Road Map: Why Guyana’s 13 to 15 billion barrels of oil reserves are on the cards

Introduction Today’s column presents my justification for the “bullish estimate of 13 to 15 billion barrels of high quality oil as Guyana’s reserves potential.” Based on this estimated potential, I have gone further to predict Guyana’s daily rate of production (DROP) at full ramp-up (or operating at maximum/peak output) is likely to be as high as 1.5 to 2.5 million barrels of high quality crude oil per day.

Evaluating Open Oil’s Financial Modeling of Guyana’s 2016 PSA – 2

Introduction Within hours of the publication of my last Sunday’s Stabroek column, where I had indicated my intention to  write a “three-part review of Open Oil’s reported financial modeling exercise of Guyana’s 2016 PSA”, its Founder and Author of the exercise wrote to the Stabroek News Editor “to correct some inaccuracies” (letter published, Monday, May 7, 2018).

The petroleum project life cycle

The economic perspective

Introduction This week’s column wraps up the ongoing discussion from an economic perspective of the last remaining of the five items, which that I had earlier identified from Guyana’s fiscal regime for its 2016 production sharing agreement, PSA.

The economic perspective

Resources, reserves and tax compliance

Introduction Last week’s column addressed two of five topics singled out earlier for comment in order to highlight their significance from an economic perspective; namely 1) Government take/developmental benefits/economic profit; and 2) accounting for costs.

Government take and the 2016 PSA: Misleading metric

Rational incentive Based on the economics Nobel Prize winning theory of “incomplete markets”, my previous column posited that, the Parties to Guyana’s 2016 PSA have a rational incentive to re-negotiate the contract, if underlying conditions of the country’s petroleum sector drastically change.