Trump’s increased drilling & implication for Guyana

Dear Editor,
Donald Trump will be sworn in on January 20 for a second time as President of America. Congrats to the 47th President who also served as 45th. Guyana is relatively insignificant and low priority in the foreign policy interests of USA, but Guyana’s huge reserves of oil will attract the attention of Washington. Trump plans to open up USA to drilling. Trump’s Drill, Baby, Drill campaign pledge will have implications for Guyana.
The term ‘drill, baby, drill’, referring to increasing oil exploration and production in USA which inevitably will impact price (downwards) for a barrel of oil. In Guyana, with oil prices likely to nosedive in a couple of years when more oil enters the market, impacting revenues, the government should encourage Exxon and other oil companies to carry out the Trumpian mantra and rapidly increase production as soon as practicable. American companies and Guyana will benefit tremendously from increased production with enormous revenues at least in the short term. Price per barrel may drop, but with increased production, more revenues will be earned. If Guyana does not up production, other countries (USA, Russia, Saudi Arabia, etc.) will and capture the market and Guyana will lose opportunity for revenues critical for development. Also with countries turning to wind and solar power and more turning to hydro power, demand for oil will fall in the next few years, significantly triggering lower prices that will have longer term implications for revenues for Guyana.
With stubborn inflation, wars and conflicts around the world, political issues in an election year, uncertainty at the border with Venezuela and President Trump’s expected foreign policy, it is a no brainer that Guyana must be encouraged to ramp up production taking advantage of continuing demand for oil. Government must encourage Exxon to up production beyond what is already planned. This will lure other potential oil investors. Investment creates high paying jobs and fill the coffers with money for various projects. Increased oil production will also lead to more revenues by way of royalties, profit sharing, taxes, etc., for Guyana.
But Guyana faces challenges in increasing production. There  has been conflict between or among advocates who give primacy to one over the others — the environment, business, oil drilling, and those in opposition to extracting the oil from under the ocean floor.  Those who champion the latter are not realistic and are insignificant in numbers; they are not reading the global analysis on oil, and in any event will not succeed at stopping or even reducing oil production. The country is going full steam ahead with oil production and progress will not be stopped. The oil industry will continue unabated till the fossil runs out. Most Guyanese, including businesses, are supportive of “drill, baby, drill”, while also supportive of policies to protect the environment of harmful effects tied to oil production. Producing more oil does not mean abandoning goals of clean air, clean coast, clean water and protecting flora and fauna. Oil producers can do both, and technology today has led to cleaner production of oil and gas by Exxon and other companies; and there are no recent adverse reports in Guyana that they are not. With better technology, oil production is becoming more efficient and less risky. As the lone energy producer in Guyana, Exxon, as per several reports, has been taking maximum care to minimize and eliminate pollutants escaping into the environment. Exxon must be applauded and encouraged to taking maximum measures to protect the environment during its operations and for  working with local businesses in its operations. Government must not discourage, but encourage and work with all the oil companies to behave responsibly towards the environment and the country in terms of corporate welfare and training, hiring, local content contracts, etc.
It is commonly known that Guyanese businesses and the public at large are major beneficiaries of the oil industry. Exxon announced multi-billions paid annually to businesses for local content tied to the oil industry. There must be negotiations for more local content and training for more youngsters.
Government must avoid measures that will lead to reduced production of oil in Guyana as such policy doesn’t do the country any good. The last thing Guyana wants now is to push companies out to countries that offer better investment climate. Undemocratic countries with authoritarian leaders who don’t care about rights and the environment will gladly accept oil companies to drill. Other countries are not enforcing rules on the environment, but Guyana tries. Guyana must not alienate oil companies to drive away investors.
More production means more revenues and availability of funds for a boom in infrastructure building and construction. Trump’s Drill, baby, drill applied in Guyana ultimately will translate into a better standard of living.
Yours sincerely,
Vishnu Bisram