GUYANA is destined to become a major player in the petroleum industry. Within a relatively short span of less than five years, Guyana has moved from zero barrels of oil per day to over 250,000 barrels in 2022.  Indeed, the country is projected to be the highest per capita oil producer in the world, at roughly one barrel per person per day by the end of this decade.

This is a remarkable change of economic fortunes which can only redound to the good of the society as a whole. With a projected income from oil of approximately 10 billion US dollars per year by 2030, the country will be in a position to earn considerably more from oil than gross earnings from its non-oil exports. Rystad Energy forecasts that Guyana’s oil production could reach 1.2 million barrels per day by 2030, with total annual oil revenues of approximately $28 billion, based on a conservative assumption of oil prices averaging around $65 per barrel!

The issue under consideration is how best to utilise the projected billions in a way that will modernise the country’s infrastructure, while at the same time increasing the disposable incomes of the country’s public servants, pensioners and vulnerable groups, in addition to enhancing the quality of basic social amenities such as education, health, housing and water.

Sharing some thoughts on this issue, Ghanaian oil-and-gas expert George Owusu has advised that while it is important to invest in social programmes, annual distributions of cash grants should not be part of the development plans. He suggested instead that investments in skills training, capacity building and education would serve the nation better. Not everyone may agree with that suggestion, but coming from someone familiar with the petroleum industry, his ideas must carry some weight.

Speaking on the sidelines of the ongoing International Energy Conference and Expo in Georgetown, Owusu said that investing in education and skills training would boost the marketability of individuals, which could result in higher-paying jobs and enhanced earnings. He provided as an example Trinidad and Tobago, which spent 99 per cent of its fiscal revenues between 1999 and 2015 to increase transfers and subsidies which proved to be unsustainable, a situation which Guyana is being cautioned against by the Inter-American Development Bank (IDB).

The PPP/C administration has been adopting measures aimed at striking the right balance between infrastructural development and consumption. The policy position taken by the government is one in which revenues from the petroleum sector would be utilised for the modernisation and expansion of the country’s infrastructure, including such projects as bridges, roads, hospitals, schools and energy projects, which will have a positive impact on the quality of life of the Guyanese people, while at the same time stimulating growth and development across the non-oil sectors.

President Dr Mohamed Irfaan Ali has repeatedly said that revenues from oil will be used to create world-class education and health-delivery systems, while at the same time upgrading the physical infrastructure; boosting education, training and an overall enhancement of social capital.

Another important component of the government’s policy is the creation of high-paying jobs. Only a few days ago the President commissioned a facility at Enmore which will provide roughly 500 jobs, which is significant, especially when seen against the closure of the Enmore Estate by the previous APNU+AFC administration. The $7 billion-dollar investment by GUYSONS and K+B Investments Inc. will establish an oil field manufacturing facility which will require a pool of skills for which training will be provided. The investment, according to President Ali, goes beyond the oil-and-gas sector and could help to position the country as a hub for fabrication machinery services for the entire region.

An important aspect of that investment is the partnership between a local company and a foreign company, something that President Ali has been urging Guyanese companies to enter into in order to take advantage of the opportunities that are likely to accrue from the burgeoning oil-and-gas sector. And speaking at yet another commissioning ceremony of NTS Amega Atlantic Company at Houston Estate, Georgetown, President Ali said Guyana stands ready to welcome investments from all parts of the world. “We understand the nature of these investments. Machining and fabrication are an integral part of the oil-and-gas sector. More importantly, these are the types of investments that would change the skill sets of our human resource base,” the President remarked. The company is expected to provide another 25 direct job opportunities.

Job creation, skills training and human resource development are high on the development agenda of the PPP/C administration, as it seeks to re-align the skill sets of the population with the changing needs of industry and commerce. This is one sure way of preparing Guyanese to benefit from the oil-and-gas sector, especially in the context of the local content legislation. It is a case of the proverbial ‘learning to fish’, as opposed to be given a fish.