Recommendations for development of the Oil and Gas Sector

Dear Editor,
It was said to me recently that the environmental concerns raised around the oil sector seem exaggerated. It was also said that the developed countries took their resources and made the most of them while leaving a mess for others to deal with, and that we should do the same because our overall impact on the environment is negligible when compared to what the developed countries have done. Basically, the point was that we, too, deserve to be rich.
I have no argument with this line of reasoning. Yes, we Guyanese also deserve to be rich and make the most of our resources. The key, however, is to ensure that we do so in a smarter way, that maintains the healthy lifestyle that we are used to. Many First World countries have gotten rich off of their resources, but have also paid a hefty price in the health of their citizens.
Expanding on the discussion around the oil refinery and the petrochemical plant, if we consider the recent studies on the impact of these two industrial components of the oil sector, we can see how devastating they can be on the health of the surrounding communities.
For example, studies in California have shown that communities near oil refineries have an increased risk of cancers, birth defects, neurological damage, difficulty breathing, and blood disorders.
When it comes to petrochemical plants, the risks are similar. Within the United States National Library of Medicine, there is a publication that states “scientific studies reported a high incidence of lung and bladder cancer in Taiwan, Italy, and USA, as well as an excess mortality of bone, brain, liver, pleural, larynx and pancreas cancers in individuals living near petrochemical complexes from Taiwan, Spain, Italy, United Kingdom and USA.
“Thus, human exposure to certain carcinogenic pollutants emitted from petrochemical industries might increase the incidence of some cancers and cancer mortality.” Additional studies are required, but the evidence is there. Hence the need for many additional specialty hospitals. This development strategy requires it.
If the current approach taken to manganese mining in the country is any indication of how these industrial components of the oil sector will be managed, then the risks of adverse exposure will be extremely high.
We must also consider that these industrial capabilities can be effectively and efficiently outsourced. Excess capacity in the industry does allow Guyana to reap the benefits of this part of the sector without taking on the risks. Trinidad has the capacity, experience, and capabilities. They have managed the environmental, health, and safety risks associated with these two industrial components of the sector, and there is no need for Guyana to reinvent the wheel on this.
Outsourcing these components would allow us to maintain our ecotourism credentials while also keeping our citizens in a healthy environment. Being fully vertically integrated is not always the best option. The pros and cons must be considered in order to make the best ‘make vs buy’ decision.
CRG supports outsourcing these capabilities to Trinidad if this is the chosen path for the sector’s development. However, our preferred approach would be to not use the petrochemicals in our agriculture sector, but instead sell them to offshore customers who prefer the non-organic approach to their food production.
Maintaining an organic-focused agriculture sector in Guyana aligns not only with our ecotourism credentials and pursuits, but also effectively helps maintain a sustainable environment and a healthy nation.

Best regards,
Jamil Changlee