President Dr. Irfaan Ali has affirmed that Guyana will remain an oil-producing nation well beyond 2050. This statement was made during the New York Times’ Climate Forward event today, where he emphasized the critical role of the country’s oil sector in national development and global energy security.
In his address, President Ali underscored that while Guyana is committed to its energy transition goals, the nation’s economic trajectory and energy needs necessitate continued oil production. “We all know that petroleum and the petroleum industry will still have a space in the energy matrix,” he stated, adding that transitioning to renewables is not a one-size-fits-all solution for developing countries.
Ali also highlighted the importance of oil revenues in funding Guyana’s extensive socio-economic programmes. “Our priority is to do exactly what Norway did, to to invest to ensure our people every single family, prosperity must come to every single family. We must have world class health care, world class education, world class infrastructure,” he remarked. He also pointed out that oil production is a critical component in supporting the financial backbone for Guyana’s ambitious Low Carbon Development Strategy (LCDS), which balances sustainable development with climate commitments.
While addressing concerns over the long-term environmental impact of oil extraction, Ali maintained that Guyana’s oil sector is being developed with stringent environmental safeguards. He added that Guyana has one of the most modern and strict frameworks in place to ensure responsible extraction and that all oil production will continue under strict environmental guidelines to mitigate any potential harm.
Guyana’s continued role in the oil industry, the President explained, is not just about domestic growth but also about global energy stability. He noted that with the ongoing geopolitical instability and fluctuating energy markets, the world will still rely on stable oil producers like Guyana to meet energy demands.
President Ali noted that many countries and international organizations are advocating for a rapid shift away from fossil fuels to combat climate change. However, he argued that the transition must be equitable, taking into account the differing circumstances of developed and developing nations. “For the developing world, for the transition, the just transition into renewables, where is the battery power coming from? Who controls the market for the battery power, how much of the environment will be subject to destruction to get the raw material for the supply of batteries globally,” he asserted.
He also noted that Guyana’s oil production aligns with its climate goals, as the country continues to uphold a strong environmental record with its vast forest cover acting as a significant carbon sink. He was also keen to highlight that Guyana is a net-zero country when it comes to carbon emissions, thanks to its forests. Ali stressed that overall, his government is committed to the environment, even as it utilizes the country’s natural resources to support its development.
In response to potential criticisms from environmentalists, President Ali emphasized that the government is not choosing oil over the environment but is instead working to balance development with sustainability. He mentioned ongoing investments in renewable energy projects and efforts to diversify the economy as part of a comprehensive strategy to reduce dependence on oil in the long term.
