regulatory structures; procuring advisors, and competently skilled personnel to build management and skills capacity for the many components which comprise the oil industry. But one wonders whether these many “experts”, with obvious socio-political agendas, do remember such, when they purport to give advice.

For them, the A Partnership for National Unity+Alliance For Change (APNU+AFC) should have done all and everything right within these three years, since the first discovery from LIZA- 1 of the Stabroek block was announced in 2015. How fair and rational such an expectation is, is perhaps best explained by these critics.

The enlightening aspect of the coalition is that they have been listening and have been constantly reviewing, seeking to have the very best advice and guidance.

It explains why the administration has had experts in the oil-and-gas industry visit Guyana to advise, while guiding the process, as well as holding public seminars and encounters for the exchange of views. This is an on–going process that has been instrumental in fostering a better understanding of the oil-and-gas industry, while educating the public. There have been also key inputs from the well-known multilaterals of the World Bank and the IMF, on seminal aspects of building capacity for managing such a challenging industry, and this must extend to the United Nations Development Programme (UNDP), and the Commonwealth. For it is government’s intention to have a national oil administration that will manage this national patrimony in the national interest.

Of course, Guyana does not have the skilled category that is relevant to the oil-and-gas industry; but it is a preparatory work that has just commenced with the appointment of the young economist, Dr. Mark Bynoe, who will head the fledgling Department of Energy (DoE).

Those who have criticised this appointment should be reminded that there are few persons with all the ready, requisite skills that can be found to lead such a department. Such a combination, is honed over the passage of time, with exposure in the day-to-day operations, coupled with academic training. In fact, one can have a legal expert in oil and gas, but there is the absence of management and technical skills; or the latter two, but with an absence of the former.

For Guyana, it is an important observation which President Granger has recognised, when he stated quite clearly that Dr. Bynoe will be tasked with recruiting the appropriate skills. This should not be a problem, given his eminent academic background, professional exposure and experience, which would have brought him many professional contacts.

We are certain that there are many Guyanese who possess excellent multi-academic skills, who can be recruited from their overseas domicile for this monumental undertaking of establishing the DoE. And though they may not be a Rex Tillerson — as a former adviser seems to suggest that the Head of the DoE ought to be — they can combine their total talents for the effective management of our oil-and-gas industry. We must repose confidence in our own capacity, which no doubt will grow and come of age.

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