-says framework has to be laid
Canadian High Commissioner David Devine says he believes that Guyana is on the verge of a potentially big oil find but he cautioned that harnessing this would require a transparent framework and policies to ensure sustainable development gains.
Devine made these disclosures in his presentation at the Central Corentyne Chamber of Commerce and award ceremony held recently. “Development is about transforming the lives of people, not just transforming economies,” he said in his opening remarks, quoting Columbia University Economist and Professor Joseph Eugene Stiglitz.
In this context, he said discoveries in the sector, particularly from oil and gas exploration, will give Region Six and Guyana a unique chance to generate revenues needed to invest in education, health and infrastructure with a view to alleviating poverty.
The oil and gas sector is one of the most profitable industries in the world but its success depends on several variables such as the implementation of effective policies and legislation to ensure sustainable development gains from the sector for the citizenry; open and transparent mechanisms to manage the gains of the sector in an equitable manner; local industry preparation to effectively position businesses to exploit the multitude of opportunities that are created in support of an oil and gas sector.
In addition, a greater understanding and awareness by stakeholders of the importance of the oil and gas sector in the country’s development and contributions to the economy, is needed while addressing poverty alleviation and its associated socio-economic hardships.
The high commissioner also acknowledged that while the recent news about drilling expeditions has not been as favourable as expected that does not mean that a discovery will not be made. Past examples of the development of prominent oil fields have shown that persistence is key. “You need to build incrementally on the drilling research to effectively target a commercial field.” According to the high commissioner, in Newfoundland, off the east coast of Canada, 42 wells were drilled before the eventual bonanza of 3.1 billion barrels of proven oil reserves was eventually found as well as 17.5 trillion cubic feet of natural gas.
In the meantime he urged the private sector to capitalise on the opportunities from natural gas resources to maximise in an optimal way for the development of Guyana. “It is very important to ensure that the current window of opportunity is not wasted,” he said.
Due to its geography, Berbice is suitably located to maximise on the peripheral industries that the oil and gas sector can spawn in its evolution. To reinforce this fact, there are about 116 secondary industries that can vary from catering to the provision of health care, environmental management, laboratory analytical support and a number of logistical and supply services that support the activities in the sector.
Additionally, the potential for job creation in Berbice will expand tremendously, giving rise to new career fields and prospects for residents. It will also open new fields of study for students that can contribute to the growth of the sector or general business development in the region.
The high commissioner said that “there should be little doubt that Guyana is on the verge of realizing an opportunity of immense proportions. The vast reserves of hydrocarbons in the offshore basin represent the promise of a better future for all Guyanese.” Properly managed the benefits can be shared by all sectors and as such it is necessary to prepare.
