– says Energy Department director

DEPARTMENT of Energy Director, Dr Mark Bynoe, has said Guyana must ready itself for the expanding oil and gas industry and the development expected from the ‘Green State Development Strategy’ (GSDS).

The director made these remarks at the University of Guyana (UG) Turkeyen and Tain Talks 18 on Thursday, which focused on energy for Guyana, renewable energy, oil, gas and Guyana’s ‘green’ future.

“Energy is not an end in itself,” Dr. Bynoe explained, adding: “It is what it can be used for; how it can transform the lives and the livelihoods of all Guyanese.”

Guyana’s recent hydrocarbon [oil and gas] discoveries have the potential to place it on a development pathway, according to Dr Bynoe. This pathway has already been articulated in the GSDS.

The GSDS is premised on sustainable utilisation of the country’s natural resource wealth to support economic resilience and building the human capital.

The question often asked, according to the director, is whether the ‘green state ethos’ counters the pursuance of a hydrocarbon economy. “The answer for me is a resounding, not necessarily,” he said.

As articulated by President David Granger, the GSDS aims to promote sustained economic prosperity, environmental security and the social well-being of Guyanese.

“It is not just about energy, it is a development paradigm,” Dr Bynoe explained.

“While there continues to be substantial discussions around the utilisation of the oil revenues, the hydrocarbon resources revenues are expected to be the catalyst for growth and funding of the GSDS,” he said.

However, if the country decides to pursue cheap and reliable energy, including for value-added in other sectors, Dr Bynoe explained that Guyana must know where the growth sectors are and be able to target and put resources there.

DEMAND
“We are already seeing an increase in demand for energy,” he said, adding: “With increasing temperatures, there will also be a need for more cooling effects, driving the demand for more energy again.”

There is also a need for energy efficiency and investments in renewable energy, he reminded.

This expansion of the energy sector is one which augurs well for a well-implemented GSDS, according to Dr Bynoe, who stressed that it will be important for Guyana to ensure that its development in the hydrocarbon sector is complimentary with that strategic intent.

“Revenues from offshore will allow choices to be made with regards to onshore development, to ensure compliance with the GSDS,” he said.

He continued: “The critical aspect here is whatever Guyana does with its revenues, and as we pursue a ‘Green State’ ethos, let it be strategic and let us be able to pursue what is termed a ‘no-regrets’ measure.”

This ‘no-regrets’ measure, he noted, involves being wary of the dreaded resource curse, known commonly as the Dutch Disease.

This curse or disease occurs when there is an increase in the economic development of a specific sector and a decline in other sectors.

Cognisant of this, Dr Bynoe stressed that focus cannot just be on oil and on renewable gas, but other growth sectors as well.

As the country hopes to move to more renewable energy sources, he contended that the transition would encompass some caveats.

“A rapid large-scale energy transition creates extra demands for energy sources and these demands will compete with other economic activity,” he said.

For him, this is something Guyana really needs to safeguard against given its relatively small but capable and competent workforce.