DESPITE the rapid rise in the oil industry and contrary to public apprehension, Guyana remains largely on track to meet many of the sustainability goals set out in its Low Carbon Development Strategy (LCDS). As government officials outlined, during the recent Offshore Oil and Gas Conference (OTC) in Houston, success in the oil and gas sector can continue to unlock options that are vital to keeping the economy on a low carbon trajectory, while also raising standards of living.

Vice President Bharrat Jagdeo told audience members at a conference at Rice University’s Baker Institute recently, “resources must help us… keep the non-oil economy diversified so that the wealth created in this short period could continue to grow,” and support Guyana’s transition to a low carbon economy.

A growing economy bolstered by oil production and US hundreds of millions in new revenues
has brought previously unattainable projects within reach, while positioning the country as an increasingly attractive destination for foreign investment. Paradoxically, oil finds will likely mean that Guyana’s power sector cuts its dangerous emissions drastically. The byproducts created during oil production, like associated gas, have also made previously unfeasible projects that could help reduce emissions like gas to energy possible and economical.

Others that could likewise reduce power costs and cut emissions, like the Amaila Falls Hydro Project, are renewed options on the table. Both these projects could provide households with cheaper, more reliable electricity and make it easier to do business in Guyana. Most importantly, the addition of these two energy sources will meet rising demand without increasing emissions.

Meanwhile, a continued focus on renewables can help diversify Guyana’s energy mix further and allow the country to expand lucrative industrialisation without increasing emissions or sacrificing environmental standards. While these efforts can all be applauded, much of this work simply would not be possible without continued oil and gas development. Byproducts such as gas can make electricity cleaner and more reliable, while growing revenues give the government the option to invest in renewable energy, stronger infrastructure, and 21st century industries.

According to the Vice President, increased resources from oil production “can help us to accelerate our supply of energy to the people… [and support an] energy transition that is going to be a mixture of gas, hydro and solar and maybe some wind power too.” These investments will be critical as the country moves forward toward global goals set out by the Paris Climate Accord and looks to retain its reputation as a leading carbon sink. Guyana should also continue to actively engage with organisations like the Intergovernmental Panel on Climate Change.

Part of these efforts must be centered on the oil industry itself. It is vital that oil companies, government, and regulators prioritise strong environmental standards and adherence to international best practices for safety, and broader environmental considerations.

Norway, which gets most of its energy from hydropower and has become a centre of offshore wind technology, can be a model for how Guyana can use oil discoveries to position itself for a carbon neutral future.

We should continue to leverage oil revenues to support green economy initiatives like renewable energy and pollution reduction technologies that set the country up for the long-term future. Decarbonisation takes time and patience will be key as Guyana continues to progress.