Introduction
While the fiscal rules of Guyana’s PSA indicate the sources of its oil revenues yield, the finds/discoveries indicate the quantity, quality and trend in petroleum reserves accumulation and its reporting. Taken together these two allow us to estimate the likely Daily Rate of Production, DROP. Since starting this Sunday column series on oil and gas in Guyana, I have observed repeatedly that I am consciously adopting a conservative stance in regard to the Guyana Government Take ratio, but remain “strongly bullish” in assessing Guyana’s petroleum reserves potential. Upfront therefore, in this re-visit of the topic I start by reasserting as a baseline that my original estimate of Guyana’s long-term crude oil reserves in its reservoirs is about 13-15 billion barrels of oil equivalent, boe.
