Introduction: Cost-Price Relation
Two weeks ago (October 23), this column had introduced as part of the continuing discussion of “Guyana in the coming time of oil and gas production and export”, the notion of the “cost-price relation” that could emerge after production starts. The reason for considering this, is that the greater is the positive difference between the unit total cost of production and distribution, and the price received for a unit of sale, the greater is the likelihood of gross profit (surplus) flowing to the producing firms. And, further, the greater also is the likelihood of the industry operating as a sustained and successful commercial venture.
It was argued then however that, at this early stage (with production about 5-7 years into the future),
