Dear Editor,
It seems to me that our luck just keeps getting better. Exxon’s increased estimate of Guyana’s oil reserves raised the total figure by 25 per cent. That puts us at a remarkable reserve amount of more than four billion barrels of oil.
Exxon’s explanation of the breakdown of activities is even more promising. Liza Phase 1 is in the process of development and will produce up to 120,000 barrels of oil per day. Liza Phase 2 will be even larger, up to 220,000 barrels of oil per day, and is expected to start up in 2022. Exxon also conducted a well test on Liza-5 to explore the northern part of the field.
Then there’s the Payara discovery, just above the Liza field, which has given Exxon a reason to start a third development phase, which could be brought forward some time next year. Additionally, there have been other discoveries in the Turbot and Longtail areas which could yield a fourth development.
This means that in addition to huge reserves, our assets are diversified. Guyana could potentially have a total of five active developments in the near future, and with that amount of production will come a broad mix of field operators and providers bringing jobs, investment, and infrastructure. Which brings us to the real question: what does this announcement mean for Guyana and how will this benefit Guyanese?
We all know that there are many ways in which Guyana could benefit from revenues and investment. Obviously, the increased reserve estimates mean even higher revenues for Guyana. Energy analysts estimate that Guyana’s Government take could reach US$15 billion annually by around 2030. This figure could be even higher if more discoveries are made. A more immediate effect, though, is Guyana going to see a massive uptick in foreign direct investment, benefiting numerous industries across all of Guyana.
The urgent question is how will we use this blessing? We will have enough money to finally start critical infrastructure projects. We could improve healthcare access for many citizens. We can focus on education and ensure that Guyanese are getting the skills necessary to turn oil revenues into a lasting foundation for a diverse and sustainable economy. We can also implement the Green State Development Plan, bringing renewable energy production to all regions of Guyana.
What we need now, with oil and elections looming, is a clear course of action. We have the potential to make an immediate improvement for Guyanese today. But more than that, we have an opportunity to provide a very bright future for our children. We cannot let that pass by.
Sincerely,
Clement Smith
