Guyana’s entire future may be threatened by oil greed

By Mark DaCosta- On April 25, 2023, Guyanese Economist Ramon Gaskin wrote to the People’s Progressive Party (PPP) government.  Gaskin has requested information about a proposed US$3 billion gas-to-shore project. His letter was sent to Commissioner of Information Charles Ramson S.C, and copied to Vice President Bharrat Jagdeo, Minister of Natural Resources Vickram Bharrat, and Minister of Finance Ashni Singh.

During a subsequent interview, the economist said that “the cost of the project – US$3 billion, is 75 percent (three quarters) of Guyana’s total national budget. The economist said, “This is the biggest, most expensive project ever undertaken in this country, yet, amazingly, there is no information available about it, and the PPP government is not telling Guyanese anything.” Gaskin said that with that huge amount of money flowing around the PPP regime, he is worried about corruption. Gaskin has received no response to his correspondence and enquiry.

At this point, Guyanese may wish to consider certain facts:

It is a fact that while the world is turning away from the use of fossil fuels – oil, gas, and coal –the PPP Government seems to be betting Guyana’s entire future on such products.

According to a report by the International Energy Agency (IEA), the use of fossil fuels has plateaued, and will only continue to fall significantly in the future. The report states:

“The global energy crisis triggered by Russia’s invasion of Ukraine is causing profound and long-lasting changes that have the potential to hasten the transition to a more sustainable and secure energy system. Today’s energy crisis is delivering a shock of unprecedented breadth and complexity. The biggest tremors have been felt in the markets for natural gas, coal and electricity – with significant turmoil in oil markets as well, necessitating two oil stock releases of unparalleled scale by IEA member countries to avoid even more severe disruptions. With unrelenting geopolitical and economic concerns, energy markets remain extremely vulnerable, and the crisis is a reminder of the fragility and unsustainability of the current global energy system.”

One analyst told this publication the government ignoring what the experts are saying the use of fossil fuels will continue to decrease exponentially suggests they are putting all of Guyana’s eggs in the oil basket.

According to him this may be because pursuing oil money allows for the government to get it into some people’s pockets.

In a 2021 interview, climate expert Seon Hamer, a lecturer at the University of Guyana, stood beneath a wild almond tree next to the seawall, and told the media that, “All of this could be gone [owing to climate change].”

Hamer has seen the climate models. In the worst-case scenario, they predict that rising sea levels would eventually reach far inland and this capital city [of Georgetown] would be completely submerged.

But, the sea is not the only peril to Guyanese.

“We’ve seen a lot more high-intensity, short-duration rainfall,” says Garvin Cummings, the head of Guyana’s Hydrometeorological Service.

That shift in rain patterns [due to climate change] is overwhelming Guyana’s drainage systems, with calamitous results.

So, the question must be asked again; why is the PPP regime turning away from a “green” model of development, and embracing a petroleum sector that will only contribute to the flooding and wiping out of our entire coast?

A media report by United States-based National Public Radio contains a quote by Vice President Bharrat Jagdeo that may answer that question. The following is an excerpt from that report:

Guyana is trading in its green halo in exchange for something far more profitable: oil revenue.

Companies had long suspected there was oil off Guyana’s shores — the country is located right next to oil-rich Venezuela — but no one ever found any. Then Exxon decided to take a gamble and look in deeper waters. The discovery the company announced in 2015 was extraordinary: One Exxon executive compared it to a “fairy tale.” Since then, even more oil has been found in Guyana’s waters.

Guyana [under the PPP] is determined to develop this oil as fast as it can.

 “We have a small window to get as much [oil money] as possible out,” said Jagdeo.