SENIOR Minister in the Office of the President with Responsibility for Finance, Dr Ashni Singh, has underscored the need for careful management of Guyana’s oil resource, highlighting the risks of relying too heavily on volatile global oil prices.
During a recent interview on Hits and Jams 94.1, following the presentation of Budget 2026 which allocates $1.558 trillion for the fiscal year, Dr Singh said Guyana has entered the oil and gas sector with what he calls a “late movers’ advantage.”
“We have become an oil and gas producer with what I call late movers’ advantage,” Dr Singh explained, noting: “We are able to look around at the collective experience, what other countries did, what they did that worked that we should emulate and replicate, and also what other countries did that did not work.”
The minister stressed that Guyana is determined not to repeat mistakes made by other resource-rich countries, where oil wealth often failed to translate into sustainable development.
He cautioned that global oil prices are unpredictable and underscored the importance of a strong non-oil economy alongside petroleum production.
“One of the most fundamental lessons that you learn from oil and gas or from any resource-rich economy, is, you have to make sure that the non-oil economy remains competitive,” he said, adding: “The reality is you’re not always going to have $60 a barrel. We’ve lived through a time when oil was $140 a barrel and we’ve lived through a time when oil was $8 a barrel in my lifetime.”
Dr Singh said that fluctuations in the oil market demonstrate why the country cannot rely solely on petroleum revenues for growth. Instead, oil wealth must be used strategically to finance national development while sustaining other productive sectors.
“Oil alone will not take us through the rest of the future of our country,” he stated, adding: “You have to ensure that you have a non-oil economy, a productive economy in sectors outside of oil that are growing and that is globally competitive.”
He pointed out that Guyana’s approach to oil-revenue management is guided by lessons learned from the international community. The government seeks to avoid the resource curse by putting legal and institutional safeguards in place to regulate withdrawals and spending.
“We are using our oil and gas revenue to the benefit of the Guyanese people,” Dr Singh said.
The Senior Minister also noted that the government is focused on ensuring that oil wealth contributes to job creation, investment, and long-term economic stability.
This includes funding infrastructural projects, energy initiatives, and other public services, while maintaining fiscal discipline.
As Guyana continues to expand its oil production, Dr Singh emphasised that prudent management and strategic planning are central to converting the country’s petroleum wealth into enduring prosperity, rather than a short-lived windfall vulnerable to market swings.
The Natural Resource Fund (NRF) was established by the Natural Resource Fund Act 2021, to manage the natural- resource wealth of Guyana for the present and future benefit of the people and for the sustainable development of the country.
The objectives of the NRF are to ensure that volatility in natural-resource revenues does not lead to volatile public spending. The fund also aims to prevent natural-resource revenues from causing a loss of economic competitiveness and to fairly transfer wealth across generations so that future citizens benefit.
Additionally, the NRF seeks to use natural resource wealth to finance national development priorities, including initiatives aimed at realising an inclusive green economy.