Introduction
Today’s column shifts the focus from taking stock of the prevailing PSA resource price on offer for the rights to extract crude oil towards estimating Guyana’s estimated recoverable oil resources. As noted in last week’s column, the resource price is alternatively represented as Government Take, or the Average Effective Tax Rate AETR, which is the price investors pay to produce crude for sale under the ruling PSA. The purpose is to afford comparisons, when the resource price is changed consequent to the public auction of future oil blocks
Taking stock
While my efforts to gauge Guyana’s holdings of crude oil resources for this series, has been shaped by many considerations, two primary drivers inform it. Firstly, a strong bullish outlook on Guyana’s hydrocarbons potential. And second, as noted last week, the incentivizing/disincentivizing investor “resource price” set by the ruling PSA. The first driver complements my long declared bullish outlook. And, the second, invokes the public auctions PSA template to be implemented.
