Dear Editor,
The recent statement made by the country manager of our supplier ExxonMobil was quite revealing. The sunk costs he mentioned are the equivalent of approximately US$2.75 per barrel of declared discovered oil. Many other suppliers would jump at the opportunity to replace ExxonMobil by offering a more equitable contract. Even our decommissioning funds, which they are using free of charge, have not been returned as yet. We are basically financing their operations while losing over 7% on the funds which they have grabbed for their own use over a 20 to 30 year time period. The first step is to have these funds placed in a joint account from which ExxonMobil may borrow at a competitive rate. Once this has occurred, we should then also discuss how we improve the Production Sharing Agreement (PSA) and the Environmental Protection Agency (EPA) approval process. The EPA must revisit their mandate and ensure a very high level of compliance is met before further production occurs. We do value ExxonMobil as a supplier, and welcome a mutually beneficial arrangement for the long term, but the reality is that ExxonMobil is not the only game in town. They should consider being more receptive to renegotiating the PSA while maintaining investor confidence, which will not decline if 10% is added to our Nation’s bottom line.
As temperatures continue to rise and we become more affected by and vulnerable to changes in sea levels and rainfall, the need for working on an alternative to fossil fuels will become more urgent. Many would say that the time for urgency is now upon us. Our Nation continues to have an opportunity to shift to cleaner renewable alternative energy sources while being compensated for leaving the oil in the ground as we are being compensated for leaving the trees in the ground. Ideally, revisiting the UN’s initiative on climate change should be our top priority, and we must find a way to work with ExxonMobil to help them and our country shift to wave energy, which will leverage the current technology available and also leverage ExxonMobil’s proven capabilities to work on the sea floor. ExxonMobil is in the business of adding shareholder value to its stakeholders, which this approach allows, and their leadership must embrace the opportunity to improve their corporate reputation and commitment to being a responsible partner. ExxonMobil’s statement, “The need for energy is universal. That’s why ExxonMobil scientists and engineers are pioneering new research and pursuing new technologies to reduce emissions….” and their statement on sustainability, “ExxonMobil is committed to creating sustainable solutions that improve quality of life and meet society’s evolving needs in ways that help protect people, the environment and the communities where we operate” can become a reality with Guyana as a partner/customer. Our beautiful nation is an essential part of the Guiana Shield, which is considered the lungs of the planet. Instead of drilling into an underwater mountain that creates an unhealthy environment for the marine life and the humans in the area, let’s work together to harness the increasing energy in our oceans. Instead of building a pipeline to take harmful gases onshore, let’s work together to build the infrastructure needed to transmit and add the harnessed energy from the sea into our Nation’s power grid.
Humanity is at a critical juncture in its existence. It is important that the key decision makers add to their current perspective to ensure a more holistic view is taken as to how we improve the life experience on our planet. The opportunity is before us and the time has now come for all of us to shift to a more sustainable business model that will also enhance the future possibilities of how growth can be achieved at the corporate level, the professional level, and the personal level. We will have an opportunity to live healthier and longer lives, while also achieving a higher level of living. If the leadership of ExxonMobil does not show the courage to meet their stated commitments through their company’s actions, then investor confidence will be lost and a new leader in the energy sector will emerge.
Best regards,
Jamil Changlee
Chairman
The Cooperative Republicans of Guyana
