GUYANESE are already benefitting in tangible ways from revenues emanating from oil. This is manifested in several ways, including that of budget support for the country’s massive infrastructural development programme, amounting to billions of dollars. Senior Finance Minister Dr Ashni Singh, had indicated that the government made its second draw down from the Natural Resources Fund (NRF) in accordance with the Natural Resource Fund Act, 2021.

According to Minister Singh, US$200 million equivalent to G$41.6 billion has been transferred from the Natural Resources Fund to the Consolidated Fund to finance national development priorities. It would be recalled that the Government of Guyana made its first withdrawal of US$ 200 million in May this year. This now brings the accumulated amount to US$400 million equivalent to G$83.3 billion.

These are significant sums of money which will go a far way in accelerating growth of the country’s economy, while at the same time enhancing the overall quality of life of the Guyanese people.
And despite what some Opposition elements might say regarding the nature of the oil contract between the Guyana Government and ExxonMobil, such significant injections of money into the local economy will certainly have a ripple effect on all layers of the economy, right down to the ordinary man and woman.

These are still the early days of oil returns to the economy and the full impact of oil and gas on the economy will not be fully realised until the end of this decade, when oil production is expected to reach over one million barrels per day.

The important point to note, however, is that the Natural Resources Fund is being incrementally replenished with even larger sums as the volume of oil production increases. Guyana has raked in US$108 million (approximately 22B) from its most recent sale of its share of crude oil.

As pointed out by President Dr Irfaan Ali at the recently concluded National Toshaos Conference, all segments of the population will benefit from the patrimony of the state and no community will be left behind.

Indigenous communities, the President affirmed, will benefit from the revenues coming from the development of Guyana’s oil resources. He related to the gathering of Amerindian leaders that the government will invest an additional $3 billion into hinterland communities. A supplementary budget of $3 billion will be laid in the National Assembly on July 21 for approval.

Similar sentiments were shared by Vice-President, Dr Bharrat Jagdeo, who assured toshaos that revenues from oil will be used to build diagnostic centres for hinterland communities. According to the Vice-President, it is anticipated that those diagnostic centres will cost over US$100 million.

In each of the four hinterland regions, the PPP/C administration will construct diagnostic centres with world-class capabilities. These are indeed commendable initiatives which will change the health landscape not only in hinterland communities, but across the country as a whole.

Apart from the direct benefits of oil to the economy, there are some “indirect” benefits as well, such as job creation and training opportunities provided to young people to work in the oil-and- gas sector.

But there is also the new profile that oil and gas has brought to the country, namely, as a place where opportunities to do business abound. Guyana is no longer seen as a pariah state as was the case under the PNC regime and there is, today, a high level of investor confidence, partly fuelled by the emerging oil-and-gas sector, but also as a result of good governance and full adherence to the rule of law by the current PPP/C administration.

The country is now experiencing a period of unprecedented growth and modernization. The revenues derived from the oil-and-gas industry are expected to have a transformational effect on Guyana and the standard of living of the Guyanese people. As noted by President Ali: “At the end of the day, development and functionality of development, the output of development is really to enhance the welfare and well-being of our people, the citizenry of our country and even in the diaspora.”

The ultimate aim of development is to create not only economic wealth, but also to create an environment in which human development is advanced. All of this, in the words of President Ali, has to be done in a very strategic and transparent manner.

The oil-and-gas sector has the potential to be a catalyst for change, one that could propel this country to much greater heights, one in which all boats will be lifted.