President Ali calls for fiscal prudence even in “Golden Era”

– says annual fiscal packages carefully crafted to withstand pitfalls in oil price

President Dr Irfaan Ali issued a pointed call for fiscal prudence on Friday, warning that global oil price volatility poses serious risks to national budgeting if not approached with caution and stressing that the country’s financial planning must reflect the realities of an unpredictable global environment.
The Head of State made the remarks while attending the annual Guyana Oil and Gas Energy Chamber awards and induction ceremonial dinner at the Guyana Marriott Hotel. Speaking before an audience of industry executives, investors, and policymakers, he emphasised that the global oil market is not a linear or stable one, and even a single geopolitical or regional disruption can change price benchmarks instantaneously. He cautioned strongly against the belief that current revenue security provides long-term insulation, noting that the notion of being “flush with money” is only “currency of the moment”, a fleeting mindset that could place the economy under strain if current expenditures grow disproportionately now.
“For a matter of fact, there are various debates now as to where do we set oil prices globally in crafting international budgets and markets, because one incident in different regions can change the benchmark instantaneously. That is why, as a Government and as a people, we have to exercise care and caution in the way we develop our budgets to avoid the pitfall of running up current expenditure to the extent that it becomes difficult to manage in the future. So, the idea that you’re flush with money is an idea of currency of the moment. But as policymakers, as a responsible Government, we must make decisions that will enable generations after generations to enjoy the prosperity we are building today. So, the resources exist not just to meet needs but to leapfrog us into the future. And that is what we are doing,” the Guyanese leader stated. The President said that while Guyana is currently operating in what is described by many as the nation’s “Golden Era”, the period must be defined by strategic investment, not unchecked consumption. He pointed to ongoing Government efforts to convert natural resource earnings into durable, productive national assets – specifically investments in infrastructure, fabrication, logistics, training, construction, technology, catering and other service-based pillars already experiencing unprecedented demand growth due to the development surge in the oil sector. The Head of State further underscored that a responsible Government must take the long-term route, even when that route is not the easiest or most popular. He said the nation’s resource strategy is being used to leapfrog Guyana into future prosperity through the creation of productive assets, expansion of economic pillars, job creation, and income generation – decisions he said are intended to safeguard prosperity for generations after generations, not just address present-day needs.
In highlighting the global supply-demand outlook, President Ali pointed directly to projections from the International Energy Agency, which show that global oil demand will continue to grow modestly from 2025 to 2030, though at a slowing rate – rising by less than one million barrels per day annually in the mid-2020s, reaching approximately 105.5 million barrels per day by 2030.
“On the supply side, however, the world is expected to add significantly more capacity than demand requires. Non-OPEC (Organisation of the Petroleum Exporting Countries)-plus producers, including the United States (US), Brazil, Canada, and new producers, such as Guyana, are forecasted to drive the bulk of this growth. So that’s the complexity of the market we are operating in. That is why managing the costs and cost centres is so critical, because this is the real environment. By 2030, global supply capacity could rise to 114 to 115 million barrels per day, well above projected demand, resulting in a persistent supply overhang. Unless large cuts or disruption occur, the market will likely remain comfortably supplied through the decade. No major mismatch in supply and demand is projected,” he explained.