Irrespective of who emerges the winner at the 2020 General and Regional Elections , one thing is certain, the Green State Development Strategy: Vision 2040 that was outlined by the government last year is not only well-intentioned but also a constructive starting point for maximizing the oil windfall’s benefits says Wood Mackenzie.
WoodMac, as it is commonly referred to, is a global energy, chemicals, renewables, metals and mining research and consultancy group with an international reputation for supplying comprehensive data, written analysis and consultancy advice.
According to the body in its latest report, the GSDS lays out three broad but key goals.
With respect to managing the natural resource wealth, WoodMac said, “The framework ranges from the economic to the environmental. For the former, it advocates firm fiscal policy and budget management, investment priorities and the creation of a sovereign wealth fund. For the latter, Vision 2040 flags the rights of indigenous peoples and of biodiversity…”
Turning its attention to the second goal, supporting economic resilience, WoodMac highlighted that the strategy speaks to diversification of industry, modernization of public institutions and regulation, and the build-out of domestic infrastructure (roads, sea, and air). It said that these are central while noting that the document’s environmental aspirations are laudable and include 100% renewables in electricity production, improved energy efficiency and lower carbon emissions.
As for the third goal, WoodMac highlighted this to be building human capital. In this regard, it said that the strategy speaks to improving health care and education. WoodMac said this is crucial as it represents the building blocks of sustained economic success.
Even with the foregoing in mind, WoodMac said it is still early days for Guyana’s oil and gas industry while noting that revenue may, in time, be much greater than anticipated.
“…Guyana may well be the last new major oil-producing nation. (But) what’s important now is that critical lessons are learned from those who have gone before…,” the industry analyst concluded.
