Introduction
This week I turn to consider the second and third of the three relations, identified last week, as informing the petroleum metrics/revenues of the Guyana Petroleum Road Map, and, relatedly, the Buxton Proposal. This column also concludes my presentation of Guyana’s Petroleum Road Map. I must remind readers that these metrics have already appeared, at various stages, in my presentation of the Petroleum Road Map.
As indicated last week, the second of the three relations zeroes in on the estimation of overall profit (surplus). This profit (surplus) is expressed as the difference between the average price per barrel of oil equivalent (boe) and the average cost of producing same. Brent crude oil price behaviour is used as a proxy for Guyana crude. For purposes of the Road Map, I had projected a price of US$70 per boe at “full ramp-up”. To recall, full ramp-up is the stage when Guyana’s daily rate of production (DROP) equals 1.5 to 2.5 million boe (mboe) per day.
