With the production of 500,000 barrels a day for 300 days a year at US$40 a barrel, the annual income would be US$6 billion. The cost of production of oil varies widely, depending on whether it is onshore or offshore and if offshore, how far away and how deep. To give some idea North Sea oil was produced by BP in 2014 at US$30 a barrel. It went down to US$15 a barrel in 2017 and is expected to go down to US$12 a barrel by 2020. The estimated cost of production in offshore Guyana has not been made known by either the Government or ExxonMobil. We are therefore left to speculate.
Assuming that a maximum of about half of the income would be deducted as production costs, US$3 billion would be deducted as production costs from an annual income of US$6 billion. Guyana would earn 50 percent of the profit, that is, US$1.5 billion plus 2 percent of US$6 billion as royalty which would add another US$120 million. At minimum, therefore, Guyana’s economy would double. More likely than not, Guyana’s economy would grow to three times its current size and even more, if the price remains around US$60 per barrel and if more discoveries are made resulting in higher production. ExxonMobil has drilled only eight wells in seven of which oil was discovered. It plans to drill another twenty. There are also other blocks to be explored by other oil companies and other blocks yet to be given out for exploration.
The basis of Guyana’s political outcomes has remained static for many decades. With deeply entrenched ethnic voting patterns, Indian Guyanese, originally constituting close to 50 percent of the population, would always have the upper hand. The two elections in 1957 and 1961 demonstrated to the African Guyanese political leadership that if it wanted political power, it would have to obtain it in coalition and later sustain it through electoral malpractice. And so, after the 1964 elections, in which the PPP obtained the plurality, the PNC and UF, together holding a majority of the seats in the parliament, formed a coalition government. The coalition ended in 1968 and the PNC resorted to electoral malpractice thereafter to maintain political power.
In 1957 the PNC merged with the United Democratic Party (UDP). The UDP, led by John Carter, a prominent lawyer of Mixed heritage, represented the interests of the Mixed and African middle and professional classes. At some point between 1973 and 1985 the support of these groups for the PNC started to wane. But it mostly returned with the election of Desmond Hoyte as President. These groups showed their electoral clout in 2006 when a section of it abandoned the PNC and supported the AFC. Many of these votes went back to the PNC after the election of David Granger as its leader, but it is believed that a significant number remained with the AFC. At the 2011 elections the APNU obtained 40.81 percent of the votes, much in line with its record in free and fair elections, and the AFC got 10.32. The AFC benefited from the loss of between 5 to 7 percent of its votes from previous elections. It obtained 48.60 percent.
Bharrat Jagdeo’s incumbency as General Secretary of the PPP and Opposition Leader makes him the most authoritative figure within the PPP. The ease with which he swatted away the dominant influence of Donald Ramotar, Clement Rohee and Komal Chand in serious decision-making within the upper reaches of the PPP after the loss of the 2015 elections, testifies to his now enduring control of the direction of the PPP, last manifested when he secured the nomination of Donald Ramotar as the presidential candidate in 2011.
Komal Chand had always been a vocal and independent minded leader within the PPP. This was derived more from his inclinations than from the power base he held as General Secretary of GAWU. The need for restructuring of the sugar industry arose at around the time of Mr. Jagdeo’s accession to office in 1999. Mr. Chand’s positions in debate, particularly in relation to the sugar industry, became more pointed and vocal as time went on, especially during the 2006 to 2011 period when serious problems began to surface. But the problems which have been emerging in the sugar industry and the length of time for which Mr. Chand has held leadership office in GAWU – since about 1985 – have weakened his grip. Thus, he lost his position as a member of the executive committee of the PPP after the 2016 congress of the PPP. Composition of this body is determined by a select few a day or two before the vote and a sufficient number of members of the central committee, which elects the executive committee, are given the word as to who to support. Mr. Chand’s orchestrated loss would have told him that his time in the leadership of the PPP and GAWU was drawing to an end.
The Mayor and Councillors of the City of Georgetown (the City Council) have voted overwhelmingly to support a renegotiated contract for the establishment of parking meters in certain parts of the City. The major change is that the hourly rate has been reduced from $200 to $150 while an eight-hour day would cost $800. There were other minor revisions and concessions. The effect of the reduction by $50 an hour is like throwing a crumb to the citizenry.
The popular upsurge during last year against the imposition of parking meters was as a result of the high and unaffordable charges. It was pointed out that they were proportionately higher than parking meter charges in New York, a city that was 500 plus times wealthier than Georgetown where the charges for parking is US$1 an hour, the same as was proposed for Georgetown. While the protests were successful in derailing the plans of the City Council, with little or no help from the Government, there was also a legal element. Two cases were filed. One has been heard in which the Court ruled that the bylaws were not lawfully promulgated by the Minister. This means that before the parking meter system can be reintroduced and fees charged, the bylaws have to be lawfully put in place by the Minister.
There are frequent, frustrated, refrains from observers that it is Guyana’s political parties that are mainly responsible for promoting the culture of ethnic dominance and without it, Guyana’s politics would not be dominated by race and instability. This is not true. Guyana’s main political parties reflect the social, economic and political aspirations of the people of Guyana. The fundamental feature of Guyana which determines these aspirations is its ethnic composition and history. This has been characterized mainly by separate struggles against employers and the colonial state for survival. The lesson that has been learnt is that whoever controls the state controls the distribution of its limited resources. The struggle for control of the state was a natural outcome of the nature of our main political parties and their fundamental, though unspoken political objective – ethno-political dominance.
By the time the first popular political party, the Peoples’ Progressive Party (PPP), emerged, it was recognized that ethno-political dominance, which had already reared its head after the second world war, was a negative phenomenon that will hinder Guyana’s political development and its main objective of Independence from Britain. The PPP was therefore organized with a multi-ethnic, multi-class, leadership. It attracted widespread support. However, as is well known, colonialist intrigues and internal opportunism led to what was in effect a departure of the “moderate” faction of the PPP. That faction later became the African led Peoples’ National Congress (PNC) which got its support mainly from the African Guyanese workers and farmers. Its merger shortly after with the United Democratic Party (UDP) brought support from mixed Guyanese and African middle class. Indian Guyanese gave their support to the PPP.