Decision Rule 3
Last week’s column continued the exploration of Guyana’s natural gas prospects, both “associated with/and not associated with” its recent substantial petroleum finds. That discussion has placed me in a position where I can now confidently proffer a third decision rule. This Rule posits that: in light of Decision Rule 2, which readers would recall advances the view that a state-owned oil refinery is neither commercially nor economically justifiable; (mainly due to 1) its estimated cost and 2) Guyana’s present financial and economic circumstances) I would recommend Government shifts focus towards exploring the potential usage of natural gas as a substantial replacement investment in downstream value added for the petroleum sector.
Significantly, over the medium to long term, last week’s column also drew attention to Government’s commissioning, through Energy Narrative (a network of Caribbean energy experts and strategic market analysts) a “desk study” designed to evaluate the size, along with, the technical and commercial options available, for developing Guyana’s natural gas resources…..