GUYANA is positioning itself to become a regional powerhouse. With proven reserves of over 11 billion barrels which potentially could increase to 20 billion barrels further down the road, the country is poised to become the largest per capita oil producer in the world.

The recently approved Yellowtail development is expected to begin production by 2025. This would add an additional 250,000 barrels per day. Production is expected to reach 800,000 per day by 2025 with the coming on board of the Yellowtail, Payara, Liza Phase One and Lisa Phase Two. By the end of this decade, Guyana could be producing over one million barrels per day!

Not surprisingly, Guyana is now expanding its global reach by hosting several international oil and gas conferences. Not so long ago, Guyana hosted an international oil and gas conference which attracted investors and interested parties from all over the world. Preparations are currently underway for the hosting of the next International Conference Energy Conference and Expo Guyana 2023. This conference is slated for February 14 to 17, 2023 under the theme, ‘Harnessing Energy for Development’.

Prime Minister Brigadier (ret’d) Mark Philips, who delivered the feature address at the launching ceremony, conveyed government’s continued support for the event and for the prudent management of the country’s oil and gas sector. As noted by the Prime Minister, the objective of the conference is to facilitate conversations between energy professionals and policymakers with a key focus on including discussions on agriculture, mining, housing, forestry and tourism and the investment and utilisation of our resources for a greener Guyana and, ultimately, a greener world.

As pointed out by the Prime Minister, “the successful hosting of the February 2022 conference has catapulted our efforts in a greater direction as we plan for the next such activity. One of our goals for the next edition is to deepen the discourse, extending our reach into areas of new energy research, and ensuring that there is growth and diversity in nationality of persons that come here to participate.”

The Chairman of the Private Sector Commission (PSC), Paul Cheong, reaffirmed the Private Sector continued support for the event. It is events such as these, he said, that ‘exposes us to new opportunities for growth; participation in the last conference provided space for major networking and partnerships. The upcoming conference will be another occasion to build on those opportunities made; it will provide an opportunity for us to get to understand the industry, and not only oil but the non-oil sectors as well.

Without any doubt, oil and gas is a game-changer and as observed by President Ali, the idea is not to build an oil economy but to use the revenues from oil to advance the development of the country in a holistic manner, with a focus on diversifying the economy. This is necessary to prevent the so-called Dutch Disease with a reliance only on the dominance of one sector only, namely the petroleum sector.

The PPP/C administration is committed to ensuring that our oil revenues are utilised to enhance the quality of life of all Guyanese. The Local Content legislation is intended to ensure that Guyanese benefit from a fair share of the proceeds from our oil and gas resources.

Guyana is now on a new path of development where oil revenues will be a major catalyst for economic development. After decades of the granting of exploration licences in the Stabroek block, Exxon Mobil notified the government of significant oil finds. The discovery of Liza 1 field, considered as a major discovery, has put Guyana on the petroleum map and attracted the attention of other operators. The impact of oil on economic development has captured the interest of many academics and policymakers.
There are those who caution against the ‘resource curse’ and the ‘paradox of plenty’. The underlying assumption of these perspectives is that by focusing only on oil there is a risk of a lack of emphasis on the other sectors of the economy which could impact negatively in terms of sustainable development, especially in the context of price volatility.

This is exactly what the PPP/C administration is seeking to guard against. The focus on agricultural development and the tourism sector is meant to strike that balance. The boom in Guyana’s oil industry has created a unique opportunity to leap-frog Guyana’s development. Due to our limited population size, the impact of increased oil production in the years ahead will place Guyana ahead of most developing countries in terms of growth rate and per capita income. According to Vice-President, Dr. Bharrat Jagdeo, Guyana’s per capita income has now reached US$9,000, a remarkable improvement over what it was before the discovery of oil.

The government is doing a commendable job in managing our natural resources within the framework of a low carbon development trajectory. The hosting of these mega-conferences such as the oil and gas conference is one way of marketing Guyana and its abundance of natural, mineral and other resources while at the same time learning from the best practices of others and the sharing of perspectives on the way forward.