US oil-drilling plans: Guyana must adapt, examine all variables, plan carefully – VP

Vice President Dr Bharrat Jagdeo has dismissed concerns about United States (US) President Donald Trump’s plans to increase oil drilling in the US, stating that Guyana will now have to tailor its policy to these changes in the global market
Speaking at his weekly press conference, Jagdeo emphasised that the oil market’s future is anything but predictable, and countries dependent on oil revenue, like Guyana, must remain vigilant as they plan for the future.
With the US ramping up its oil output, experts are warning of a potential glut, which could have significant consequences for oil prices worldwide.
“That is why you have to be cautious. There is that possibility that prices could come down. But also, the converse of it is that that will go towards increasing supply, which forces or puts a downward pressure on oil prices… You have to take account of all these variables when you plan future expenditure,” the Vice President said.
On the flip side, Jagdeo discussed the implications of the US’s exit from the Paris Climate Agreement and the cessation of renewable energy projects under President Trump’s administration.

With Trump halting the development of wind and solar energy projects, the demand for fossil fuels, including oil, could increase.
This move, he noted, could counterbalance the potential oversupply, as it would drive investments toward fossil fuel-related sectors, keeping the demand for oil relatively steady.
“President Trump is exiting the Paris Agreement and also stopping the renewable energy projects in the US. He said windmill projects and all of the others. So if the supply would have been enhanced by renewable energy coming on stream, that they’re not going to come on stream any longer. So that would tend to increase the demand for fossil fuel-related sort of investment on demand. So it could balance out there. No, no, as an oil-producing country, it’s not a concern.”
“It is something that the policy makers have to analyse. When you think about your policies here in Guyana, your budgetary policies and everything else for that matter. So we are very much aware of what he has said. So hence the need for more fossil fuel-related investments,” he added.