Queries in support of Decision Rule 2

(No overall economic justification for a Guyana state-owned refinery)

Introduction
In last week’s column I sought to recall, for the benefit of readers, several key observations and conclusions that were drawn from my earlier review of refinery economics in order to support Decision Rule 2. This rule posits that in the present circumstances, there is no overall economic justification for proceeding with a state-owned, controlled and operated oil refinery in Guyana. This followed on the results of the Pedro Haas commissioned desk-review feasibility study on behalf of the Ministry of Natural Resources (MoNR). Today’s column wraps up last week’s presentation. Specifically, it responds to several queries I have received concerning Decision Rule 2. After today’s responses, I shall engage other arguments, especially those regarding the claim that a state-owned oil refinery must be constructed in order to serve as the leading edge of government’s drive to maximize potential downstream value-added, consequent to Guyana’s significant oil and natural gas finds. When undertaking this next task, I shall similarly draw upon my earlier reviews (March 26, 2017 – May 17, 2017) of the literature on local content requirements (LCRs), in the oil and natural gas sector.

Queries I – II
At the last count, readers have made five pointed queries. And these will be addressed today in random order. First, I was asked about the likelihood of the Pedro Haas’ Study being made public. Regrettably, I do not have the answer to this. Privately, I have been desperately hoping that this would have been done by now, given the wide circulation of the Power Point presentation made in May this year…..

Comments  

Local content requirements do not support wastage of public resources on an oil refinery

Introduction Today’s column, and the next, continues to evaluate the feasibility of a Guyana state-owned oil refinery, promoted by many as the leading edge of a local content requirements (LCRs) regime aimed at maximizing downstream domestic value-added in the coming petroleum sector.

By ,

General refinery economics reveals no overall economic justification for a state-owned oil refinery

Introduction Last week’s column focused on reviewing the results of Pedro Haas’ feasibility study for a state-owned oil refinery, sponsored by the Ministry Natural Resources (MoNR).

By ,

Decision Rule 2: No overall economic justification for a state-owned, controlled and operated oil refinery

Introduction Last week’s column was aimed at walking readers who are unfamiliar with economic feasibility studies, through the PowerPoint presentation by Pedro Haas of Hartree Partners, on the feasibility study for a state-owned Guyana refinery.

By ,

More on formulating Decision Rule 2: The Haas Guyana Refinery Study

Introduction Today’s column aims at walking readers through the Guyana Refinery Study, presented in a talk by Pedro Haas of Hartree Partners, in May this year.

By ,

Formulating Decision Rule 2: A state-owned oil refinery

Introduction Last Sunday’s column (September 3) marked one year of uninterrupted weekly articles addressing the topic: ‘Guyana in the coming time of its oil and gas industry, circa 2020’.

By ,

Your browser is out-of-date!

Update your browser to view this website correctly.

We built stabroeknews.com using new technology. This makes our website faster, more feature rich and easier to use for 95% of our readers.
Unfortunately, your browser does not support some of these technologies. Click the button below and choose a modern browser to receive our intended user experience.

Update my browser now

×