Home Letters Time to learn from the experiences of others
The recent reported dire condition of the Venezuelan oil & gas industry is worrisome for Guyana. The lack of upkeep, which has led to gas and oil leaks, draws similarities to our sugar industry. Due to the shutdown of their industry because of the embargo, much of the infrastructure has deteriorated, and leaks are becoming more evident. These leaks and spills run into the tens of thousands.
Similarly, GuySuco is now faced with extensive rebuilding, due to the closure and neglect of sugar estates. If the struggles with the sugar industry is any indication of things to come, then we should brace ourselves for the worst as the oil industry develops. It has already started on the wrong foot, with the excessive amounts of gas being burned into the atmosphere. Venezuela is an experienced and large player in the oil industry, and what we are seeing today says clearly that Guyana is far from prepared to effectively run this industry without problems in the future.
For this very reason, safeguards beyond what is being considered as standard today against poor performance and mismanagement of the oil & gas industry, have to be put in place. A study of third-party companies and OEMs from around the world which manage this industry the best should be reviewed, and a compilation of best practices developed for incorporation into the industry production and management agreements. This is proving to be extremely vital for the profitable, safe, and environmentally-friendly development of the oil & gas industry.