…content in oil industry
Natural Resource Minister Raphael Trotman got his buckta in a knot over locals’ challenging his stance on Local Content Policies (LCPs). He claimed suddenly, everybody and their uncle’s an “expert”! Well, your Eyewitness doesn’t know what the hissy fit’s all about: if HE and four of his other Cabinet colleagues can suddenly develop the expertise to beard the lions of Exxon in their headquarters, to be briefed on all sorts of technical oil (oily?) matters, why can’t ordinary citizens also become experts on LCPs?
For one: this LCP business didn’t just leap full blown from Trotman’s (expansive!) brow!! Countries producing oil and gas have for decades wised up to the opportunities opened up with the launch of oil-and-gas production. And as is their wont, the World Bank has extensively analysed and summarised these policies for our benefit. For instance, your Eyewitness has before him, as he writes this article, a copy of “Local content in the oil and gas sector” (WB 2013) open in another window.
And they confirm Trotman’s just blowing hot air through various orifices? Your Eyewitness thinks we could do worse than quote the World Bank’s report: “Intuitively, limited or primitive economies would face considerable challenges with LCPs that hinge on quickly establishing a domestic supply service capability, and would very likely struggle with the creation of more complex forward links.”
So, let’s start with the fact that we’re underdeveloped in general; we are even more so in particular when it comes to extracting oil and gas. Well, back in the 1980s, so were both Norway and Britain, which discovered massive quantities of petroleum under the North Sea, and each recognised they had to craft LCPs for their respective benefit.
Norway, accepting it was comparatively underdeveloped industrially, chose to stretch out its extraction rates so that it could develop both forward and backward linkages with the rest of its economy, which could lead to growth and also be self-sustaining. Britain decided the opposite, because of its wider established base in the pertinent areas, like valves, pipe fittings, etc. So far, Trotman hasn’t even raised this point in his wild rush to get his government’s hands on that “oil revenue” ASAP! To heck with a phased development and those necessary linkages! Let that oil flow, boy!!
Another not-so-mundane question is whether Trotman has inserted into law the need for the oil companies to submit annual Local Content percentages? And if so, whether Guyana will be using such performance as a criterion for awarding future exploration and production contracts?
If, for instance, Kazakhstan can insist on both requirements, what can’t Guyana, with the self-born oil maven Trotman at the helm?
…natural disasters
Back in the day, when congratulated on our good fortune by fellow West Indians — that we didn’t have natural disasters like hurricanes and earthquakes like them, Guyanese would counter indignantly, “We got Burnham!!” That used to shut them up!! Well, the northern West Indies is being pounded by Hurricane Irma, but, from the television coverage, that’s just an afterthought to what really matters — the possible effects if it hits Florida.
So what’s different – some were always more equal than others, no? But what about our local disasters? Well, the PNC (APNU isn’t even a fig leaf – ask the AFC and WPA!!!) have promised us time and again that they plan to finish what Burnham started. And what’s going on (down?) it’s clear these fellas mean business. Burnham tried to intimidate the Courts. Well what’s this claim that, “my perception is as good as yours?” to the Chief Justice.
Then what if the economy’s heading south? Spending on the constituency’s heading north!
…boys doin’ good in cricket
Bleary eyes, yes! But quite chuffed, thank you! The Warriors won convincingly on Wednesday night; and so they will tonight.
Like your Eyewitness said before, this year, our boys peaked at just the right time!! Go Warriors!! Go all the way!!
