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.
Minister Khemraj Ramjattan, of “Hall Yuh Ass” fame, responded to my article last Sunday, entitled, “To preserve itself, the AFC must resign from the Government,” with the following epithets – “nonsensical;” “vacuous chatter;” “idiotic;” “we are not going to block [the] chatterati;” “foolish;” “Ralph kept his mouth shut then he got shelved now he is talking plenty;” “if he wants to be a politician he should go form a party then know what it is;” “these fellas love to talk from a distance like parrot, you know parrot telling donkey how to bat but stays up in the tree, they want to stay up in the tree and not do the batting themselves, you write exactly what I say there.” Sadly, by succumbing to the temptation of the politics of abuse, Mr. Ramjattan exposes the inability of the AFC to answer serious questions about its political posture.
Would you believe that this was the same Khemraj Ramjattan who embraced me at the post 2015 election celebration at the Pegasus Hotel in congratulation for what he believed was my contribution to the victory of the APNU+AFC coalition? Well, he did. At the same event, Prime Minister Moses Nagamootoo thanked me in the presence of several persons. Now Minister Ramjattan is abusive and PM Nagamootoo uses the Chronicle to denigrate me.
The collapse of the Palmyra foundation structure intended to support an Indian Arrival Monument to be unveiled on Arrival day was reported by the Stabroek News on April 27. Stabroek News had interviewed a Mr. Marlon Cumberbatch who said he was the supervisor of the construction company. He couldn’t say what caused the collapse but suggested that the project needed to be redesigned. Mr. Cumberbatch stated that the construction company would be dissolved. Workers complained that they had not been paid and sources told Stabroek News that Mr. Cumberbatch was indeed the contractor. The choice of contractor, the design of the project, the reason for the collapse, all remain state secrets.
While not much has been announced, it appears that the government has embarked on policies to make the small man into a real man by opening up opportunities in construction and other areas. There have been complaints for a long time that Guyanese contractors of African descent were being discriminated against. Bringing a contractor from Linden to undertake a contract in the Corentyne, suggests that the policy of redress, and a lop-sided one at that, is in full swing.
The campaign against the unilateral and undemocratic imposition of parking meters in Georgetown is at last bearing fruit. The Government has been persuaded to intervene and had asked the City Council to suspend the operation of the contract until a renegotiation of its terms can be effected. At a time when the Government has been taking criticism for being indecisive, it has shown commendable resolve in this matter, even though a bit late.
The campaign against the parking metes was sustained by the outrage of citizens at the exorbitant charges imposed. These charges are simply not affordable by most of the people who are employed in Georgetown and travel to work in their motor cars. The same case that has been made by teachers at Bishops High and staffers at the Bank of Guyana, who were given free parking by Smart City Solutions (SCS), applies to most others.
The ruling elite in the United States, supported by those of Europe, are becoming apoplectic at the prospect of a rapprochement between the US and Russia, which could lead to the lifting of sanctions against Russia. Not since President George W. Bush looked into the eyes of President Putin and saw his soul, has the prospect emerged of better relations.
The US press, reflecting the ruling elite, has demonized President Putin as an evil genius intent on restoring the power of the old USSR and the greatness of old Russia at the expense of the US and its allies. The elite is convinced that President Putin is so clever that in any encounter between Trump and Putin, the latter will inevitably prevail. This has reached almost hysteria stage since the CIA concluded that Russia intervened in the US elections by hacking into computers of the Democratic Party and officials and leaking it to Wikileaks. No other narrative, not even Russia’s accusation of Hillary Clinton’s intervention in Russia’s presidential elections against President Putin, is permitted to see the light of day.